Development of underground mines is the only way forward to meet the future coal needs of the country as the reserves available for open cast mining would be exhausted in the next 30 years or so, according to S Narsing Rao, chairman and managing director (CMD) of state-owned Singareni Collieries Company Limited.
Speaking to media on the sidelines of a seminar here on Friday, Rao, who will be taking charge as CMD of Coal India Limited in April, said the country required an additional supply of over 200 million tonnes. This even if it's assumed that around 45,000 Mw of the total 12th Plan target of creating an additional installed capacity of 75,000 Mw, is under coal-fired projects.
And that is just about meeting the power sector needs. The country is already facing a shortage of 100 million tonne on Friday, he said.
“It would be a daunting task,” he said referring to the achievement made in the current Plan period. The country started off with around 400 million tonnes at the beginning of 11th Plan. The present production is around 550 million, an increase of about 150 million tonnes, according to him.
He said the problems of land acquisition and issues of environmental clearances should not be made as an excuse by public sector companies for going slow in ramping up capacities. Proper rehabilitation of displaced people would solve land acquisition problems.
Singareni, he said, was focusing on development of underground mines with 30 such new projects currently in exploratory stage. The company has proposed a capital expenditure of close to Rs 11,000 crore in the 12th Plan of which Rs 7,000 would go into a 1000-Mw power project using the residual reserves of abandoned coal mines.
It has also proposed to enhance coal production to 80 million tonnes by the end of 12 Plan from the current 57 million tonnes.