Centre asks states to curb coal profiteering amid West Asia crisis

The Centre has directed states to prevent small coal retailers from profiteering from the West Asia crisis, as global energy disruptions threaten to ripple into domestic fuel markets.

Talking with reporters on the sidelines of an event here, Coal and Mines Minister G Kishan Reddy said, "Our secretary (coal) has talked to Chief Secretaries of all states. I have written letters to Chief Ministers yesterday. There is no coal shortage and there is no scope for an increase in domestic coal prices".

The minister further said that if coal prices increase, it is the responsibility of the state governments to take action.

 

"We have asked states to keep an eye on coal prices and not let the retailers of coal profit from the ongoing crisis..

The Prime Minister has clearly instructed that coal prices should not increase, and therefore the government has taken proactive measures.

"No decision has been taken on increasing coal prices. Coal prices should not increase," the minister explained.

The minister also said that there is no shortage of coal in the country and that sufficient dry fuel is available to meet demand.

"We are producing more coal than the current demand," Reddy said.

For the second year in a row, the country has produced one billion tonnes of coal, the minister said, adding that at some places the coal production had to be slowed as there is no space for storage.

State-owned Coal India Ltd had earlier said that it aims to ensure power at a "just price" to the country amid the escalating West Asia crisis that endangers global shipping lanes and imported coal costs.

Coal India Ltd (CIL) contributes to 80 per cent of total domestic coal production and 75 per cent of total coal-based generation.