Policy on surplus coal likely in a month: Planning Commission

The government is working on the modalities at present, says B K Chaturvedi

The government may come out with a policy on the surplus coal in a month's time, Planning Commission today said.
    
"Our response on the proposed coal banking and surplus coal policy will be out in a month," Planning Commission (Member) B K Chaturvedi told reporters here, adding that the government is working on the modalities at present.
    
"We are working on whether coal banking is feasible under the law or this can be used by us for the benefit of the entire economy," he said, adding that the plan panel is working on the arrangement and is considering various options.

    

When asked if coal swapping as one of the options is under consideration, he said: "We are discussing that option also."
    
Under coal swapping, the private power companies will be allowed to use excess coal from captive mines, allocated to the company for one of its project, for another.
     
Last month, Tata Power, in a letter to Chaturvedi, had asked the government to allow them to divert surplus coal from one plant to another.
     
Tata Power has sought diversion of surplus coal from its Mandakini captive mine in Odisha to the 1,050 MW Maithon project in Jharkhand, which it operates in partnership with Damodar Valley Corporation.

    
"Tata Power's proposal will also be part of the discussion, we will consider that," Chaturvedi said responding to a query on the Tata Power matter.
    
The Association of Power Producers (APP) had said earlier this week that private power companies have agreed to return coal mined from captive blocks to Coal India Ltd if the end-use plant is delayed.
    
APP is an organisation representing as many as 20 private power companies.