90 Coal India and the Ministry of Coal have consistently blamed the under

90 coal india and the ministry of coal have

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90 Coal India and the Ministry of Coal have consistently blamed the under-production on delays in obtaining environmental and forest clearances from the Ministry of Environment. Data from CIL does not justify this claim. A closer look at 2010-11 production levels from five CIL subsidiaries for which Greenpeace obtained data shows that these five companies had a permitted production level of 405 mt, against which they produced only 353 mt. These five subsidiaries accounted for 82% of CIL’s production in that year. In April 2012, Minister for Environment and Forests Ms. Jayanthi Natarajan stated that the MoEF has given clearances (for both CIL and non-CIL projects) for 830 mtpa of coal, against which the production in (2012) was only ~550 mtpa. 91 Other analyses have shown that the MoEF approval rate for projects is nearly 100%, with virtually no projects rejected. 92 2007-08 2008-09 2009-10 2010-11 Permitted Actual Permitted Actual Permitted Actual Permitted Actual ECL 19.41 24.05 31.5 28.09 31.02 32.37 32.88 30.76 NCL 58 59.62 61.25 63.65 66.5 67.67 72 66.25 MCL 132.57 88 132.57 96.33 132.57 104.13 132.57 100.27 SECL 100.85 88.50 102.85 93.79 111.915 101.89 117.71 108.44 CCL 44 44.05 47 44.30 48 47.08 50 47.52 Total 354.84 304.24 375.18 326.17 390 353.16 405.17 353.25 Table 3: Permitted vs actual production (million tonnes) ECL: Eastern Coalfields, NCL: Northern Coalfields, MCL: Mahanadi Coalfields, SECL: Southeastern Coalfields, CCL: Central Coalfields. Data on permitted production levels for Western Coalfields and Bharat Coking Coal Limited was not provided to Greenpeace Is CIL’s under production an indicator of poor reserve certainty? Coal India: Running on empty?
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23 Conclusions Section 06 Coal India’s initiative to rely upon global capital markets to support its corporate activities brings with it increased requirements for transparency. Investors in the global market seek a uniform system of assessing coal reserves. Coal industry officials from around the world have labored for over a decade to establish such a system. This brief study shows that the initial review by CMPDI using international standards has produced extractable coal reserve estimates 16% below Coal India’s estimates contained in its 2010 Red Herring. The relationship of the estimates under the international standards and that produced by CIL under India Standard Procedures (ISP) needs to be reconciled. The logical next step is an independent assessment of Coal India’s extractable reserves and current mining practices, taking into account geological, economic and feasibility issues. This study has identified at least one area where the information that formed the basis of CMPDI’s 18.2 billion ton estimate is incomplete. An independent evaluation can test whether Coal India’s extractable reserve figure of 18.2 billion tons is overestimated. Coal India’s efforts to secure additional extractable reserves from exploration, foreign acquisition and imports needs to be carefully monitored going forward. A failure to base these monitoring efforts on solid information and risk analysis will inevitably lead to poor financial performance, adverse shareholder reactions and global pressures on Coal India to reform.
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1 Planning CommiSsion (Government of India), 2013. Twelfth Five Year Plan (2012-2017) Economic Sectors. P.136,
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  • Coal, Coal India Limited, CIL’s extractable coal reserves

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