Amid the coalgate controversy, Coal India’s subsidiary, the Western Coalfields Ltd (WCL), which has operations in Maharashtra and Madhya Pradesh, proposes to launch slew of decisions to bring in transparency and innovation in its operations. In an exclusive interview with Sanjay Jog, WCL CMD, D C Garg explains company’s growth strategy.
What are WCL’s initiatives to curb illegal mining and improve efficiency?
Let me first clarify that WCL’s area of operations in Maharashtra and Madhya Pradesh is free from the menace of illegal mining. Still, we always lay emphasis on making our operations more transparent with better efficiency and innovations. We propose to launch Global Positioning System (GPS) based truck monitoring. This unique initiative will keep online track of truck movements in coal transportation to arrest in-route pilferage of coal. The project will ensure higher productivity and speedy coal evacuation. An internal study done by Coal India in respect of opencast mines where heavy earth moving machinery usage is prevalent, showed that losses could run over Rs 50,000 if a 170 tonne truck at any of its mines remained idle for half-an-hour. The loss will be almost double with 240 tonne capacity of truck.
WCL has held discussions on August 9 with representatives of 19 prospective bidders which include ITI Mumbai, CMC, Nagpur, NIIT Technologies, New Delhi, Neco, Nagpur and V Link, Chennai.
This apart, WCL is not exploring joint venture partnerships with the private sector to expand its production. Instead, we will adopt the MDO (Mine Development Operation) route. The idea is the MDO will operate the mine as a contractor for 20 years. In this model, WCL will take care of land acquisition and major infrastructure required to be put in place for mining, while the MDO will operate the mine on a turnkey basis for 20 years. WCL believes that ultimately a long-term relationship pays. MDO can bring in the requisite technologies and pass on some of the efficiencies of large scale operations. The initiative is in conceptual stage. A lot of deliberations will be ensured to seal the gaps if any.
So far WCL has identified Dhankasa and Jamunia mines in Madhya Pradesh and Nand block, Umrer and Borda, Morpar extension in Maharashtra for launching MDO model. This model has already been implemented in few mines by Eastern Coalfields Ltd, Mahanadi Coalfields Ltd and Bharat Coking Coal Ltd. We are watching the experience to get second mover advantage.
What steps have been taken for e-procurement?
E-procurement refers to processing of procurement case of goods and services through online using the web based technology. At present, e tendering with e-price bid option of e-tendering is adopted. Other options like e tendering e-price bid followed by reverse auction will also be adopted. Last year we procured 90% of our major stores amounting to Rs 270 crore through e procurement. This year the tally will be 100% procurements through this route. The idea is to enhance the effectiveness and thereby increase user friendly interface.
What measures are taken by WCL to expedite nearly 20 projects which could not start for want of various clearances and rehabilitation issues?
It is true that environment and forest clearance is a time consuming process so also land acquisition. Nearly 20 projects spreading over 7,500 hectare of land are currently held up as WCL has yet to get environment and forest clearances. The Forest Act, 1980 is crucial for getting forest clearance. During current year 2012-13, WCL’s coal production of 3.15 million tonne is affected due to lack of forest clearance for couple of mines in Maharashtra and Madhya Pradesh. We are making all efforts to get it on a priority basis.
As far as land acquisition is concerned, it is done as per the provisions of Coal Bearing Area Act and Land Acquisition Act, 1894. Already, 3,500 hectare of the total 7,500 hectare required for 20 projects has already been acquired. The balance will be done shortly. The revision in compensation packages by Coal India and Maharashtra government will come quite handy to complete land acquisition. The revised package envisages compensation of Rs 6 lakh per acre for baron land, Rs 8 lakh per acre for non irrigated land and Rs 10 lakh per acre for irrigated land. Earlier, project affected persons used to get compensation of Rs 1 to 2.50 lakh per acre.
We hope to achieve coal production of 14-15 million ton in phased manner from these 20 mines in next five years.
What are production targets for 2012-13?
WCL contributes nearly 8.19 per cent to the national coal production. During 2011-12 WCL produced 43.11 million ton from its 82 operating mines. Our target for 2012-13 is 45 million ton. We have planned capital expenditure of Rs 350 crore during current fiscal. During 12th plan period our total investment will be Rs 2,200 crore.
