NEC Leads Coal Industry’s Growth in Northeast India, Focusing on Production, Sustainability

Guwahati: The coal industry remains a vital pillar of global energy production, particularly in developing nations, where it continues to fuel economic growth and industrial development. As the world seeks to balance energy security with sustainability, coal remains indispensable for many economies due to its high energy output and affordability. Coal is essential for power generation, and Northeast is one of the emerging contributors to the country's coal supply. 

Coal India unit North Eastern Coalfields (NECIL) are at the forefront of this sector, focusing on expanding production, modernizing infrastructure, improving efficiency, and mitigating environmental impacts. By embracing technologies like High Wall Mining, NEC simultaneously aims to reduce the ecological footprint of coal extraction while enhancing its operational capacity. Moreover, the industry’s role extends beyond mining, with a dedication to corporate social responsibility (CSR) initiatives driving healthcare, education, and community welfare. As demand for high-quality coal from Assam and other coal-bearing regions increases, the coal industry is poised to remain a significant player in meeting national and global energy needs while fostering sustainable development in local communities.

Business North East (BNE) conducted an exclusive interview with K Mere, General Manager, NEC to discuss the recent projects of North Eastern Coalfields. 

Here are the excerpts from the interview: 

BNE: What is NECIL's strategy for boosting production in the Assam coal mine and how much capital is being allocated to enhance production capabilities at the site?

We’re operating a mine with a capacity of 0.2 MTPA at Tikak Extension OC, and we’ve already applied for clearance to ramp up production to 0.3 MTPA. In addition, we’re in the final stages of a tender process to restart our second mine, Tirap OC. The tender is for a 9-year contract with a production capacity of 0.6 MTPA, and it will require an investment of around Rs 2,250 crore and is in the final stage.

BNE: How does NECIL’s increased production contribute to the country’s energy security goals? What is NECIL’s production target for the Assam coal mine in the next fiscal year?

NEC will contribute significantly towards energy security by producing 1.5 million tonnes of coal, alongside generating renewable energy to power the grid by 2030. For the next fiscal year, our coal target is 0.28 million tonnes.

BNE: What improvements are being made to the infrastructure, such as tracks and drains, to support efficient coal transport and processing at Tikak Colliery?

Over Rs 6 crore has been allocated for the revamping of railway tracks and platforms at Tikak and Tirap sidings. These projects are almost completed and will enhance our logistics capabilities. Additionally, we’re constructing CC roads for the coal transportation routes for Tirap OC, while the tendering process for Tikak OC’s roads is currently underway.

Tikak Colliery in Assam with coal stockpiles (Google image)

BNE: Are any new technologies being used to enhance production efficiency and reduce environmental impact in the Assam coal mine?

Currently, we’re studying the feasibility of introducing High Wall Mining Technology, an underground mining method. The benefit of this technology is that it could help reduce environmental impacts compared to traditional open-cast mining. 

A Highwall Mining Operation Site (Google Image)

BNE: What CSR initiatives is NECIL implementing to impact the communities affected by its mining activities?

 We take our Corporate Social Responsibility (CSR) initiatives very seriously. This year, we’re focusing on 'Health Care and Nutrition,' with significant investments aimed at improving the well-being of the communities around our operational areas. Additionally, NECIL is making strong investments in 'Education and Livelihood' projects and Environmental Sustainability. Our impact extends beyond the immediate areas of operation, benefiting communities across Assam, Mizoram, and Arunachal Pradesh.

BNE: What are NECIL's long-term expansion plans in the coal sector beyond the Assam mine?

Assam coal is known for its high calorific value—over 7000 kcal/kg—which makes it highly sought after. This quality allows it to fetch a premium price in the market. As a result, the demand always exceeds supply. Hence, we’re focused on enhancing production capacity to meet that demand. Currently, there are no immediate plans for expansion into other states. 

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BNE: How does NEC ensure it maintains its leadership position in the market and stays ahead of potential challenges?

Unfortunately, it’s challenging to get accurate statistics on actual coal production across the region, as there isn’t comprehensive data available. However, NEC remains the dominant player in the coal market here, and we are committed to retaining our leadership in the region going forward.

BNE: What steps is NEC taking to expand responsibly into other coal-bearing states?

As stated earlier NEC/CIL through active engagement and CSR initiatives aims to create a positive impact that resonates beyond our operations. However, as NEC is the only scientific agency actively exploiting coal reserves in the Northeast, there are certainly prospects for us to expand our operations into other coal-bearing states in the region.