Opening up of the coal sector and upgradation of state-run Coal India and its subsidiaries are vital for scaling up domestic production of the dry fuel, says a report submitted to the government on Monday.
The final report of the Advisory Group for Integrated Development of Power, Coal, and Renewable Energy for suggesting measures for enhancement of coal production in the short, medium and long-term was presented to Power and Coal Minister Piyush Goyal.
The group, headed by Suresh Prabhu (now Union Minister for Railways), has called for certain improvements in Coal India and its subsidiaries, including Central Mine Planning and Design Institute Limited (CMPDI).
The Advisory Group’s report has emphasised on the need for opening up the coal sector to supplement the domestic production of Coal India and a few other companies.
It touched upon the issues of coal block auction process, coal linkage rationalisation and swapping of coal linkages and stressed on the need for urgent action on coal linkages to power plants already commissioned, and likely to be commissioned by March, 2015.
Various options should be explored to develop railway infrastructure from coal mines to main railway system, including through a joint venture company on infrastructure by Coal India, it said.
The report also called for expediting reforms in the distribution sector with targeted actions, including privatisation or PPP (public private partnership) in distribution.
There is also a need for enhanced role of and improvements in working of CEA (Central Electricity Authority), amendments to the Electricity Act, tariff policy and standard bidding documents, the report said.
Among various other suggestions, the group said the transmission constraints needed to be addressed.
The Advisory Group was set up by the government on June 25.
The group chaired by Mr. Prabhu, consists of R. V. Shahi (former Power Secretary), Pratyush Sinha (former Chief Vigilance Commissioner), Anil Baijal (former Home Secretary), Partho Bhattacharya (former CMD of Coal India), among others, as members. The government has already announced plans to augment Coal India’s production to an annual one billion tonnes by 2019.
Coal India accounts for about 80 per cent of total coal production.
