The Hindu Business Line : Govt okays 43.5 mt additional coal capacity in April

Production plans
During the first month of the current fiscal itself, the Government has approved the creation of an additional 43.5 mt of coal production capacity.
To increase production in Bhubaneshwari opencast project of Mahanadi Coalfields to 20 mt a year.

New Delhi , April 29

To tide over the coal shortage plaguing the country, the Government is focusing hard on increasing domestic coal production in a big way.

During the first month of the current fiscal itself, the Government has approved the creation of an additional 43.5 million tonnes of coal production capacity. India currently produces a little over 400 mt of coal annually.

The Cabinet Committee on Economic Affairs (CCEA), which had three meetings during the month, has approved these additional capacity all of which would be through opencast mining.

In the first meeting, the CCEA okayed increase in the production capacity of Ashok open cast project of Central Coalfields from 1.5 mt to 6.5 mt in the first phase and another 3.5 mt in the second phase taking the total capacity to 10 mt annually.

This coal, it has been decided, would be made available to Rosa Thermal Power Station and other consumers.

In the second meeting, the CCEA again went ahead with plans to increase production in Bhubaneshwari opencast project of Mahanadi Coalfields from the existing 10 mt a year to 20 mt a year.

This coal, according to the approved plan, will be made available to NTPC and other State Government-owned thermal power stations in Orissa.

Outsourcing production

In the same meeting, the CCEA also approved outsourcing coal production to the tune of 10 mt from Kaniah opencast coal mining project of Mahanadi Coalfields, which would be completed in 2008-09 and would be supplied to Rajiv Gandhi thermal power station of NTPC in Orissa.

In the third meeting earlier this week, the CCEA gave the green signal for floating tenders for outsourcing additional coal production in Dipka opencast mine project by 5 million tonnes annually and in Gevra opencast project by 10 mt annually.

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