Coal India is confident that it will compete in private, said Chairman Pramod Agarwal, adding that there is no need for “an undue worry.”
The comment comes as trade unions continue to oppose the opening up of the commercial mining sector.
Agarwal said there were no proposals to give away any of the company’s commercial mining blocks.
“The company has sufficient blocks with abundant resource capacity to continue as a commercially viable entity even in the competition era… there is no cause for concern,” he said in a statement.
The Unions are strongly opposed to competition, as they feel that it will have an adverse effect on Coal India. They also fear that the Center may hand over partially explored Coal India blocks to private players.
“Key issues, which will help improve and stay ahead of competition, include uniform quality of coal, cost efficiency in production and reliable timely delivery schedule,” Agrawal said. “Introduction of higher degree of mechanised mining and increased supplies are other focus points.”
A company executive said on condition of anonymity, “Commercial mining complements our efforts in increasing the country’s coal output, but it may not be viewed as competition to CILNSE 4.41 %. It would not unsettle us”.
Coal India said it had 447 coal blocks, mostly explored, under its disposal. In addition, 16 blocks have recently been allocated to the company. The combined confirmed resource of these 463 blocks is close to 170 billion tons (BT) while the total peak production capacity of the newly allocated deposits is 264 million tons per year.
According to the statement, Coal India is increasing its internal operational efficiency. The synergy of efforts with the state and central authorities concerned to resolve issues related to increasing output and supplies is a more critical concern for the company.
Central Mine Planning and Design Institute Ltd, an in-house consulting firm with over 40 years of expertise, is a major competitive advantage for Coal India. It sorts out most of Coal India’s mining issues, giving it an edge over competition. The talented pool of multidisciplinary professionals is on the edge.
“Commercial miners can step in to fill the gap bridged through imports,” the Coal India executive said.
“Their presence does not dent its status. The company is resilient and is capable of expansion.”
