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Indian Youth Congress writes to SECL CMD on coal crisis of Chhattisgarh

Indian Youth Congress writes to SECL CMD on coal crisis of Chhattisgarh

Congress Party will be forced to launch an agitation, with SECL management bearing sole responsibility.

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Bilaspur:Indian Youth Congress (IYC) has written to the CMD, South Eastern Coalfield Limited (SECL), Bilaspur, Chhattisgarh in the context of adverse economical and social effects faced by the people and industries situated in Chhattisgarh due to supplying coal outside the state by Southeastern Coalfield Limited, a subsidiary company of Coal India Limited.

SECL is the largest subsidiary company of Coal India Limited which produces approximately 165 million ton of Coal every year. The coal produced by SECL is supplied to the industries situated in Chhattisgarh and neighboring states. However due to the ineffectiveness of the SECL management, a continuous reduction in the supply of black diamond (coal) to the industries located in the state has been observed, which depicts that SECL and CIL are arbitrarily ignoring the interest and development of the state.


Out of the total coal reserve across country, Chhattisgarh accounts for 18% which is roughly 56 billion ton of coal reserve available in the country. Every year, 30 million tons of coal arerequired for the smooth functioning of more than 245 captive power plants, accounting for only 19 percent of SECL’s total coal production. SECL’s current production target is 165 million tons, or 25% of total coal produced in the country, of which only 40% is provided to industries operating in the state of Chhattisgarh and the remaining 60% is exported to other states, which is an injustice to the people and industries of Chhattisgarh.

According to the reports of CEA (Central electrical authority), the coal reserve available in the IPP (Independent power plant) is 18 days for TPS Bhillai, 22 days for NTPC Seepat, 14 days for Akaltara TPS, 13 days for MadwaPower Plant, 24 days for DSPM and 6.5 days for Korba West Power Plant. However, the CPP based power plant have only 1 day of coal reserve. Even after this, there has been reduction in the supply of coal to Captive power plant.

In the district of Korba, the Gevra and Kusmunda mines of SECL has stopped the supply of coal to CPP based non-power sector plant which requires around 26 lakh ton of coal. As per the agreement of SECL with non-power sector, it is mandated to supply 65 million ton of coal annually. As per this calculation, the SECL is supposed to provide 50 lakh tonne of coal per month through auction against which only 30 lakh ton has been provided. 

Given the data above, it appears that despite having significant coal reserves, the industries are being purposely ignored by not delivering enough coal, resulting in job losses for those employed in this industry. This has a direct impact on the state’s and country’s development. The ruthless management of SECL demonstrates a deplorable arbitrary and fanatical attitude toward the people and industries of the state.

Hence the SECL management is requested to respect the long term Fuel Sale Agreement (FSA) with various industries and supply coal to these industries along with renewing the FSA which is currently kept on hold.

Currently, SECL’s irresponsible and uninformed behavior is generating significant losses to industries, transportation employees, and others engaged directly or indirectly in the coal industry. If this serious issue is not addressed, thousands of individuals employed in these industries would become homeless and jobless.

As a result, we respectfully request that you treat this matter with the utmost seriousness and take the necessary steps to provide coal to the Captive Power Plant of Chhattisgarh as required, or else the Yuva

Congress Party will be forced to launch an agitation, with SECL management bearing sole responsibility.

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