Cancelled coal mines: Production still far below FY15 level


Cancelled coal mines: Production still far below FY15 level

About fifty months after the Supreme Court cancelled 204 captive coal block licences saying these were allocated in an illegal and arbitrary manner, production from the blocks are far below the level before the court’s decision.

As the court had, in its September 2014 order, allowed 42 operational blocks of the cancelled lot to function till March 2015, these mines’ production peaked in FY15 at 43 million tonnes (MT) but has since plunged headlong.

According to official sources, 86 of the cancelled blocks have been reallocated so far and only 23 of these are currently operational. Post-reallocation, these blocks’ cumulative production till October 2018 was just 56 MT, that is, average annual production of a little over 16 MT.

(Overall, 92 blocks were reallocated, but contracts for six mines have since been terminated due to non-compliance with the prescribed norms.) Read More

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