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Govt constitutes panel to draft PPP framework to increase coal output

20 Mar 2013 Evaluate

The government has set up a panel to formulate a policy on public-private partnership framework with state-owned - Coal India (CIL) to increase the country’s coal output. The nine-member committee chaired by Coal Secretary S K Srivastava has representatives from the various departments including finance, law and justice ministries.

Earlier, Finance Minster, in his Budget speech has stated the need to devise a PPP policy framework to reduce the country’s increasing dependence on imported coal in the medium to long-term. India imported 112.8 million tonnes of thermal and coking coal between April-January period of FY13, up 29 percent from a year earlier, as domestic supply fell short of surging demand in Asia's third-largest economy.

CIL, which accounts for over 80 per cent of the domestic coal output, missed its production target last fiscal and produced only 435.84 million tonne (MT) against the revised target of 447 MT for various reasons, including delays in obtaining environment and forestry approvals for new mines.

However, in India coal supply has failed to keep pace with capacity growth in the power sector in India, where energy output falls far short of the demand of a fast-growing economy and an increasingly affluent population.

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