Coal India set to diversify into non-coal mining areas in 2021 – Times of India

NEW DELHI/KOLKATA: State-owned Coal India Ltd (CIL) is set to diversify into non-coal mining areas in addition to make main investments in clear expertise in 2021 after demand for the dry gasoline remained muted for many of this yr amid the coronavirus pandemic impacting financial actions.
Against all odds, together with the stoop in coal demand, the federal government opened up the nation’s mining sector for personal gamers by auctioning 19 blocks.
Coal demand the world over is projected to fall by round 5 per cent this yr in contrast to 2019 whereas varied sectoral challenges are anticipated to persist in 2021, analysts mentioned.
“In 2021, we will try to get Coal India Ltd (CIL) to diversify into non-coal mining-related areas. It (CIL) will make major investments in sectors other than coal mining so that it is well prepared to make the transition away from fossil fuel.
“So, it (CIL) will make investments in renewable power, get into aluminium and clear coal expertise and can do loads,” Coal Secretary Anil Kumar Jain told PTI.
In the coming year, Jain said CIL is also likely to go ahead with its agenda of achieving one billion tonnes of production target by 2023-24.
CIL may also “go forward with one billion tonnes agenda. It is getting approvals. It is gearing up to hold enhancing its manufacturing which was 603 million tonnes final yr. It is taking upon itself larger and larger goal. It might be ready to obtain one billion tonnes (manufacturing goal) in 2023-24,” he said.
Noting that CIL has taken upon itself an investment plan of Rs 2.5 lakh crore, Jain said that out of the proposed outlay, a significant chunk would be spend on clean coal technologies and diversification.
“The relaxation of it (the funding might be) to improve coal manufacturing,” he noted.
About 2020, Jain said that auction of “business coal blocks was primary achievement (in the coal sector). We amended the Act to ease a number of issues”.
The auction of coal blocks for commercial mining witnessed “fierce competitors” and the 19 blocks that went under the hammer will generate total revenues of around Rs 7,000 crore per annum and create more than 69,000 jobs once they are operationalised.
As many as 38 mines were put on auction, which also marked opening up of the country’s coal sector to private players. The bidding also saw participation of players from sectors like pharma, real estate and infrastructure.
A total of 42 companies participated in the auction and 40 of them were private players. As many as 76 bids were received for 23 mines. Some of the large corporate groups that have bagged blocks include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power.
According to the secretary, the government facilitated the mining plan and made it eco-friendly to promote ease of business.
The coal ministry took initiatives to re-visit old laws with an aim to improve efficiency, ease of doing business, and to open up coal sector to improve domestic coal production and reduce imports.
Prior to amendments in the mining law, there was dominance of public sector companies both in exploration and mining of coal.
The Mineral Concession Rule, 1960 was governing many aspects of coal mining and required amendment in furthering the coal sector reforms.
Noting that the creation of a sustainable development cell was another achievement of the coal ministry, Jain said it will ensure CIL and other companies maintain environmental standards as well as that star rating of mines are done.
“Since coal mining is a core exercise we are not looking for there must be any slackening in our endeavour to keep the best setting requirements,” the secretary mentioned.
Sustainable Development Cell goals to promote environmentally sustainable coal mining and tackle environmental issues in the course of the decommissioning or closure of mines. The cell additionally formulates coverage framework for the environmental mitigation measures, together with the mine closure fund.
The coal sector additionally confronted tough climate in 2020 as gasoline demand slumped due to sluggish financial actions in the wake of the coronavirus pandemic.
A coal ministry official who didn’t want to be named mentioned that the majority sectors of the nation have been hit due to the pandemic and the coal business was no totally different. Sale of coal fell as the facility sector, a serious client of the dry gasoline, noticed a decline amid the lockdown, the official added.
CIL chairman Pramod Agarwal mentioned the corporate is planning to produce 650-660 million tonnes of coal this monetary yr whereas manufacturing of 334 million tonnes was achieved until November.
Regarding coal demand in 2021, Jain mentioned it can rely upon many issues, together with motion of the economic system.
Global coal consumption is estimated to have fallen 7 per cent, or over 500 million tonnes, between 2018 and 2020. In 2019, international coal demand decreased 1.8 per cent after two years of progress as energy era from coal weakened globally, together with in India.
Analysts opined that there might be a modest rise in demand in 2021 and costs are additionally anticipated to agency up.
Coal demand is set to revive by 2021 in India and different Asian nations, together with China, that are the most important shoppers of the gasoline, Moody’s Investors Service mentioned in a report in October.
Coal use is anticipated to improve 3.8 per cent in 2021. In the medium time period (to 2025), India has one of the best potentials to improve coal consumption as electrical energy demand rises and extra metal and cement are required for infrastructure initiatives, as per the International Energy Agency mentioned.