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Monday, 11 Mar 2013
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 Coal India: Unable to cope with the Demand
Chart_Coal India Production Target_ProjectsToday


Coal India Limited (CIL) has set a production target of 492 million tonne for 2013-14. This is just six per cent higher than the target of 464 million tonne, it had fixed for 2012-13. It may look adequate when compared with the 615 million tonne target, Coal India has to achieve by 2016-17, but it may not be good enough to meet the increasing demand from sectors like steel and power.


Coal remains the primary energy source used in power generation and accounts for 67 per cent of total electricity generation. The inability of Coal India to meet the demand of working power plants has increased the peak power deficit to around 9 per cent during 2012-13.


Coal India is committed to supply around 80 per cent of the coal requirements of the existing as well as new power plants expected to be commissioned during the 12th Plan period. The government expects around 60,000 MW of coal-based power generation capacity to come up by 2016-17.


Coal India will sign about 143 Fuel Supply Agreements (FSAs) by 2014-15 with the power projects which have been assured coal supply during the 12th Five-Year Plan period.


As of 20 February 2013, Coal India has signed FSAs with 55 power plants with a capacity of 21,741 Mw which are either commissioned after 31 March 2009 or are currently under various stages of implementation. Additionally, 92 more FSAs are to be signed by 31 March 2013.


The 2013-14 Budget mentioned about the likelihood of Coal India taking up mining development project with private developers under the PPP framework.


Infrastructure Sector Developments:


  • The Public Works Department (PWD), Maharashtra has invited bids for Watur-Jintur-Aundha-Basmat-Phata road project on DBFOT basis.
  • The Delhi Metro Rail Corporation (DMRC) has invited bids for phase III of Delhi MRTS project. The work is estimated to cost Rs 235 crore.
  • PBA infrastructure has received an order worth Rs 780 crore from Solapur Tollways for four laning of Solapur (249 km) to Maharashtra-Karnataka border (348.800 km) section of NH-9 on BOT (Toll) and DBFOT basis.
  • The Central Public Work Department has invited bids for construction of Rs 188 crore IIT mandi project in Himachal Pradesh.
  • Valecha Engineering secured three contracts worth Rs 141.03 crore.
  • The Madhya Pradesh Road Development Corporation (MPRDC) has invited RfQs for development of roads on DBFOT basis in the state. The last date for submission of bids is 6 April.
  • The Karnataka Road Devp. Corpn. (KRDCL) has invited RfPs for maintenance and transfer (OMT) of roads in the state under PPP-OMT-Toll basis. The last date for submission of RfPs is 25 April 2013.


Power Sector Developments:


  • DLI Power India has invited bids for EPC work of 2x4 Mw Raura hydro electric project at Raura Khad in Kinnaur district of Himachal Pradesh.
  • NTPC will invest Rs 1314.57 crore in Chatti-Bariatu Coal Mining Project having rated production capacity of 7 million tpa in Jharkhand. NTPC is also awaiting environmental clearance for its Rs. 11638.55 Crore 2x800 Mw Gadarwara Super Thermal Power Project, Stage-I in Madhya Pradesh.
  • Aparimita Power Ventures (APVL) has invited bids for civil work of 2x2 Mw Kumbenahalli mini hydel project in Karnataka.
  • Sun Edison India to set up a 10 MW solar photovoltaic project in Tamil Nadu.
  • Kalpataru Power Transmission and its subsidiary JMC Projects secured overseas and domestic orders worth over Rs 1,810 crore.


Manufacturing Sector Developments:


  • Rashtriya Chemicals and Fertilizers (RCF) received Pre-PIB (Public Investment Board) clearance for adding 12.7 lakh tpa of urea capacity at a cost of Rs 4,112.5 crore at its Thai III Project.
  • Steel Authority of India (SAIL) plans to spend Rs13,000 crore in 2013-14 to part-fund ongoing expansion, which will take its installed capacity to over 24 million tpa.
  • Dalmia Bharat Sugar and Industries to invest about Rs 200 crore to double the crushing capacity of its Kolhapur sugar plant in Maharashtra.
  • Hindustan Petroleum Corp Ltd (HPCL) to invest Rs 37,000 crore in setting up a nine million tonne oil refinery and a petrochemical complex at Barmer in Rajasthan.


Quote of the week:

S Narsing Rao_CIL_ProjectsToday  

“Overall our supplies to the power plants as on 28 February 2013 is 91 per cent. We have made available coal in adequate quantities ... and we assure that by the end of March 31, 2013 we will be post 92 per cent”

S Narsing Rao,
Chairman and MD,
Coal India


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