State owned Coal India Ltd is set to lose production of 40,000 tonnes of coal a day, following an order from the Jharkhand government to close 22 mines operated by its subsidiary, Bharat Coking Coal Ltd.

The Jharkhand State Pollution Control Board passed the order on Wednesday, alleging BCCL of running these mines without proper environmental clearances.

CIL produces 431 million tonnes of coal annually, accounting for a little more than 80% of India’s coal production. BCCL accounts for 7% of CIL’s production capacity of 461 million tonnes. The Jharkhand government’s order covers 22 of the 80 mines operated by BCCL.

Denying any “major” impact on production, CIL said it was yet to get the closure order. Mr NC Jha chairman of CIL said that “No mines have been closed so far. There is not likely to be a major impact on production.”

He added that “In the worst case, if the Jharkhand government insists, production to the tune of 40,000 tonnes produced from these 22 mines will be lost daily. This translates to 12 million tonnes annually.”

Meanwhile, a top BCCL official said the firm had approached the Jharkhand high court, seeking relief. Mr PP Gupta GM environment BCCL said that “The order has not affected the production for now. These mines are still under operation.”

(Sourced from BS)