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Time of India
4 days ago
- Business
- Time of India
Eight new coking coal washeries with 21.5 MTPA capacity in pipeline; output rises to 66.47 MT
New Delhi: Eight new coking coal washeries with a combined capacity of 21.5 million tonnes per annum (MTPA) are being set up across Jharkhand and West Bengal as part of the government's efforts to boost domestic supply and cut imports for the steel sector, the coal ministry said. In a written reply in the Rajya Sabha, Union Minister of Coal and Mines G. Kishan Reddy said the washeries — at Bhojudih (2.0 MTPA, West Bengal, FY2025-26), Patherdih II (2.5 MTPA, Jharkhand, FY2026-27), New Moonidih (2.5 MTPA, Jharkhand, FY2028-29), Dhori (3.0 MTPA, Jharkhand, FY2029-30), New Kathara (3.0 MTPA, Jharkhand, FY2028-29), New Rajrappa (3.0 MTPA, Jharkhand, FY2029-30), Basantpur-Tapin (4.0 MTPA, Jharkhand, FY2028-29) and New Sawang (1.5 MTPA, Jharkhand, FY2028-29) — are at various stages of construction, tendering or contract award. The projects are part of ' Mission Coking Coal ' launched in August 2021 to raise domestic production and reduce import dependence. Coking coal output has increased from 44.79 MT in 2020-21 to 66.47 MT in 2024-25. Coal India Ltd (CIL) has offered 11 discontinued coking coal mines to the private sector under a revenue-sharing model and commissioned the New Madhuband Coking Coal Washery of Bharat Coking Coal Ltd (BCCL) in 2023-24 with a capacity of 5 MTPA. The tenure of coking coal linkages in the Non-Regulated Sector (NRS) linkage auction policy, amended in 2020, has been extended to up to 30 years. A new sub-sector — 'Steel using Coking coal through WDO route' — created in March 2024 under the NRS linkage auctions is expected to increase domestic consumption and availability of washed coking coal. Coal PSUs follow policies issued by the ministry for transparent allocation, including the New Coal Distribution Policy (NCDP), the Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI), the Linkage Auction Policy for NRS, Bridge Linkage Policy, Single Window Mode Agnostic Auctions, and linkage rationalisation. Supplies are made under Fuel Supply Agreements between coal companies and consumers.
Time of India
24-05-2025
- Business
- Time of India
Coal ministry sets FY26 production target at 1,150 MT; proposes coal trading exchange, policy reforms
New Delhi: The Ministry of Coal has set a coal production target of 1,150.39 million tonnes (MT) for the financial year 2025-26, with Coal India Limited and its subsidiaries contributing 875 MT, Singareni Collieries Company Limited (SCCL) 72 MT, and captive and other producers 203.39 MT. To further open up the coal market, the ministry has proposed the establishment of a Coal Trading Exchange (CTE) for online trading, clearing, and settlement. Legislative backing is being sought for the exchange through amendments to the Mines and Minerals (Development and Regulation) Act, 1957. A draft Cabinet note was circulated on March 7, 2025, and public comments have also been invited via the ministry's website. The ministry is also planning to allow coal linkages without a specified end use, requiring changes to the Non-Regulated Sector (NRS) linkage auction policy of 2016. Auctions to NRS sub-sectors under the current policy will continue. In terms of quality assurance, the government will increase the grade conformity of Third Party Sampling beyond the current 80% achieved in FY25. The system, introduced in 2015, ensures quality at the loading end and now covers both power and non-power consumers. Currently, 12 agencies are empanelled for this task. A coal production and dispatch target of 203.4 MT has been set for FY26 from auctioned mines. The government plans to launch three auctions during the year and aims to successfully auction 25 mines. Twelve mines are expected to receive mine opening permissions, while seven may begin production. Amendments to the Mineral Concession Rules, 1960, are proposed to implement new guidelines for mining and mine closure plans issued in January 2025. These changes would permit coverage beyond block boundaries and allow minor changes in plans with company board approval. To intensify coal exploration, a drilling target of 10 lakh meters has been set for FY26 under the Central Sector Scheme, NMET, CIL, and private sector. An outlay of ₹750 crore has been approved. Exploration efforts will focus on high GCV and coking coal areas and include revisions to guidelines for forest areas and seismic surveys. The ministry has set a target of producing 42 MT from underground coal mining in FY26. The strategy includes deployment of Continuous Miners, operationalising mines through Mine Developer and Operator (MDO) mode, and introducing revenue share rebates in commercial coal auctions. Land acquisition initiatives for FY26 include operationalising the Coal Land Acquisition and Management Portal (CLAMP), establishing a special tribunal in Talcher, amending the CBA (A&D) Act, 1957, and creating a land database under PM Gati Shakti. Mutation of 80% of CPSU-acquired land is also targeted.
