Coal news and updates

Government forms panel to recommend framework for PPP model for coal

A panel has been set up to recommend the framework for public private partnership (PPP) model for coal mine and a coal block is being taken as a pilot project under the scheme, according to interim Budget 2014-15.

"A Committee has been set up under the Chairmanship of Secretary (Coal) to recommend the framework for PPP within the Coal Mine Nationalisation Act, 1973," according to implementation of Budget announcements document.

"An explored green field coal mine in mahanadi coalfields is being taken as a pilot project under PPP. The model concession agreement has been prepared by Planning Commission for further discussions. Comments of various stakeholders, Departments and Ministries are being obtained taken to finalise the Agreement," it said.


Finance Minister P Chidambaram had stated in his last Budget speech that there was a need to devise such a policy on public-private framework with Coal India as one of its partners to reduce the country's increasing dependence on imported coal.


The measure, he had said, would lead to an increase in domestic coal output for supply to power producers and other consumers of fossil fuel.

CIL, which accounts for over 80 per cent of the domestic coal output, missed its production target last fiscal and produced only 452.5 million tonnes (MT) of coal in 2012-13 as against the target of 464 MT.

India's coal imports, which shot up to 145.8 MT in 2012-13, is pegged to reach 185 MT by FY'17.

Source: PTI