55 mt coal shortage by 2006-07

The gap between demand and availability of coal is projected to increase to 95 million in 2011-12.

Addressing the valedictory session at the MGMI international conference, Pradeep Kumar, additional secretary, ministry of coal and mines, said the deficit between demand and availability was projected to be 55 million tonne in 2006-07 and 95 million tonne in 2011-12.

Kumar said, "The gaps have to be made up either by increasing indigenous production capacity by allowing private sector investment and or by increasing imports of coal."

He added the government was exploring different options to mitigate the problem.

The government was also charting out measures to meet the requirement of less than 34 per cent ash coal. "Twin actions of setting up washeries through BOO operators by CIL and by private investors are on the agenda of the government," he said.

Apart from operating their own washeries government coal companies were also facilitating private investors in setting up washeries by providing assistance to the consumers or the BOO investors selected by the consumers in setting up of washeries by way of offering land, water, power, infrastructure.

Shashi Kumar, chairman Coal India said that 49 blocks were allotted for captive use but they did not produce enough. He emphasised that domestic production would have to increase.

"Most of the production has to come from existing coal producers but, the sector needs more projects" said Kumar. Coal India, being the largest producer of coal, would have to set a clearly defined vision to meet the challenge in fulfilling the country's coal demand.

"With the spurt in the price of coal in the international market, the need for mode domestic coal is being felt increasingly" he said.