CoalMin to Modi: Focus to be on rail links, green nods

The ministry has also noted the controversial proposal of opening up the coal sector and restructuring of CIL

The coal ministry wants to focus on the implementation of three critical rail links for evacuation, seek quicker environmental clearances and speed development of captive coal blocks. This it said in a presentation to Prime Minister Narendra Modi.

According to sources, the ministry said the proposal of opening the coal sector and restructuring state-owned miner Coal India Ltd (CIL) were its priorities. The demand-supply gap for coal is likely to reach 185 million tonnes (mt) by the end of the current Plan period in 2017, the ministry said.

Among things the ministry said should have happened differently were faster decision on lifting of Comprehensive Environment Pollution Index, that barred industrial activity in selected environment clusters under the United Progressive Alliance regime, and coordination between coal mining and commissioning of coal-based power capacity.

The ministry has informed the government of its major achievements over the past few years. These include simplification of royalty rates in May 2012 and the switchover to gross calorific value-based grading and pricing of coal apart from the initiation of auctioning for coal block allocation.

The ministry has listed many reasons for constrained domestic output: Pending environmental clearances, delays in land acquisition, slow resettlement and rehabilitation, pending court cases related to captive allocations and issues related to transfer of land and availability of explored blocks.

CIL has signed fuel supply agreements for projects of 78,000 Mw to be commissioned by March 2015. India produced 565-mt coal last financial year versus a target of 604 mt. The demand is likely to go up to 787 mt in the current financial year. The government expects 643 mt will be sold; 144 mt will have to be imported.