Whalesbook
Twelve mining projects under South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India, are significantly delayed. The primary reasons cited are difficulties in securing environmental (green) clearances and acquiring the necessary land for these projects. This situation arises at a time when the Indian government is actively focusing on increasing domestic coal production to reduce import dependency.
The scale of the delayed projects varies by cost. Three projects are valued at Rs 500 crore or more, five are between Rs 150 crore and Rs 500 crore, two between Rs 100 crore and Rs 150 crore, one between Rs 50 crore and Rs 100 crore, and one between Rs 20 crore and Rs 50 crore.
SECL has a total of 30 ongoing projects under implementation. While 18 are proceeding as scheduled, the remaining 12 are experiencing setbacks. Projects costing Rs 500 crore and above are monitored monthly by the Ministry of Coal, while those costing Rs 150 crore and above are tracked via an online system managed by the Ministry of Statistics and Programme Implementation (MoSPI).
SECL has 73 major coal projects approved, aiming for an ultimate capacity of 302.75 million tonnes per annum with a sanctioned capital of Rs 44,571 crore. SECL produced 167.487 million tonnes of coal in 2024-25 and its coal reserves are spread across Chhattisgarh and Madhya Pradesh.
Impact
The delays could hinder India's coal production targets, potentially increasing the need for imports and affecting energy supply stability. This could lead to increased costs for power generation and related industries. Rating: 7/10.
Difficult Terms
Green Clearances: Approvals required from environmental authorities to ensure that a project does not harm the environment.
Land Acquisition: The process of obtaining private land for public or industrial use, often involving compensation to landowners.
Mini Ratna: A status granted to certain public sector undertakings in India, indicating a degree of financial autonomy and operational efficiency.
MoSPI: Ministry of Statistics and Programme Implementation, a government body responsible for monitoring development projects.
Open Cast Mine: A coal mine where coal is extracted from the surface rather than from underground tunnels.
Underground Mine: A coal mine where coal is extracted from tunnels dug deep into the earth.