Recently the Indian government claimed that they have decided to allocate 11 coal mines to Coal India Ltd, which means the annual capacity of this state-owned enterprise will increase about 225 million tons by 2022.
The goal of Coal India Ltd is to produce 1 billion tons of coal, above the current estimate of Treasury Department.
“The government has decided to allocate 11 coal mines to Coal India Ltd. Among them, 5 coal mines are reallocated and the others are new mines. ”Piyush Goyal, Minister of the Ministry of Coal Industry, said in an interview.
Before, Coal India Ltd has repeatedly requested for more mines in order to solve coal supply shortage. Subsidiaries of Coal India Ltd are short of coal reserves, including ECL, BCCL and WCL.
It has been revealed that all these 11 coal mines will be allocated to the 3 subsidiaries mentioned above. ECL will obtain 3 mines, and the rest shall belong to BCCL and WCL.
Besides, a leading group in Indian government is examining auction facility of coal mines, which is expected to report to Indian parliament within six months.