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Coal Shortage : 40 captive coal miners asked to ramp up production by government.


Date: 09-09-2021
Subject: Coal Shortage : 40 captive coal miners asked to ramp up production by government
The Ministry of Coal has written to the owners of 40 coal mines that produce solely for their own use, known as 'captive' mines to ramp up production as the government tries to address a shortage of coal. Union Minister, Prahlad Joshi, on September 8, directed Coal India to expedite the production to meet minimum requirements.

According to CNBC TV18, Hindalco, Ambuja Cements, NTPC, Nalco, Ultratech cements are some of the captive blocks that have been approached by the coal ministry.

The Minister has also decided to ban thermal coal import barring a few coastal power plants by 2024. According to him, the shortage has happened due to the rain around coal mining areas.

Reuters, however, on September 7 reported that the shortage is due to a rise in electricity demand. The report also said that the industrial companies which own these captive mines have been given a week to ramp up production to above 85% of existing targets

The Ministry also gave utilities companies that buy power from plants run on imported coal two weeks to increase procurement, according to Reuters.

Source:moneycontrol.com

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