Coal Sector in India – Highlights of 2011

Posted on December 31, 2011 by


2011 was a eventful year for the coal sector, amidst increased demand driven by increasing industrial activities, attempts to streamline coal linkages and policy for competiting bidding of coal blocks. . Some of the key events are as under

Increased Coal Production
From 1 April, to 30th November, Coal India Limited and Singareni Colleries Company limited together supplied 214.27 million tonnes of coal to the power plants as against the pro-rata ACQ of 282.87 million tonnes showing overall materialization of about 92%. This was achieved despite unprecedented rain and long strike in Telangana region affecting coal production.

Maharatna status for CIL
CIL was awarded the Navratna company status since August, 2008. Keeping in view the importance of coal in country’s economy , CIL was conferred with the Maharatna status in April 2011. As Maharatna Company, CIL would now have enhanced financial powers and greater functional autonomy .

Navratna status for Neyveli Lignite Corporation
NLC was awarded Miniratna (Category-I) company since 30 August 2004. With the growth of lignite production and increased power generation activities in the region, NLC was conferred with the Navratna status from 11th April 2011. As Navratna company, NLC would now have enhanced financial powers and greater functional autonomy .

Compensation for land acquisition
The proposals related to land acquisition and compensation received from coal companies were processed and funds released for payment of compensation. Upto 30th November of the financial year,  50 notifications were issued and Rs. 24.14 crores was released to coal companies for payment of compensation.

New Coal grading system from 2012
The Ministry of Coal is migrating to Gross Calorific Value (GCV) based grading system fro non-coking coals from the existing Useful Heat Value (UHV) based system with effect from 1st January 2012 which is an international practice. The new system is not likely to lead to any significant change in the pricing.

Advertisements
Posted in: Uncategorized