Suresh Prabhu-led panel bats for coal, power sector reforms

Removal of transmission constraints through short- and long-term actions

An advisory group headed by railway minister Suresh Prabhu has made a strong case for opening the coal sector to supplement production by Coal India.

The advisory group, set up on 25 June  by the Bharatiya Janata Party-led government at the Centre, has suggested steps to enhance coal production in the short, medium and long terms, as well as improvements needed in Coal India.

The group submitted its report on Monday.

To ensure round-the-clock power supply, the group has pressed for reform of electricity distribution, including privatisation and public-private partnerships, separation of carriage and content in distribution licences, and an enhanced role for and improvements in the working of the Central Electricity Authority.

It suggested transmission constraints be removed through short- and long-term actions and sought a greater push for adding thermal power capacity.

R V Shahi, former Union power secretary and convener of the group, told Business Standard, “The advisory group has emphasised the need for urgent action on coal linkages to power plants already commissioned and likely to be commissioned by March 2015, development of railway infrastructure from coal mines to the main railway system through various options, including a joint venture company on infrastructure by Coal India.”

He said the advisory group had suggested amendments to the Electricity Act, 2003, Tariff Policy and Standing Bidding Documents, and advanced action for coal linkages for projects in the 13th five-year Plan.

Moreover, the group has recommended phasing out old and inefficient thermal power plants that burn excessive fuel.

It has argued new coal-based power plants should be obliged to set up a renewable energy generation station as specified by the government.

Further, the group has emphasised the need for strengthening penalties to improve quality of service and grid discipline, establishing regional regulators in consultation with states and a mechanism to review of the performance of regulatory commissions through a forum of regulators.