More demand constraint than production constraint now in Indian coal sector: Partha S Bhattacharyya, Coal India
A lot was promised when Coal India went public like coal washery, coal production, better infrastructure but frankly Coal India has not lived up to its promise.
There are so many factors which determine whether a company of the size of Coal Infdia and of the complexity of Coal India can meet its promises or not. First off all the production growth that was promised was based on timely clearances, forest clearances and environment clearance and just about at the same time in 2010 when the IPO came up the Ministry of Environment & Forest came out with the blanket ban on all kinds of industrial expansion in those areas which they call the critically polluted and unfortunately most of the coal projects were in those areas.
Although the coal projects were not the cause of that pollution because we clearly demonstrated that the comprehensive environment pollution index for coal mines was much lower than the critical pollution levels. But still then it took more than two years to argue it out and for Coal India to come out of that problem so there was one factor which really came in the way of continuing with the 6% to 7% kind of production increase. But once those issues have been sorted out you must appreciate that from 2014-2015 onwards Coal India has turned back. 2014-2015 they gave a growth of 7%, 2015-2016 was an unprecedented growth of close to 9% which Coal India has given. Read more