‘Assess demand first to make CIL’s $1 bn investment plan work’

‘Assess demand first to make CIL’s $1 bn investment plan work’

A careful assessment of coal demand for power sector is needed so that the over USD 1 billion annual investment plan by CIL for raising its production capacity to 1 billion tonne is not stranded, the government think tank Niti Aayog has said.

The think tank also suggested to spin-off Coal India’s seven arms into independent firms and imbibe competition, saying the coal behemoth was supplying coal to consumers at higher prices.

“It has to strive hard to achieve the target of 1 billion tonne production by 2019. However, with subdued demand for coal, we may not require the production level envisaged above. A careful assessment of demand for coal-based power is needed so that the over USD 1 billion annual investment being made by CIL, in raising its production capability is not left stranded,” Niti Aayog said in its Draft National Energy Policy. Read More…

 

Credit By: The Times Of India

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