Long-term procurement planning for coal-II: CAGR of over 8% needed in domestic production

A compounded annual growth rate (CAGR) of between 8% and 9% over the next 10 years is needed for domestic coal production to meet the projected demand by the end of the 13th Plan period.

8Such performance is likely a pipedream, given that the coal sector has, thus far, limped along, with a lot of difficulty, at a 6.6% growth rate over the ongoing XIth Plan. Assuming that growth picks up to a more realistic 7%, according to the Planning Commission, the gap in domestic coal availability will be observed as 179 MT by 2021-22, 15 MT more than the 164 MTs projected at the end of the 12th Plan.The demand-supply gap by the end of the current Plan is likely to stand at 120 MTs, with the estimated availability of 630 MTs in 2011-12.