If everything goes well, some of the closed coal mines of Western Coalfields Limited (WCL) may be restarted. Coal India Limited (CIL) is examining feasibility in this regard through ‘Mine Developer and Operator’ (MDO) mode. However, the decision in this regard would depend on estimation of balance coal reserve and other technical parameters, including, safety for these mines, by Central Mine Planning and Design Institute. This was stated in Lok Sabha by Prahlad Joshi, Minister of Coal and Mines and Parliamentary Affairs, in response to an unstarred question by Krupal Tumane, Member of Parliament from Ramtek in Nagpur district. In response to Tumane’s query if WCL mines were closed due to higher production cost or losses, Joshi informed Lok Sabha that one mine was closed as per closure plan and operations of seven others were suspended due to ‘econmic unviability and safety issues’ from 2017-18 to 2019-20.

 

These seven mines include four from Maharashtra namely Pipla in Nagpur area, Chanda Rayatwari Colliery in Chandrapur, Kumbharkhani in Wani North area, and AB Incline in Nagpur area. Other three mines are in Madhya Pradesh namely Ambara in Kanhan area, Ganpati and Vishnupuri-I in Pench area. Joshi informed Lok Sabha that profit before tax of WCL during 2020-21 was Rs 352.56 crore. WCL is working on increasing its coal production. As per the plan, in 2021-22, WCL aims at coal production of 60 million tonne. The production target for next three years is as follows: 2022-23 -- 62 million tonne, 2023-24 -- 64 million tonne, and 2024-25 -- 70 million tonne. The average cost of production of coal in CIL including its subsidiary companies is Rs 1,310.88 per tonne.