December 22, 2024

Coal Producers Association

CPA request for diversion of GAIL Gas Pipeline from Talcher Coal field Coal Mines

3 min read

A serious problem has come to the notice of CPA that in Talcher Coalfield GAIL has laid their Gas pipeline under Pradhan Mantri Urja Ganga Pipeline Project that connects Paradip to Bokaro. The Pipeline traverses over many major Coal blocks in Talcher Coalfield (Map shown below). The presence of GAIL Gas Pipeline is blocking some of the precious coal reserves(Table shown below). The successful bidders are facing major issues in preparing their Mine Plan, carry out mining as they must design the entire pit excluding the Gail Gas pipeline as all the Coal mines are of Opencast nature due to their shallowness and poor coal quality. Also during the preparation of Mine Plan by the Mining entities, they have to consider a safety zone of around 100 meters (50 Meters on either side) from the Pipeline.

Fig:- Map showing GAIL Gas pipeline over Talcher Coalfield.
Table:- Showing the length that GAIL Pipeline traverses and the value of the asset lost.

The association has brought this serious issue to the notice of the MoC that the Gas pipeline traverses through many Coal Mines like Chhendipada, Utkal-C and Utkal B1-B2 which have been successfully auctioned and obtained by our Members is becoming a very serious impediment in mine planning of these blocks and causing a loss of 660 Mil.tons of mineable coal. Utkal-C has even started producing coal as well. Out of the rest successfully auctioned Coal Mines, one will start production soon. In the upcoming 18th and 19th tranche many Coal Mines have come up for auction through which the pipeline is passing. The same has been mentioned in the above table.

As per our estimation the pipeline is travelling for a total distance of 32.7 KM over Talcher Coalfield blocking approximately 660 Million tonnes of valuable Coal reserve that could have been mined through Opencast mining. The value of the coal as per present NCI Index would be INR 1.38 Lakh Crores.

Our country energy source is majorly met through our coal reserves and blocking such huge quantity of reserve will impact our growth strategy. We understand that laying of Gas Pipeline will enable a lot of bottlenecks in the field of natural gas Industry, but the same is hindering the development of many Coal mines of our country and creating unnecessary bottlenecks in the coal Industry, particularly in the discussed coal field.

We have suggested to MoC that the presently laid pipeline may please be diverted along the Talcher Coal Field boundary which would need an investment of about 500 to 600 Crores for laying about 80-100 KM’s of Pipeline and 25% of the cost can be recovered by utilizing the presently laid pipeline. An investment of INR 500 to 600 Crores will unblock the valuable coal asset to the tune of 1.38 Lac Crores.

Considering the above, Coal Producer Association has requested to MoC that the GAIL Gas Pipeline should be diverted as it is hindering the development of some of major Coal Blocks, where Coal is the major energy source of our Nation and costing a huge 1.38 Lakh Crores to the Nation.

We will continue to pursue this matter with Ministry of Coal as this pipeline diversion is extremely important for the development of our blocks in Talcher Coalfields.

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