It has been agreed that MSEB will pay a negotiated or especially notified price for these projects. Besides, there is also a proposal for captive mine/block for MSEB for power generation as a result of which the state government and WCL have been advised for expediting the opening of new mines by WCL for MSEB on a negotiated price basis.

For WCL, in addition to Adasa Underground and Kolgaon Opencast, three new projects have been offered to MSEB for supply of coal on a negotiated price basis. These are Kamptee UG to OC, Gatrohan OC and Bhatandi Expn OC.

Besides, 26 projects have been identified to be opened during the Ninth plan in theentire WCL area of which 19 are located in Maharashtra. As most of these are non-viable, agreements are on with other parties to arrive at a negotiated price.

The committee has inferred that coal production of WCL which is at present 22.81 million tonne will deplete to 4.04 million tonne by 2027. However, MSEB's requirement of coal for the existing power stations and proposed power stations will go up from 25.1 million tonne to 47.44 million tonne in 2027.

However, WCL's grievance is that they are not getting financial support for opening new mines from CIL as well as the centre due to higher cost of production of coal as against its administered price. Many such coal blocks in their possession cannot be developed unless the user accepts the purchase of coal on negotiated price basis which would ensure a 18 per cent IRR to WCL.

In a recent review meeting of the committee members, it was observed that unless the mines are opened on a negotiated price during the Ninth and Tenth Plan and beyond and theexisting opencast mines are deepened, the steep fall in production cannot be arrested. The subject was also reviewed considering production from the projects proposed to be opened on remunerative price during the ninth, tenth and beyond and from deepening of opencast mines. It was also observed that leaving aside that mines needing deepening, mines needed to be exploited, presuming import of coal from Madhya Pradesh, Orissa and Andhra Pradesh at the present level of 11 million tonnes. This would mean a shortage of 2.1 million tonnes will be felt vis-a-vis MSEB's requirement in 1998.

As per WCL, 13 units of coal blocks have been identified for captive mining. Of these, five are in Madhya Pradesh and the balance in Maharashtra. Four of the total in Maharashtra have been allotted by screening committee to private parties thus leaving the balance for captive mining. MSEB may therefore request the apex court for reserving these blocks for captive mining.

Considering the likely shortfall in meeting MSEB'srequirement, no further blocks in future should be allotted for captive mining other than MSEB. Again as per the WCL programme, no additional production is expected from mines planned in the ninth plan. Similarly, no production is expected from mines scheduled to be opened in the tenth plan (the year 2005).

Further, the mines planned in the period beyond the tenth plan production will start after 2011-12.

Presently, MSEB gets around 68 per cent of WCL's production in Maharashtra. Since production is not going to increase up to 2002, there is no alternative but to enhance MSEB's share in WCL to approximately 75 per cent.