Private players can now explore coal reserve blocks

KOLKATA: Private players can now undertake the job of exploring coal reserve blocks allotted to private parties. Till now, Central Mine Planning and Design Institute (CMPDIL) was the only entity authorised to undertake exploration of coal reserves.

“While on one hand CMPDIL has been doubling its capacity, we have now allowed third parties to undertake exploration on blocks allotted to the private sector.

Currently, there is about 255 billion tonne of geological reserves but only 98 billion tonne of proven reserves. We need to speed up the rate of exploration of new blocks to meet demand projection in the long run.

We have prepared a guideline in conjunction with CMDIL so that new companies can get into the act. Currently, CMPDIL has a capacity to explore two lakh meter per year. This will be increased to four,” said HC Gupta. He was speaking to reporters on the sidelines of the 2nd Asian Mining Congress and International Mining Exhibition.

In the last few years, 170 blocks have been allotted to private parties for captive consumption and total reserves are about 138 billion tonnes.

This year about 50 blocks were allotted and captive production is likely to touch 23 million tonnes. It is estimated that by 2012 about 350 million tonnes of coal will be extracted from private mines.

These mines when start running on full capacity will produce about 800-900 million tonnes. About 30 blocks were allotted prior to 2003 and all these mines are expected to be in production by 2009-10.