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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Friday, November 19, 2010

Status of coal sector reforms-II: Regional mapping of 2791 sq km likely in XIth Plan

The status of some of the other steps undertaken by the Ministry of Coal (MoC) towards the implementation of the Committee-recommended policy reforms in the sector has been listed here:

  • Recommendation: A time-bound plan to cover the entire country by regional mapping in 15 years should be prepared by Geological Survey of India, Central Mine Planning and Design Institute (CMPDIL) and MoC. 
  •  Action taken
  •  --An Action Plan has been prepared to caver the balance coal bearing area of 5,438 sq km under regional exploration. Out of this, an area of 2,791 sq km is likely to be covered within the XIth Plan. Besides, exploratory drilling capacity of CMPDIL is being doubled. 
  • Recommendation: Increasing proportion of all domestic coal, that is not earmarked for power sector, be brought into the e-auction market over the next 2 to 3 years. 
  •  Action taken
  •  --E-auction of coal has already been started. Presently about 10% of the total annual coal production of Coal India Limited is offered under e-auction. 
  • Recommendation: All possible legal measures should be evolved to cancel the licenses issued earlier if the allottee has not taken adequate steps to bring the allotted mines to production or in setting up the end-use units. 
  •  Action taken
  •  --The MoC regularly monitors and reviews the progress of captive coal blocks periodically and some blocks have already been de-allocated. 
  • Recommendation: Setting up of Coal Governance & Regulation Authority (CGRA) to co-ordinate and attend to all issues relevant for development of coal resources, regulation of coal price (wherever necessary), and nurturing level playing field between the entrenched large public sector coal companies and the emerging small coal companies in the state public and the captive mining sectors.
  •  Action taken
  •  --The draft Bill for appointment of coal regulator is being finalized for consideration of the Government. 
  • Recommendation: The current system of linkages feeding the power sector may be replaced with formal long-term Fuel Supply and Transport Agreements that include the Railways.
  •  Action taken
  •  --The MoC has made it mandatory that the system of coal linkages should be first replaced by Letter of Assurance (LoA) and when the consumers fulfill specified milestones, the LoAs will be converted into Fuel Supply Agreements. 

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