Date:01/06/2004 URL: http://www.thehindubusinessline.com/2004/06/01/stories/2004060101590200.htm

Back Eastern Coalfields gets Plan panel nod for Rajmahal mine expansion

Badal Sanyal

Kolkata , May 31

THE management of Eastern Coalfields Ltd (ECL) has received an "in-principle" clearance from the Planning Commission for its proposed expansion programme of the Rajmahal opencast mine from 10.5 million tonnes (mt) to 17 mt per annum. The expansion programme is to be carried out departmentally, entailing an investment of about Rs 600 crore.

The Rajmahal expansion is considered important as the mine is linked to feed coal to National Thermal Power Corporation's (NTPC) two super-thermal power plants at Farakka in West Bengal and Kahalgaon in Bihar. In fact, these two power plants are expanding at a fast pace. Hence the need for expansion of this mine. However, an early meeting of the Public Investment Board (PIB) is sought to get final approval from the Union Government.

ECL, which expects to turn around by 2007 as a sequel to restructuring its capital base and also due to the improved functioning in recent times, is now awaiting in-principle clearance from the Planning Commission for the greenfield Chupervita opencast project, to be developed to mine about 4 mt of non-coking coal per annum. After obtaining approval from the Coal India board, a project report has been submitted to the Union Ministry of Coal for its clearance.

In addition, the company has mooted the idea of introducing continuous miners with shuttle cars at three mines. A project report in this regard has been approved by the ECL and CIL boards. A global tender will be issued shortly inviting technical bids from reputed international companies which are keen to take up such mining operations.

Coal supply improves: ECL's coal supply to power plants in the month of April 2004 registered a growth of about 10 per cent over the same month last year. Despatch of coal during the month was about 2.4 mt against the target of about 2.1 mt. Sales realisation was about Rs 287 crore compared with about Rs 335 crore in April 2003. Special drive has been initiated to improve the realisation. The company has been able to reduce the month's loss to the tune of Rs 13 crore against the loss of about Rs 56 crore for the same month last year.

The month's overall performance is considered important for ECL as the Ministry of Coal is keen to see that the company gets itself out of the purview of the Board for Industrial and Financial Reconstruction and effects a turnaround as early as possible.