State-owned NLC India Limited (NLCIL) failed to meet its lignite production target for FY 2023-24 due to prolonged delays in land acquisition, a Parliamentary Standing Committee on Coal, Mines, and Steel stated in its report tabled in Parliament on Wednesday.
According to the report, while three coal-producing PSUs, including Coal India Ltd (CIL), collectively produced 856.47 million tonnes (MT) of coal against a target of 862 MT, NLC India fell short, achieving only 83.36% of its lignite target.
Land Acquisition Challenges Hampering Production
NLC India was expected to produce 26.5 MT of lignite in FY24 but managed only 23.68 MT due to land-related hurdles. The report stressed that such bottlenecks must be addressed urgently to improve performance and ensure uninterrupted coal and lignite supply.
CIL Leads in Productivity with Modern Technology
The committee highlighted that Coal India Ltd. (CIL) remains the most efficient coal mining PSU, thanks to the adoption of modern technology and optimized operational strategies.
“The committee commends the efforts of the three coal PSUs in contributing to India’s energy security but recommends that challenges faced by NLCIL and SCCL be resolved at the earliest,” the report added.
About NLC India
NLC India Limited is an integrated mining and power company operating opencast lignite mines linked to thermal power stations. The company’s performance is crucial for ensuring a steady lignite supply to power plants, making land acquisition a key factor in its production targets.
The government is expected to take the necessary steps to streamline land acquisition processes to prevent further production setbacks in the coming fiscal years.
