Union Minister launches BEML-midwest joint venture

Hyderabad, May 24 (UNI) Union Minister of State for Coal Dasari Narayana Rao today said the UPA Government was according top priority to ensure energy security for the country.

Launching Bharat Earth Movers LTD (BEML)-Midwest, a joint venture between BEML and Midwest Granite Private LTD with P T Sumber Mitra Jaya of Indonesia as partners to expand mining activities, he said the energy co-ordination committee was regularly reviewing the scenario regarding generation of power, production of coal, oil and natural gas.

He said the government was taking measures for harnessing coal reserves of the country to meet the growing energy needs.

Mr Rao said with the national economy steadily recording over eight per cent growth rate and poised to sustain even nine per cent growth rate, the demand for coal was bound to increase substantially.

He said from a demand level of 470 million tonnes during 2006-07, it was estimated to increase to 730 million tonnes by 2011-12 and to about 2,000 million tonnes per year by 2032.

During 2006-07, Coal India LTD had produced 363 million tonnes of coal while contribution of Singareni Collieries was about 37 million tonnes.

The Union Minister said the government had taken measures to diversify coal production base beyond the domain of Coal India and Singareni as the public sector coal companies might not be in a position to meet the growing spurt in coal demand.

From five coal producers at the time of nationalisation during 1971-73 it had risen to 169 new potential coal producers. This had been made possible with allocation of blocks to public and private sector companies under the two available windows of mining by government companies and captive mining.

He said the government had identified a total of 229 coal blocks for allocation to public and private sector companies engaged in generation of power and production of steel and cement for captive mining, and to central and state government companies for commercial mining.

The government had so far allotted 130 blocks with total coal reserves of more than 27 billion tonnes to 169 companies which had a potential to produce 300 million tonnes of coal per year. During the last three years, 84 blocks were allotted for captive mining, which was introduced in 1993. The government was in a position to allot another 81 blocks with total coal reserves of more than 20 billion tonnes.

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