India is planning a simple, attractive system for auctioning coal blocks to private firms by the year end, a measure government officials believe will help accelerate the infrastructure industry and have a multiplier effect on the economy.
Union minister of railways and coal Piyush Goyal said the coal quality has significantly improved in the last three years in India.
Odisha government today asked officials of the Steel and Mines department to step up preparations for auction of six more mines by end of October.
Even though the state governments have been able to auction just 29 non-coal mines in the last 20 months, the Central government is now expecting them to auction 54 mines in the current financial year.
India has the third-largest reserves of coal in the world. Therefore, the expectation is that there is also a high potential for coal bed methane (CBM), said Prashant Modi, CEO of Great Eastern Energy Corporation.
Coal India will ask power plants at short distances from coal mines to use trucks so that railway rakes are available for plants further away.
During the month of August 2017 as the country was reeling under energy crunch with growth in hydro, nuclear and others sources plunging down by 12%, 36% and 7% respectively, the demand for electricity from thermal power plants went up substantially, which, in fact generated 17% more power compared to August 2016.
Coal stock in Tamil Nadu has dwindled further in the last one week. While there was stock to run power plants for seven days a week ago, it has fallen to six days’ stock now.
Coal India’s decision to reposition itself as a holistic energy entity and harness its strength in mining by diversifying into metals will place the government-owned major in the big league of global miners such as Glencore, Rio Tinto, BHP, and Vale.
Secretary, Ministry of Coal Susheel Kumar reviewed the coal supply position to the Thermal Power Plants in the country. The meeting was attended by CMD CIL and all the CMDs of the subsidiary companies of CIL.