"Ten years on, India will not need much of coal exploration"

CMPDI mulls diversification into other minerals
"Ten years on, India will not need
much of coal exploration"
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COVER STORY
M^ s 'King Coal' faces public disgrace at the Global Climate Summit,
Ml all eyes turn to India, the last market standing. The only sector
M ^krecording a healthy growth, coal in India presently holds out both
is a reason why people do not want to get
themselves deeply involved with coal any
hope and despair. Amidst an unprecedented growth in production, the
more.
Currently, crude oil prices are down
case for technology and innovation (to increase efficiency and reduce
to below $30 per barrel. Due to the
emissions) gets stronger by the day. And the role played by Central Mine
slackness in demand and competition from
Planning and Design Institute (CMPDI), the technology arm of Coal India
alternatives like shale gas, coal prices are
Ltd (CIL), becomes all the more crucial.
Shekhar Satan took over as chairman-cum-managing director of CMPDI
also down to a record level. There is no
at such a crucial juncture. An engineering graduate (and topper) from
is thinking to cut its taxes so that it can
demand for coal in Australia. Indonesia
the 1981 batch of the Department of Mining Engineering, Banaras Hindu
further bring down its cost of production.
University (BHU), Saran joined CMPDI, Ranchi, as Director (Technical) in
Almost all the countries are thinking
June 2013. His elevation to the coveted post of CMD comes with a mix of
something or other.
hopes and challenges.
In a candid interview with Rakesh Dubey and Arlndam
similar lines sometime in future. But, as
Bandyopadhyay of Coal Insights, Saran talks at length about how CMPDI
the situation stands today, we must plan
is planning a significant makeover to cater to the technology needs of
to leverage on our coal resources for the
We too may have to think along
the coal sector, especially in underground mining, while charting out a
next 10-15 years. This has to be done by
roadmap for diversification into so far uncharted territories.
both public sector and private sector. In
public sector, not only Coal India (CIL),
but others like NTPC, SAIL etc. too will
Excerpts:
environment. There is a declining trend in
production in erstwhile major producing
You have taken over at CMD, CMPDI, at
countries. Production is China is falling.
a very crucial juncture. On one hand, there
The US too is off the peak. Except India,
is a sudden rush in coal production; on the
I do not think there is any other country
other hand, there is mounting pressure from
which is growing at such a pace as far as coal
the climate summit. CMPDI being the tech
have to develop their blocks. NTPC is in
quite advanced stage of starting its mines.
Once they start contributing, there will be
additional availability of coal in the country
and I think it will be a good source of
energy.
arm of Coal India must be under pressure to
is concerned.
Of course, the situation is the same for
yield both on output and efficiency. Against
other infrastructure and core sectors which
this backdrop, how do you view at your new
are all on a decline. In India, coal is perhaps
role^
the only sector which is growing and it will
Actually, it is quite early to comment on
continue to grow over the next 5-10 years,
that. Till now I am trying to put my feet
simply because we as a country do not have
in my new shoes. I am still envisaging
any other option right now.
what will be the scope of work and the
If you see historical data, you will find
challenges. True, I have been involved
But all of us will have to put some
serious thought into the future. We do not
with CMPDI for some time now and
know what the energy scenario will be 10-
250,000 metres about 10 years ago. Right
that gives me some prior knowledge of
15 years hence.
from its inception in 1975 till 2005-06,
expectations are very high, not only from
Globally, shale gas is emerging as an
200,000 to 250,000 metres per year. When
my colleagues and the company, but also
alternative source, especially in the US, but
the demand for more coal blocks and
from the government. It has to be seen
also in countries like China. Do you think
detailed exploration came, the government
how much I will be able to live up to their
it was an outcome of the growing aversion
thought we should go for enhancement of
to coal?
exploration capacity.
Right now India has immense
multiple disciplines. However; exploratory
drilling occupies the centre stage of its
service portfolio. Please tell us about drilling
performance for 2015-16 and in future.
that CMPDI had been drilling about
the average yearly drilling was around
what to expect; but it is also a fact that
expectations.
CMPDI U aid to be one of it* kind of
organi^ation in coal industry handling
Yes, it is a very crucial development.
In the last couple of years, we have
done about 500,000-600,000 metres of
requirement of coal. There is no doubt
Shale gas and also some other alternative
about it. In our country, we still have a large
population which does not have power -
sources have come up in recent years
keeping up with the (investor) sentiment.
cheap power that is. This cheap energy can
Most of the people are not interested to
be provided only by coal.
invest in coal today. There is pressure
departmental means and the remaining
from the environmental groups and non
472,000 metres by outsourcing. Of the
coal is not being liked nowadays globally
governmental organisations (NGOs) which
outsourcing part, 278,000 metres were done
and is seen as a fuel source detrimental to
appear to have grown allergic to coal. That
byMECL.
That said, we must acknowledge that
drilling per annum. Then, in 2014-15, we
did something around 828,000 metres. Of
this, around 356,000 metres was done by
Coal Insights, January 2016 | 7
COYER STORY
We need only forestry clearance for
The coal ministry has laid down two norms: first, we should not
despatch more than 100 mm size of coal to power stations; and
second, coal with more than 34 percent ash content should not be
transported to a distance of more than 500 km. I have been told
that this distance criterion is again going to be revised and made
more stringent. So, we should be ready for a scenario where all the
coal that is despatched in future would be washed. We are working
towards that scenario.
exploratory drilling and not environmental
clearance as such. But we are not getting
the clearances in time. Currendy, there are
around 82 project applications pending with
the environment ministry. We are taking up
the issue with the ministry officials.
Let me tell you, there are some areas
where forestry issues are not there. We held
long brainstorming sessions to identify coal
bearing areas not under any dense forest
cover. We are particularly targeting those
areas. Out of 18,000 sq km coal bearing
areas, around 10,000 sq km is unexplored.
Leave 50 percent of that area; even then
that respect. The clearances are not coming
5,000 sq km remains which need to be
to achieve a growth of about 20 percent and
as fast as they were assured. This is what I
explored and which has no clearance issues.
reach 950,000 to 1,000,000 metres. Next
could gather.
There could be some CBM blocks or other
This year (2015-16), we are expecting
issues at some places. Accounting for those
year (2016-17), we will be going for more
detailed drilling and record a growth of
Are the clearance issues affecting CMPDI
factors, finally, we should at least get 1,000
10-15%.
as well?
sq km. Over the last two years, we carried
In that way, as we go on increasing
Yes, we do face some issues and because of
drilling, there will be more and more fully-
that we are not being able to achieve our
explored coal blocks available with CIL to
yearly drilling targets. This year, our target is
start production from.
1,500,000 metres, as set by the Ministry of
Coal (MoC). We are fine with these targets,
out this exercise and could identify those
areas.
What are the law and order challenges you
are facing?
How are your plans aligned with CIL's
but need to have access to the fields. Due to
The major challenge, apart from clearance
ambitious target of 1 billion tons of coal
clearance related issues, we are not getting
issues, is that of law and order problems
production by 2019-20?
permission for drilling in many forest blocks,
posed by ultra-left forces. There are
We have all the geological reports and
especially blocks having thick forest cover.
project reports ready. Our former CMD A
For whatever drilling we are doing today,
K Debnath was very particular about this.
the results will be visible after 4-5 years. This
As soon as the 1 billion tons of production
is so because after drilling, we will need to
instances where our machines were burnt,
contractors were thrown out and workers
were not allowed into the site.
But, the state government is helping
plan was announced, we were ready with
prepare geological reports. It requires a lot of
us a lot. We are having regular meetings
almost all the project reports. Only a few
testing and preparation, and so this process
with district commissioners (DC) and
project reports are still under preparation,
may take another 2-3 years. So, essentially,
other local agencies. They are also trying
but I think we will be completing those
whatever drilling we are doing today, the
to ensure that we get the space for drilling.
effective use of that will be done after 4-5
We recendy got permission in Gonda block
within this year.
Whatever assistance is required by CIL,
years. Apart from regular work, whenever
in Chhatra district where we could start
we are there to provide the same, and we
CIL subsidiaries ask for our involvement in
our drilling work with the assistance of
are equipped to do that. We have some
some projects, we will go for them.
the state government. The DC helped us
contingency plans and contingency project
What is your drilling target for 2020?
reports too. If a CIL subsidiary feels that it
We expect to achieve 1,500,000 metres of
may require some additional work from us,
drilling every year by that time. Again, this
we will work accordingly.
is subject to clearances for forestry issues and
I personally believe that this target
law and order situation. Currently, we are
of 1 billion tons is achievable. CIL is
facing some problems at our most potential
making good progress. The only problem
area, Dumka (Jharkhand), where we are not
the CIL subsidiaries are facing is that
being able to start drilling at all.
they were assured of faster clearances, i.e.
a lot by holding 10-12 meetings at Block
Development Officer (BDO) level to thrash
out local issues. This helped us to start
drilling work, which is going on for the last
two months.
Could you provide a comprehensive view
of how much coal bearing area has already
been explored and how much is yet to be
explored?
forestry clearances (FC) and environmental
What is the current scenario in
clearances (EC). So far as my knowledge
environmental and forestry approvals for
Statistically, we consider that our total coal
exploratory drilling?
bearing area is around 18,000 sq km. Out
goes, the subsidiaries are facing problems in
8 | Coal Insights, January 2016
COVER STORY
on it and will submit the paper to the state
and very fast drill. The mechanism is also
in detail and the balance area is yet to be
government who will make a comprehensive
very different. Mechanical drills are used
explored.
There, however, are some areas where
estimate and submit it to the Secretary
to do only mechanical work; they are not
(Coal) and from there it will be taken to
as smooth and easy as hydrostatic systems
only top three-four seams have been
Cabinet.
are. You might have seen that everywhere
of that, 7000-8000 sq km has been explored
explored in detail and the underlying
So, now we can say that there is going to
nowadays only hydrostatic drills are being
seams have not been explored so far. These
be very aggressive implementation ofJharia
used; even road rollers deployed these days
include North Karanpura in Jharkhand,
Action Plan.
operate on hydrostatic drive.
Raniganj and Jharia etc. This is so because,
We had been hearing about it for many
For geological exploration, we are
at that time, say around 25 years back, we
years, but this time the governments, both
having 2D seismic surveys. Last year,
were drilling only up to a depth of say 200-
central and state, look really serious; at least
we had additional 2D seismic survey
300 metres and the coal was still there at
this is what we could gather.
arrangement and again this year we are
going to have additional projects. Plus, we
500 metres or 1,000 metres level as well. So
that area is also left and has to be explored
What are the major R&D projects of
now.
In this regard, currendy we are focusing
CMPDI? Could you name a few projects
more on deep seated reserves of coking coal.
As the coal minister has rightly said, we
should aim more for coking coal deposits
keeping in mind the growth potential of the
Indian steel sector. So, in the Jharia region,
we have planned to explore further into the
depth as we have more coking coal deposits
in deeper seams.
How hopeful are you of finding out more
coking coal reserves in the country?
Let me tell you that we have substantial
coking coal deposits in Jharia. I think Jharia
coalfield has total deposits of around 30
billion tons of coking coal and the area
where it can be easily mined is having a
deposit of around 1 billion tons. But that
area is under fire and there are townships,
habitation, railways and highways. So,
around 1 billion tons of coking coal is lying
blocked in those areas.
As you know, there is a Jharia
Rehabilitation Master Plan in place to
preserve and make way for extraction of
are going to have some arrangement with
National Geophysical Research Institute
of Hyderabad which is doing 3D seismic
that are nearing completion?
We are pursuing different R&D projects
with different entities. Some projects are in
the field of underground mining and some
are in opencast mining. These projects are
mostly about technology upgradation and
surveys.
So these are some of the areas where we
are doing a lot of things. We are assisting
all our subsidiaries for underground mines
and providing them whatever assistance they
are being pursued along with CIL and its
seek from us.
We are also extending support and
various subsidiaries.
assistance for coal beneficiation, which
Technology upgradation is a very
is assuming great importance. The coal
important aspect as far as underground
ministry has laid down two norms: first, we
coal mining is concerned. We are experts
in opencast mining; all CIL subsidiaries
should not despatch more than 100 mm
size of coal to power stations; and second,
as well as private companies operating in
coal with more than 34 percent ash content
India are experts in opencast method, but
should not be transported to a distance of
we face serious challenges in underground
more than 500 km. I have been told that this
mining.
That is a critical issue and that is why we
distance criterion is again going to be revised
are going for high productivity equipment
ready for a scenario where all the coal that is
for exploration such as hydrostatic drills.
despatched in future would be washed. We
Previously we used to have only mechanical
are working towards that scenario.
drills, but now we are switching to
and made more stringent. So, we should be
Yet another major initiative/idea being
hydrostatic drills. I think 11 hydrostatic
taken by CMPDI is that of converting
drills have already been put to use.
mined opencast pits into large water
A hydrostatic drill is a very competent
reservoirs. This idea was floated by our
that coal. Coal secretary Anil Swamp
has recently visited Jharkhand and held
meetings with state government officials to
discuss the progress of that plan. He also
met with officials of Bharat Coking Coal
Ltd (BCCL) in Dhanbad. He has asked
them to submit proposals on additional
investment requirements for construction
and rehabilitation packages and said that he
would place the same before the Cabinet.
He also asked CMPDI and BCCL
about the quantity of coal that will be
available in the proposed rehabilitated area
to work out the economics. We are working
10 I Coal Insights. January 2016
Statistically, we consider that our
total coal bearing area is around
18,000 sq km. Out of that, 7000-
8000 sq km has been explored in
detail and the balance area is yet
to be explored.
COVER STORY
for example, we are drilling hole from the
former CMD A K Debnath. I personally
of these countries. The scenario that
am of the view that opencast reservoirs
Australia or the US or China has is entirely
surface, putting explosive and blasting so
could be very good instruments for water
different from what we have in India. They
that the whole area caves down. If this can
conservation. In places where there is water
are having hundreds of kilometres of open
be done, only then the longwall panel would
scarcity, these reservoirs can be a vital source
land. They do not have any land issues.
be successful.
for water.
Our coal companies, in contrast, do not
But, there is only a very limited number
have such luxury. There are a number of
of properties where we can have that kind of
200-300 metres depth would be of little use
residential properties, railway lines, roads,
luxury or comfort.
as there will not be any marine life. But let
villages etc. in our coal mine areas.
Some people may say a reservoir of say,
me assure that during my visit to Geneva,
We cannot plan for those types of mines
Another problem we face is the
heterogeneity of coal formation. Whatever
coal formation we have has its origin in
I was told the depth of the Geneva Lake
where we start the depillar operation and do
is just 300 metres. Actually, we are doing
continuous depillaring. That is one crucial
the drift theory. Our geological structure is
doubt that such reservoirs will help recharge
point.
Another point is that the geological
very complicated and difficult throughout
the water table, more than compensating
position is very different for our country.
Coalfield (ECL) area is entirely different
the ground water depletion due to mining
If you have gone through the history of
from that of say, Jharia or Maharashtra. So,
activity in an area. When the government is
coal mining, (you'll see that) we never had
the structure is very different technologically
talking about river interlinking, we should
a very successful long wall mining or long
promote this new source of water that the
cave-in operation since 1915 when Bengal
also.
Yet another handicap is that we could
Coal started mining in India. They were
not develop our own indigenous equipment.
a R&D study on this subject. There is no
mining sector can offer.
the country. The coal formation in Eastern
doing underground mining in a successful
Initially, MAMC and some other companies
Despite all the good work done by you,
manner in the UK, but in India, they were
were making underground equipment for us,
concerns are being raised about India's
only going for conventional board and
but those companies have closed operations
lack of technological advancement in the
pillar method and semi-mechanised mining
and we do not have any major indigenous
fields of mining, especially underground
because they also knew that this strata is not
equipment maker now. The requirements
mining, and energy. Questions are being
easily cave-able and so they had to go for
are different at different places and as such
asked about the role of indigenous research
alternative way of mining.
nothing much can be done according to a
is your take on this?
extent by induced blasting from surface
uniform plan.
These are the reasons why we could not
There are a lot of mining institutes who
where there is say, 100 metres or 50 metres
be successful in mass scale underground
have been doing a lot of research work in
of overburden. We have certain projects
mining. The only thing that we could do is
underground mining across the countries.
in South Eastern Coalfields Ltd (SECL)
deployment of continuous miners, which is
where we are using this method. In Jhanjhra,
an upgraded version of SDL of LSD mining
institutes like CMPDI and CIMFR. What
We have to see the geo-mining conditions
This problem could be solved to some
and is a faster method of production. That
is the only system which is successful right
now and is being adopted in a number of
mines.
The government has been talking about
increasing the use of mass production
technology like longwall for underground
mining. Do you think longwall mining is
viable in our country?
There are very few patches in India where
longwall mining could be successful. These
could be places like Moonidih and Jhanjhra
where longwall di-pillaring can be done on
a vast area of land. So I don't think we have
much scope for longwall mining as the geomining conditions are not suitable.
And this is not true only for Coal India.
You must have noticed that among all the
captive blocks allocated in last 20 years,
12 | Coal Insights, January 2016
COVER STORY
there are hardly one or two underground
blocks that have had started operations.
Actually, the block owners were mainly
interested in opencast projects. Even last
year, when 68 blocks were offered, all the
public sector companies got only opencast
mines. I don't think any of the underground
blocks, which were closed because of the
Supreme Court order, have commenced
production after re-allocation. There were
a couple of projects in Mand Raigarh, but
so far as my knowledge goes they have not
After 10-15 years, there may not be that much
requirement of coal in the country. So we are trying
to foray into other kinds of services. These are at the
planning stage now. Our minister has also suggested
that we should venture into iron ore exploration, other
minerals, limestone or these types of deposits.
started production to date.
Basically, underground mining in India
is a challenging task, more so because the
quality of coal is not that good. If someone
is investing so much money, he should
get the return as well. We are not getting
sufficient internal investment return (IIR)
for those projects and that is one of the
main reasons why we are not doing it.
which had identified those blocks for
ultra- super critical thermal power stations
end users. That committee had identified
of 800 MW capacity. BHEL and NTPC are
which block would be given to which end
working on the project. We had discussions
use sector. At that time, this question of
with one of their senior officials and he
commercial mining was not raised. They
said that they are working on such a high
had identified which blocks would be given
to power sector, steel sector or non-core
capacity power station.
So, basically our R&D focus has been on
sector. And there were some of the blocks
the use of inferior quality coal. Japan, on the
which they recommended for CIL. These
other hand, generally uses high quality coal.
not be viable and if they are not viable,
recommendations were given by that
Naturally, their technology will be more
there is no question of putting money on
committee, but I am not too sure about the
suitable for their type of plants.
them.
commercial mining part.
When coal secretary visited Jharkhand
companies like BHEL and NTPC are
These projects, on a standalone basis, will
For our country, the technology that
The government has planned to allot some
last time in December, he said to the
adopting, to my view, are more suitable for
mines to private sector for commercial
Chief Secretary of the state to come to
our conditions. This however is my personal
view on the matter.
mining, but the popular view is that
Coal Ministry and talk to D N Prasad to
commercial mining will be successful only
select a good block and go for commercial
if large projects are given. Can we say
mining. This was so because coal extracted
In recent past, the environment ministry
that the initiative to bring in mining on
from commercial blocks mined by state
had expressed doubts on CIL's data
commercial basis cannot be successful as far
governments will go to end users in micro,
on afforestation, which is something
as underground mining is concerned?
small and medium enterprises (MSME)
unprecedented. What caused this
For commercial mining, again, I think again
sector. The issue was raised because there
discrepancy between CIL's claims and
the target will be opencast projects. Initially,
was a complaint that CIL is not supplying
government's views on the former's
only opencast projects will be given because
coal to small consumers.
afforestation drive?
Japan has recently unveiled its High
I think the Ministry of Environment,
Forests and Climate Change (MoEFCC)
immediate return will come only from those
projects. I don't think there will be viability
Efficiency Low Emission (HELE)
was not sure if CMPDI or CIL has that
But these questions will arise only
technology for thermal power plants. This
much information or data to prove its claim.
after there is a final decision arrived at on
is something, experts say, will save the day
commercial mining. Let the government
for coal in future. Don't you think Indian
in underground projects now.
But we know that the concerned
department at CMPDI has been
allot such mines and then only anything can
energy research is grossly lacking in the
undertaking this exercise for pretty long a
be said.
areas of clean energy and energy efficiency?
period and has done a lot of work in last
I have a different view on this, so because if
It is learnt that the government has already
you compare the coal reserves of our country
4-5 years. Whatever presentations were
given were based on thorough studies and
identified a few big projects for commercial
with that of other countries, you will notice
data. Our people compiled data sourced
mining. What was CMPDI's involvement
that we have huge resources, but of very
from each CIL subsidiary and used remote
in the process?
inferior quality. That is why NTPC Ltd
sensing tools to check the veracity of the
This exercise must have been undertaken
has gone for super critical thermal power
information. However, when they gave
by Ministry of Coal as they have a list of
stations and ultra-super critical thermal
presentation to the ministry, the latter did
all 204 blocks. There was a committee
power stations. Now, they are planning for
not believe it.
14 | Coal Insights, January 2016
COVER STORY
is quite different now. We did not get
heavy equipment for CIL?The committee
National Remote Sensing Agency (NRSA),
sufficient number of bids last time and the
had reportedly submitted its views but
Hyderabad, and told them what our system
pressure of work on CMPDI is much less
nothing was heard after that.
is and how we have prepared this report.
than what we had last year.
This matter was discussed at a meeting
So, we got it confirmed through
When NRSA gave in writing that whatever
One of the reasons for this lukewarm
at CIL recently, where I was present as a
we have claimed is correct, we went back to
response could be the low prices of coal
MoEFCC and presented our views along
in the international markets. Coal is
the committee formed for the purpose have
with the recommendation of NRSA. Then
easily available offshore and they are a lot
changed.
only they agreed.
cheaper now. This has not only affected
A report has been submitted and has
the response from potential bidders but
been circulated to the concerned authorities.
CMPDI on December 31,2015. He
may also have dented the enthusiasm
Presently, comments of the concerned
suggested that we should come up with
of block allottees. So far, out of 68
department are being awaited. Let us see
some app or internet based display system
captive blocks allotted, only about 9 have
what happens. The call is to be taken by
where we can upload all information
resumed production, whereas 42 blocks
Coal India.
regarding the plantation work being done
were under production last year. There
Recendy, the coal minister visited
member. Actually, a number of members of
by CIL, technical reclamation, biological
is lack of enthusiasm as cheap coal is
CMPDI has done some exemplary work on
reclamation, mining (done out of that area),
available. Also, there are a lot clearance
land acquisition at Mahanadi Coalfields Ltd
etc. This information can be uploaded on a
issues in different states which could be
(MCL). Could you elaborate the success of
daily basis.
delaying production.
that project? Are you going to replicate the
Now, that responsibility has been given
same in other CIL subsidiaries?
to CIL and we are working on it. Hopefully,
What could be the remedial steps for
we will soon come out with some system
restarting production from already
that will make such information available
operating captive blocks?
to general public. This will be a good
The central and state governments wall have
initiative and bring further transparency
to take a call on this. There are some cases
PAP would go up invariably as construction
into the working of CIL. We are presently
pending before the Supreme Court as well.
work started at a particular site. So, MCL
Actually, this issue was put up before
CMPDI by MCL, which was shelling out
a lot of compensation to project affected
persons (PAP). But then, the number of
discussing how to implement the same. We
I think the main hurdles are transfer of land
requested CMPDI to suggest ways to record
want each and every project to upload its
and other state related issues which could
the exact number of people getting affected.
imagery from its end, so that everybody can
not be sorted out till now.
Subsequendy, CMPDI approached NRSA
see it.
.That said, I must convey that CIL is
Don't you think clubbing captive
region for a particular period of time.
not involved in any false reporting. This is a
consumption and commercial sale of surplus
Imageries were taken for a starting date and
basic principle on which we work. Whatever
production would make a win-win situation
the cut-off date to see if there has been any
work we do, we report only the hard facts.
for government and private miners?
change in the pattern of land use in those
CIL is always under scrutiny. It is a listed
The Coal Mines (Special Provisions) Act
company (CIL) and whatever information
states that whatever extra production captive
areas.
Actually, it happens like this. Once an
our shareholders need we have to supply the
blocks may be having, they can sell it to
area is notified for mining, families residing
same.
Coal India and Coal India will take only
there start erecting new structures and
service charges and I don't think it will earn
dividing their families into smaller units,
After the initial rounds of e-auction of
blocks, it appears that the government has
for high resolution imagery of the concerned
profit out of that coal.
Thus, there is already provision for
so as to claim maximum compensation
possible.
slowed down because they did not receive
bringing the additional production from
good response from bidders. Do you think
captive blocks to the market. However,
the Supreme Court and the court
there is need to restructure the auction
things turned otherwise in some cases
accepted our stand on compensation and
model to make it more industry friendly?
encountered before de-allocation. It
maintained that from that day (cut-off day)
This is government's prerogative. And I am
was reported that some of the operating
onwards, the encroachers should not be
not aware about what is happening in MOC
blocks were producing surplus coal but not
compensated.
at this moment. So, I don't think I will be
bringing it to CIL. They were not even
able to comment on what the government's
reporting the same; instead were selling that
and NCL to replicate this process in regions
strategy is. However, it is a fact that we did
coal in grey market.
under their command areas. Now that we
Now, our report was put up before
Later on, we were requested by ECL
have successfully done it for MCL, we
not get that much enthusiasm or response
from bidders as we got in the first and
What happened to the government's effort
are ready to help out any company that
second tranche of bidding. The scenario
to revise the tendering process to procure
approaches us for this purpose.
16 | Coal Insights, January 2016
COVER STORY
Earlier, around 2007-08, we had
Please tell us about the status of land
Is there any rethinking about coal-to-
digitisation initiative of CMPDI.
prepared some documents on how we
liquid (CTL) projects which were shelved
This is an ongoing project and we are still
should go for UCG projects. I think a
sometime ago?
working on it. We have done some work at
tendering was held and some interests
There is an economic consideration attached
Central Coalfields Ltd (CCL), but the project
were received, but after that, there was no
to CTL projects. Today, imported oil prices
a comprehensive project on the request of
progress.
UCG is a more eco-friendly source than
have come down substantially. I am not sure
Coal India which wants to put information
coal. In fact, coal bed methane (CBM), coal
oil prices. If people are not ready to invest in
of all its subsidiaries on a single platform. It is
mine methane (CMM), coal seam gas all are
coal blocks, who will go for investing on the
basically at the discussion stage and we are yet
cleaner energy sources.
elaborate infrastructure required for CTL
was not completed. Now, we are working on
As for viability, I will not rule out UCG
to decide on the exact model, scope of work,
extent of CMPDI's involvement, etc.
What we want to make clear is that
(saying) that it will not work in India. At
if CTL projects are viable at present level of
projects? Let us wait for another 4-5 years
and see...!
the same time, we need to create proper
CMPDI may maintain the system, but
infrastructure to tap this source. As far as
Why can't CMPDI be party to joint
should not be given the task to maintain and
reserves are concerned, I think they were
international projects in the energy sector?
update the entire databank. This data has to
established when the documents were
come from individual projects and should be
prepared last time.
Basically, these deposits should be
uploaded by the individual subsidiaries. We
would like to restrict our role to maintaining
isolated properties, not minable, not of any
the platform and processing the database
commercial use by any public or private
only.
sector entities and must not pose any
There are certain things that CMPDI
danger to human habitation. For UCG,
will not be able to do, which includes
a major concern is that of groundwater
online data collection, data uploading and
contamination.
So, adequate hydrological studies need
data monitoring. We cannot pursue each
and every project to send their data. It has
to be carried out. There should not be any
to come voluntarily and monitored at the
water table or ground water source in that
subsidiary level.
Overall, this is a huge exercise and I
don't want to fix any deadline right now.
area. Reserves that qualify for these safety
criteria may be used for UCG projects. The
gas we get from UCG is very useful for
power, fertilizers and other projects.
Recently, the government has come out
There are some countries where UCG is
with a draft policy on underground coal
being used as a fuel source. In India, getting
gasification (UCG). Do you see any
environmental clearance for such projects
potential for UCG in India?
will be a major challenge. Let us see...if the
We are yet to receive the policy; so cannot
really comment on it.
government is serious about it, they must
find out ways.
We are working in tandem with a number
of leading research institutes of the
country. As I said, we are working with the
national remote sensing organisations. For
environmental monitoring, we get satellite
data from remote sensing. We are also
working with Forest Research Institute,
Dehra Dun, and with Geological Survey of
India (GSI), etc. We are taking help of all
these organisations.
Currently, our project requirements
are successfully met with from these
collaborations. When we will have larger
scale requirement, we may surely think in
that direction.
How do you view CMPDI's role in India's
energy matrix ten years down the line?
After 10-15 years, there may not be that
much requirement of coal in the country.
So we are trying to foray into other kinds
of sendees. These are at the planning stage
now. Our minister has also suggested that we
Jharia coalfield has total deposits
of around 30 billion tons of coking
should venture into iron ore exploration, other
coal and the area where it can be
near future, coal exploration services may
easily mined is having a deposit
of around 1 billion tons. But that
area is under fire and there are
townships, habitation, railways and
highways. So, around 1 billion tons
of coking coal is lying blocked in
those areas.
minerals, limestone or these types of deposits.
This is a good suggestion, because in
not be required at a large scale. This is so
because coal lying below 500 metres may
not be economically viable for mining. So,
CMPDI may not be having much of work
to do after ten years if we remain engaged
in coal exploration only. So, we have to
diversify. CBM, UCG, shale gas, exploration
of minerals other than coal could be potential
areas of diversification for us. Also, we can
work in solar power by forming joint ventures/
subsidiaries with other companies. •
18 | Coal Insights, January 2016