 "SAIL seeks change in thermal coal mine allocation rule")
New Delhi: Anticipating its captive power needs to nearly double in two-three years, SAIL wants existing rules for thermal coal block allocation to be amended so as to make government firms without power purchase agreements eligible.
The country’s largest steel maker now requires around 1,000 MW power to fire its five integrated steel plants. This will go up to 1,850 MW in the next two-three years with the ongoing Rs 70,000 crore modernisation and expansion programme.[caption id=“attachment_1238717” align=“alignleft” width=“380”]  Seeking change. Getty Images[/caption]
Already saddled with 75 percent imports of its coking coal needs, SAIL has flagged the issue to steel ministry for soliciting coal ministry for allotment of thermal coal mine to the state-run steel maker.
“Intervention of Ministry of Steel is requested for amending in Rule 12 of part-II of Gazette Notification dated December 27, 2012 of Ministry of Coal on auction of coal by competitive bidding,” SAIL said.
As per the existing policy, there is no provision for thermal coal allocation for government companies for their captive power plants.
The current policy only allows thermal coal blocks to be allocated for government companies having power purchase agreements with the state utilities prior to 5 January 2011.
“With the increase in the hot metal capacity with the investment of more than Rs 70,000 crore, the power requirement of SAIL is expected to increase to 1,850 MW from the present level of about 1,000 MW in the next two-three years,” the public sector said.
SAIL currently has around 14 million tonnes per annum hot metal producing capacity. This will go up to 24 mtpa by the end of next calendar year with the completion of the ongoing expansion.
“The help of the Ministry of Steel is required for taking up the matter with Ministry of Coal for allotment of thermal coal blocks in favour of SAIL being the leading steel maker in the country,” SAIL said.
PTI
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