Coal Blocs Allocations Will Be With All Clearances From 2010 says Bagrodia
Besides, setting up of Coal Regulatory Authority, the Coal Ministry will put in place a new policy as per which coal blocs will be awarded to their developers with prior necessary clearances from government itself w.e.f. 2009-10 to ensure that early coal production commences in such blocs without any delay, discloses Minister of State for Coal, Mr. Santosh Bagrodia.
Addressing the ASSOCHAM organised Interactive Session on Public Private Partnership in Coal Sector’, the Minister further disclosed that a decision to set up a Coal Regulatory Authority has already been taken to introduce competition and remove inefficiencies of Coal India Ltd. to end its monopoly.
The Ministry, according to Mr. Bagrodia has also come to the conclusion that perspective coal blocs should be awarded after government has already obtained over 60 clearances from its various departments to prospective developers so that these are not required to run from pillar to post to obtain clearances and then start production. The new policy is being evolved in view of the fact that the government so far awarded 182 coal blocs to various bidders in public as well as private sector, of which only 17 developers have gone into coal production.
The delay in coal production has commenced because the developers could not obtain necessary clearances and that is why a new policy is being put in place as per which the allocation of coal blocs would be done after the Coal Ministry has already acquired clearances for developers. The new policy will also encourage private sector’s coal players to go abroad and explore coal bloc for production and then set up joint venture with the Indian state owned coal companies and other public sector companies as currently the statute prohibits public sector companies to form joint ventures with Indian private sector companies to go overseas to acquire coal blocks for production.
The Minister categorically stated that India is hardly facing any coal shortages as in the month of May, it offered 15 million tones of coal to the concerned stake holder. In future, the Coal Ministry would increase this quantity and take it through the level of 20 million tones to prove that there is no coal shortages in India.
The Minister also said that by the year 2011-12, the total coal production would exceed 732 million tones since the growth for the coal sector has been doubled and the government would ensure that it grows at double digit rate. Mr. Bagrodia also said that coal would remain the single source for generating thermal power even during next 20 years as nuclear power and hydro power would take longer to get commissioned in view of riders attached with them such as environmental and other social issues.
Speaking on the occasion, the ASSOCHAM President, Mr. Venugopal N. Dhoot demanded complete deregulation of coal sector and complimented the Coal Ministry to have decided to put in place Coal Regulatory Authority as also evolve a new policy as per which coal blocs allocations would be with all clearances. This, according to Mr. Dhoot is an important step in the direction of liberating coal sector for higher production as coal would be the main input for producing thermal power.
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