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Block de-allocation to worsen coal supply: Parakh

10 Mar 2014

March 10: The current spate of coal block de-allocation by the government would further worsen the coal supply situation, leading to increased imports of the material, former coal secretary P C Parakh said.

Terming the exercise as "counter-productive," Parakh said, "It will worsen the crisis of coal availability in the country."

"The Inter-Ministerial Committee (IMC) has been making recommendations for de-allocation, without examining as to who is responsible for the delay. In my view, instead of recommending de-allocation, the IMC should become a facilitator and co-ordinate with regulatory agencies for faster statuary clearances, so that production starts without further loss of time," Parakh told Coal Insights, a sister publication of ICMW.

De-allocation will only lead to unnecessary litigation and further delay in production of coal, he added.