Coal news and updates

Surplus coal usage formula by month-end: BK Chaturvedi

Days after Coal India rejected a proposal to act as a bank for surplus coal in the country, Planning Commission is hopeful about a solution to the impasse by end of this month. BK Chaturvedi, member of Planning Commission tells CNBC-TV18 that the committee on utilisation of surplus coal (which he he

ads) is working out a solution which would be acceptable to CIL and other stake holders. These recommendations can be implemented before the general elections, he adds. The committee is also considering directing excess coal owned by companies towards other projects of their own, he says. The surplus coal after these activities may be returned to CIL to be distributed to other sectors, Chaturvedi adds.

Currently, coal transactions are supervised under the Coal Nationalisation Act and coal is not allowed to be sold by private entities in the open market.

Meanwhile, Chaturvedi is positive on the improving scenario in power sector which, he says, has increased by 5-6 percent in August. Airport sector will also see a push from projects that have been awarded in Tier II cities. Ports sector investments have also seen a multi-fold growth, he adds.


Q: A marginal increase in coal’s output was announced in August and September by Coal India and the core sector indices. What is the progress in terms of the committee that you are heading- utilisation of surplus coal from captive mines?

A: We have had two meetings of the committee. There is a certain law under which the captive mine owners have been given blocks and under certain conditions. We have to look at feasibility under those conditions legally. Second, we are trying to see how we can work it out so the Coal India and the other stakeholders feel comfortable. Coal India feels worried at in case they make a commitment to returning their coal five years down the line and in view of the growing demand that they may default. They want to do it on the best effort basis which is really not acceptable to the committee. We are now trying to work out solutions. I am hopeful that by the end of this month, we will come out with our report and with some solutions of the problem.

Q: Coal block auctions have been spoken about as a policy move by the cabinet commission of economic affairs (CCEA). Will something dovetail into that as the auction would also depend on your committee’s decisions? What is the solution here?

A: As per as the auction is concerned, that is a different move altogether that is for allocation of new blocks. That as and when the blocks are auctioned, they are worked upon that will take quite some time, three years down the line. That is not an immediate solution.

Source:moneycontrol.com