By Our Correspondent
ANGUL/SAMBALPUR/BHUBANESWAR: With 10 Central Trade Unions continuing their strike against commercialisation of coal blocks, Odisha is likely to take the maximum hit of around INR 70 crore loss, followed by Chhattisgarh INR 66 crore, Madhya Pradesh and Jharkhand INR 61 crore each, Maharashtra INR 27 crore, West Bengal INR 23 crore and Uttar Pradesh INR 11 crore.
Coal India Limited’s subsidiary, Mahanadi Coal Fields Limited (MCL) is running dozen over coal mines in Odisha. Most of the major power projects both public and private depend on MCL’s coal transportation in Odisha. “With strike continuing, things would take ugly note if strong steps are not taken,” said a power plant CMD based in Angul.
Of an average 1.5 million tonnes of coal mined by Coal India per day, around INR 106 crore of revenue goes to states’ exchequer. According to a coal ministry official, coal-bearing states, including Jharkhand, Chhattisgarh, Madhya Pradesh and Odisha, may suffer an estimated revenue loss of NR 319 crore on account of a three-day strike. Of the estimated INR 319 crore loss, Odisha is likely to take the maximum hit of around INR 70 crore.
In his appeal to the striking employees and their leadership to resume operations, BN Shukla, Chairman-cum-Managing Director, Mahanadi Coalfields Limited (MCL) said, “At the time when country is facing COVID-19 pandemic and threat from neighboring countries, we are required to stay united in the interest of the nation.”
The CMD said that producing one billion tonne coal for country by 2023-24 was an uphill task for Coal India, and private players would supplement Coal India’s production for bridging the energy deficit. Moreover, commercialisation of the coal mining in India is need of the hour to swiftly enhance coal production to meet the growing energy requirement, said Shukla. He emphasised that no government company had shown interest to take up the offered coal blocks since they are very difficult to mine.
In view of these facts, the CMD said,“There is no reason which justifies this strike and doing such activities will help Coal India produce sufficient coal to reduce the import.”While reminding that the Government of Odisha had declared coal mining as essential service under ESMA, the CMD urged striking employees to return to work without further delay.
Coal Ministry has also clarified that there is full thrust on Coal India to achieve 1000 million tonne dry fuel production by 2023-24, while India is importing about 250 million tonne, including 40 to 50 million tonne coking coal, for meeting its energy demand and paying Rs 1.5 lakh crore in foreign currency, besides losing on DMF, royalty and employment to local people.The Ministry has also clarified that there were no plan for privatization of Coal India or any of its subsidiary. Further, no coal block allotted to Coal India is being given to any private player.
Meanwhile, Coal India Limited’s output fell for a third straight month in June as it looks for ways to trim stocks and lift sales amid weak demand. The production of Coal India declined by 12.8% to 39.20 million tonnes in June compared to 44.95 million tonnes of coal in June last year.
The production in the first three months of 2020-21 dropped to 121.01 million tonnes from 136.94 million tonnes of coal produced in the April-June period of the previous fiscal. Coal India’s off take also dropped to 41.61 million tonnes in June from 48.98 million tonnes in the corresponding month of the previous fiscal. The coal off take by CIL declined to 120.62 million tonnes in April-June from 153.49 million tonnes of off take in the year-ago period.
Supplies outpaced production as the company is focusing on cutting its inventories, which currently stand at around 75 million tonnes. Utilities across the country also have total inventories of close to 47.16 million tonnes, which are enough to meet consumption for 27 days.
India’s thermal coal imports have fallen sharply since the virus outbreak, with the country’s receipts of overseas thermal coal slumping to 8.43 million tonnes in May from 15.16 million tonnes a year earlier
