Just a day after government set up a three-member panel headed by Planning Commission Member B K Chaturvedi to look into issues related to utilization of surplus coal from captive blocks, Coal Ministry has prepared a draft policy on utilization of surplus coal from captive mines and have circulated the same to the ministries for comments. Further, in a bid to produce more coal in the backdrop of its shortage in the country, Power Ministry has suggested the Coal Ministry for incentivizing surplus coal production from captive mines.
The three-member panel formed by the government, which will look into implications, legal issues and mechanisms with regard to usage of surplus coal from captive mines, will submit its report only in next two weeks.
Domestic coal demand was at 772.84 million tonnes (MT) against production of 557.60 MT in the last fiscal. This gap is met by import of coal from countries such as Indonesia, South Africa and Australia. Meanwhile, Coal India, the world’s largest coal miner by output has reported production of 32.57 million tonnes in June 2013, as against target of 35.23 million tonnes.
In a separate development, Coal Ministry has allocated 14 coal blocks with reserves exceeding 8,311 million tonne (mt) to power sector companies under the new Competitive Bidding of Coal Mines Rules notified in 2012. The 14 blocks, which have a production potential of 159 mt per annum, can fire up to 31,800 Megawatt (Mw) of power generation capacity.
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