In a first-ever exercise, the government will draw up mine- wise plans for Coal India to achieve its one-billion tonne production target by 2019.
Coal India has already finalised plans to achieve 925 million tonnes production. It is estimated the domestic coal demand would increase to 1.2 billion tonnes by 2019- 20. Besides ramping up production from Coal India, the government is also trying to fast-track bidding for blocks which have been de-allocated.
Coal secretary Anil Swarup said the methodology for bidding would be put up for Cabinet approval.Swarup, along with a senior Coal India executive, had an interactive session with the industry for enhancing production. He said the ministry of coal would also create a platform for monitoring clearances for all projects.
The apex court had termed the allocation of 204 mines since 1993 as arbitrary and illegal. Besides 42 blocks, which are already producing 90 million tonnes, and 32 blocks, which have a capacity of 130 million tonnes and have most of the clearances in place, Swarup said the coal ministry would auction or allot 18 more blocks. This would add another 100 MT of production.
Together, the 92 blocks are expected to produce 310 MT. “These (coal blocks) will be primarily for power sector because when we analysed the number of coal blocks to be put for auction, we discovered that sufficient number of coal blocks were not available for power sector,” Swarup said.
The Coal Bill passed in the Lok Sabha has modified the Coal Mining Nationalisation Act and Mines and Mineral Development & Regulation Act. The Bill has tightened the definition of a government company over what was spelt out in the ordinance.
A government company would not only be one which has 51 per cent equity; no single non- government entity would be allowed more than 26 per cent. “We are strengthening Coal India Limited,” said Coal Minister Piyush Goyal. He said the effort was to undo the damage caused during the previous UPA government when coal blocks were “given free”.The Minister said there are enough laws to protect their interest and the new law will give maximum benefits to the people displaced by coal mine projects. “I see Coal India production doubling in the next five years. It makes about 500 million tonnes hopefully this year. We’ll do a billion tonnes in 2019,” Mr. Goyal said. He said a “huge investment opportunity” of nearly $250 billion beckons in the energy sector over the next four to five years, including $100 billion in renewables and $50 billion in transmission and distribution. Emphasising that renewable sources of energy are one of the thrust areas of the government, he said his ministry was taking measures to ensure that solar power generation would touch 100 GW by 2019. “I see investments also coming into wind (energy) with the re-introduction of the fiscal benefits that were earlier available,” he said. “This government is sincere in giving power to all and this government will protect investments as we go forward,” the minister added.
Coal India has already finalised plans to achieve 925 million tonnes production. It is estimated the domestic coal demand would increase to 1.2 billion tonnes by 2019- 20. Besides ramping up production from Coal India, the government is also trying to fast-track bidding for blocks which have been de-allocated.
Coal secretary Anil Swarup said the methodology for bidding would be put up for Cabinet approval.Swarup, along with a senior Coal India executive, had an interactive session with the industry for enhancing production. He said the ministry of coal would also create a platform for monitoring clearances for all projects.
The apex court had termed the allocation of 204 mines since 1993 as arbitrary and illegal. Besides 42 blocks, which are already producing 90 million tonnes, and 32 blocks, which have a capacity of 130 million tonnes and have most of the clearances in place, Swarup said the coal ministry would auction or allot 18 more blocks. This would add another 100 MT of production.
Together, the 92 blocks are expected to produce 310 MT. “These (coal blocks) will be primarily for power sector because when we analysed the number of coal blocks to be put for auction, we discovered that sufficient number of coal blocks were not available for power sector,” Swarup said.
The Coal Bill passed in the Lok Sabha has modified the Coal Mining Nationalisation Act and Mines and Mineral Development & Regulation Act. The Bill has tightened the definition of a government company over what was spelt out in the ordinance.
A government company would not only be one which has 51 per cent equity; no single non- government entity would be allowed more than 26 per cent. “We are strengthening Coal India Limited,” said Coal Minister Piyush Goyal. He said the effort was to undo the damage caused during the previous UPA government when coal blocks were “given free”.The Minister said there are enough laws to protect their interest and the new law will give maximum benefits to the people displaced by coal mine projects. “I see Coal India production doubling in the next five years. It makes about 500 million tonnes hopefully this year. We’ll do a billion tonnes in 2019,” Mr. Goyal said. He said a “huge investment opportunity” of nearly $250 billion beckons in the energy sector over the next four to five years, including $100 billion in renewables and $50 billion in transmission and distribution. Emphasising that renewable sources of energy are one of the thrust areas of the government, he said his ministry was taking measures to ensure that solar power generation would touch 100 GW by 2019. “I see investments also coming into wind (energy) with the re-introduction of the fiscal benefits that were earlier available,” he said. “This government is sincere in giving power to all and this government will protect investments as we go forward,” the minister added.
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