Amid rising concerns over the low domestic coal production, Coal Secretary S K Shrivastava said that lack of adequate transportation infrastructure has been impacting India’s coal production. Despite the world's fifth largest in terms of reserves and third-largest producer of coal, India's domestic output has failed to keep pace with demand over the past few years. At present, Indian domestic coal demand is around 35 percent higher than domestic supply, resulting into a high deficit of which a huge part is being met by costly imports from Indonesia, South Africa and Australia. In the previous fiscal, India imported $16 billion worth of coal.
S K Shrivastava further said that if transportations issues are addressed, through extending more railway lines to coal-rich areas such as Chhattisgarh and Jharkhand, domestic coal production can be increased to 50-60 million tonnes by the end of the 12th five year plan and 200-250 million tonnes by the end of the 13th plan. Meanwhile, coal secretary said that coal ministry is in talks with the Indian Railways to end these transportation woes.
Presently, Coal India is the only producer of domestic coal, which is also struggling to meet domestic requirement. Acute coal shortages in the country has become primary reason for power deficit in the country as coal-fired plants account for 57% of India's installed electricity capacity. Meanwhile, in order to meet India’s growing coal demand, the government has planned to invite bids from private players to start coal mining in a public-private partnership (PPP) mode in the country, which would also end the monopoly of public sector unit Coal India. The government is likely to auction 10 coal blocks in the month of March next year.
S K Shrivastava further said that if transportations issues are addressed, through extending more railway lines to coal-rich areas such as Chhattisgarh and Jharkhand, domestic coal production can be increased to 50-60 million tonnes by the end of the 12th five year plan and 200-250 million tonnes by the end of the 13th plan. Meanwhile, coal secretary said that coal ministry is in talks with the Indian Railways to end these transportation woes.
Presently, Coal India is the only producer of domestic coal, which is also struggling to meet domestic requirement. Acute coal shortages in the country has become primary reason for power deficit in the country as coal-fired plants account for 57% of India's installed electricity capacity. Meanwhile, in order to meet India’s growing coal demand, the government has planned to invite bids from private players to start coal mining in a public-private partnership (PPP) mode in the country, which would also end the monopoly of public sector unit Coal India. The government is likely to auction 10 coal blocks in the month of March next year.
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