The Centre’s push to convert all Coal India Ltd (CIL) mines as profit-making mines has resulted in the closure of underground mines across subsidiaries since underground operations are not cost-effective.
The government has opted for low-cost operation to keep margins at ease and except for Eastern Coalfields Ltd (ECL), underground coal production has witnessed a negative growth in all other subsidiaries. ECL has registered positive growth in production from underground mines for the seventh consecutive year, Niladri Roy, general manager, ECL, said.
He said of the 50.16 MT of ECL’s production, 20.5 MT came from two underground mines — Jhajra and Rajmahal. A CIL official on the condition of anonymity said these were the two operational underground mines left and the rest had been closed down in the plea of converting every coal mine a cost plus mine.
