New Coal India CMD says he will ensure doubling of coal stocks at power plants

28th May 2018

New full-time Chairman of Coal India Ltd (CIL), the largest coal miner in the world, says his priority will be to ensure that power plants have coal supply for at least 22 days henceforth.

“There was a recent meeting in the Ministry of Power where it was decided if we give power plants 14 lakhs tonnes of coal every day, no plant will see a critical supply situation. Since 5-7 days ago we have been sending 14 lakhs every day. Due to past issues on an average there is just ten day’s coal stocks at power plants. We have to try and ensure that power plants have stocks for 22 days, so if there is a delay of one or two days it isn’t critical,” said Jha CMD at Mahanadi Coalfield Ltd (MCL) until recently.

The constraint is in logistics and not production. “I cannot open a coal mine at short notice of 2-3 months, it takes between 3-5 years to open a new mine. As of today there is 45 million tonnes of stock with CIL but due to severe logistics, where there is coal there is no rail network, so until and unless that coal is transported to the power plant having coal has got no meaning,” said Jha.

MCL, in a first of its kind, has spent Rs 1000 crore on a 53 km long rail line. “The entire expenditure was borne by the CIL subsidiary but the facility was created for the state. Now we are evacuating coal through that. If Lord Jagannath permits that line can also be used for passenger trains,” said Jha.

CIL would continue to explore acquiring assets outside the country; funds are not a problem said Jha. “MCL alone has Rs 20,000 crore in bank balance and we are not able to spend it.

“We would like to see where we can gainfully invest this amount. That is why we are exploring the possibilities of creating infrastructure – we are going for railway lines, we are going for power plants, we will be going for Coal- to- Liquid project also and are keen on undertaking a pilot project,” said Jha.

Replying to a question on high fuel prices, Jha said it would have jack up the CIL cost.

The national miner is ready for competition from private players, says its 27th CMD. “Everyone says Coal India is a monopoly so let some private players also come and compete with us. Competition is always good. NTPC is competing with power producers, SAIL is competing with steel producers, so will CIL. Our workers are highly talented and will show their mettle when the opportunity comes they will prove they are second to none. If private players come into the picture through commercial mining, Coal India’s performance will only improve further,” said Jha.

During his term at the head of MCL, CIL’s most profitable subsidiary, touched historic production of 143.06 million tonnes during the last fiscal ending 31 March 2018. This was achieved a time when things were not always smooth sailing between the Coal Ministry under the BJP-led government at the Centre and the Biju Janata Dal government at the state. Refusing to be drawn into the debate, Jha said “I am a business house and my purpose is to see that I follow all rules and regulations of both the state and centre to achieve my business goals.”

He pointed out that MCL was the largest spender in Corporate Social Responsibility in the state, having spent Rs 180 crore in CSR last year. It had built a Rs 500 hospital and was building a Rs 100 crore heart research institute for western Odisha.

What he is keen on seeing happen most is a model rehabilitation project for which MCL has sought 430 acres of land from the state government. The rehabilitation towhship, MCL proposes to build with all infrastructure and civic amenities – sewage, water supply, school, cemetery – for about 5000 project affected families. A normal rehabilitation colony has been of about 50- 60 acres.

India still depends hugely on coal which also compensates for hydel’s negative production of 25 per cent, points out Jha. “The task of Coal India is mammoth, wherever you see a light burning, or a fridge running, remember a Coal India worker is toiling 700m below the earth somewhere to make that happen,” said Jha.

Source: THE ECONOMIC TIMES