Coal news and updates

The industry has welcomed the government's proposal to expedite environmental clearances for state-owned Coal India’s expansion projects so that the PSU could quickly ramp up production. However, views sharply differ among stakeholders on the proposal to divert e-auction coal for electricity generation.

Deepak Amitabh, chairman, PTC India, told FE, “Since long-term structural reform of the coal sector will take time, diversion of e-auction coal is a positive move in the short-term.”

Harry Dhaul, director general, Independent Power Producers Association of India, too hailed the proposal to divert e-auction coal. “Diversion of e-auction coal will benefit power producers who are unable to fully utilise their generation capacity due to fuel shortage,” Dhaul said.

But, on the other hand, Kameswara Rao, leader, mining, energy and utilities, PWC, did not find much merit in the proposal.

“The proposal to divert e-auction coal is a zero-sum game, so while the expected 3% diversion in e-auction will help supply 3,000 mw additional capacity, it would leave some segments of small industries and cement stranded for want of coal. It may also marginally impact some private power plants that supplement regular coal need through e-auction purchases,” Rao told FE. Price realised by CIL from e-auction of coal is almost double what it gets from linkage customers.

Rao, however, welcomed the proposal to expedite environmental clearances for CIL's expansion project. “The proposal to expedite environmental clearances will help, but a wider range of state-government support is needed to improve domestic coal supply,” he said.

“If government assures speedy clearances (environment, forest and land) for coal projects it would definitely boost production in the medium to long run,” another expert told FE.

Power minster Piyush Goyal, who also holds coal portfolio, has asked CIL to reduce e-auction coal to

25 million tonnes in 2014-15, down from 57 million tonnes in the previous year.

The government also plans to relax environmental norms for the PSU's expansion mining projects so that it could quickly ramp up production.

 

 

 

Source: http://www.financialexpress.com/