Date:22/12/2004 URL: http://www.thehindubusinessline.com/2004/12/22/stories/2004122201680200.htm

Back Coal India production target hiked to 332 mt

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Mr Dasari Narayana Rao (second from left), Minister of State for Coal & Mines, with (from right) Mr Naveen Jindal, MP & former Chairman, Sponge Iron Manufacturers Association (SIMA), Mr Sandeep Jajodia, present Chairman, and Mr P.R. Dhariwal, Vice-Chairman, (extreme left) at the 12th AGM of SIMA in the Capital on Tuesday. - Ramesh Sharma

New Delhi , Dec. 21

PRODUCTION target for Coal India Ltd (CIL) has been raised for the current year to 332 million tonnes from 315 million tonnes.

Also, in order to reduce the demand supply gap for coal in the next few years, the Government has initiated a process through which captive blocks allocated to private companies would be able to sell coal to the nearest public sector coal companies.

This was stated by the Minister for Coal and Mines, Mr Dasari Narayana Rao, here today while addressing the annual general meeting of Sponge Iron Manufacturers Association.

The Minister said that allocation of 35 new coal blocks is expected to be finalised shortly. He also said that the Government has decided to give preference to sponge iron industry over power plants while allocating coal blocks of superior grade coal.

"After a gap of more than a year we have commenced the meetings of the screening committee for allocation of captive blocks and about 35 coal blocks will be allotted during the current meetings," the Minister said.

He also said the Ministry was also looking at allowing consortium of small promoters to apply for captive coal blocks.

While commending the Association for making the domestic sponge iron industry the largest in the world in terms of production, the Minister said that the industry has to be more competitive at a global scale.

The Chairman of Sponge Iron Manufacturers Association, Mr Sandeep Jajodia, said that given the dynamics for the cyclic demand for steel, it will be prudent for sponge iron manufacturers to seize the opportunities offered by new technologies to sustain growth so as to serve the domestic steel industry in achieving its goal.