Team News Riveting
Raipur, August 2
South Eastern Coalfields Limited (SECL) has reported a drop in the coal production in July at a time Chhattisgarh is eyeing to increase its cut.
The Bilaspur-Chhattisgarh-based subsidiary of state-run Coal India Limited (CIL) has produced 9.1 million tonnes (MT) of coal in the month of July as against 10 MT produced during the corresponding period of last year, registering a drop of 8.4 per cent. Even the company’s production has come down compared to June month’s 10.6 MT of coal production.
The off-take or selling of coal has also been affected in the month of July. While the offtake registered a fall of 6.3 per cent, SECL sold 11.8 MT of coal compared to June month’s 12.9 MT, according to CIL’s monthly report.
The fall in SECL physical performance came at a time Chhattisgarh government is batting for increasing volume of coal received from the company. Chief Minister Bhupesh Baghel has written a letter to the Union Minister for Mines, Pralhad Joshi urging to enhance supply for the state’s steel sector.
“You will agree that it would be a very unfortunate decision for the leading coal-producing state of the country to not be able to supply coal to its small-scale industries (located in the state),” Baghel wrote to Joshi. He said SECL had decided to stop the coal supply to Chhattisgarh-based steel units and other industries (except power sector) from the month of August.
“This would have a serious impact on the economy of Chhattisgarh and the industrial facilities barring power plants had to be shut down,” the Chief Minister said. He urged Joshi to direct the officers of SECL to continue the uninterrupted supply of coal as per the demand of the steel manufacturers of the state.
The mineral-rich Chhattisgarh state contributes about 20 per cent to the country’s secondary steel output. The sector however does not remain exceptional despite it ranks second in coal production by
contributing over 18 per cent to the total national output. SECL has been mining about 150 MT of dry fuel annually.
According to local industrialists, the SECL has been catering hardly 25 per cent of their demand. “The steel sector in Chhattisgarh including captive power plants requires around 20 to 22 MT annually. But we are getting hardly 25 per cent of the demand,” Anil Nachrani, member of the steel ministry’s advisory committee for secondary steel industry and president of Chhattisgarh sponge iron manufacturers association, said.
The condition of the secondary steel sector is critical in Chhattisgarh despite an abundance of coal reserves, he added.
