Coal news and updates

Piyush Goyal, minister for power, coal and renewable energy, says systemic changes will help solve the problems of coal and power sectors. For coal blocks, he wants a "plug and play" system in which coal blocks will be auctioned after they are granted various clearances to speed up and simplify mining and get better valuation.

 

He also finds no obstacle from the environment ministry, in a significant departure from the PA regime, when energy ministries blamed green clearances for delays. In an interview in ET, Goyal also said that simple steps like ensuring mines supplied coal to nearest power plants would cut needless transportation and ease bottlenecks.

 

For this, it was important that Coal IndiaBSE 0.13 % retains its structure of a holding company, but in the same set up, its subsidiaries can be given incentives to compete. He said coal supply bottlenecks would be eased and all thermal plants and all thermal plants would run at optimum capacity and the country does not need to import coal. Edited excerpts:

 

What are your priorities for power and coal ministries?

 

My entire theme of running departments is to set procedures and framework right instead of focusing on individual problems. We are working towards making process transparent to enable new people to come and invest. We cannot change the systems overnight but we will take steps.

 

What are your plans for auctioning coal blocks?

 

We are looking at introducing plug and play model for auctioning coal blocks in future instead of making developers struggle for land acquisition, water supplies, environment and forests clearances. Today, coal blocks are not attracting good valuation.

 

It is the job of government to get those clearances like ultra mega power projects to get maximum value and reduce corruption if there is any. Banks will be happy to finance ready to go projects and you will see investment kicking off faster.

 

What role private players can play in power and coal sectors?

 

I have asked officers to stop distinguishing between private and public sector. If a decision is taken in national interest, there cannot be differentiation between these two. Rules should not be different for anyone or there will be monopoly and consumers will suffer. Just that we cannot not compromise with the interests of consumers.

 

How has been the cooperation from environment ministry?

 

Prakash Javadekar and his ministry are doing fine job of promoting development while not undermining environment protection. I do not know why earlier government had problems in dealing with environmental issues. Together, we are making decision making process driven and making procedures online.

 

How do you plan to address the need for improving coal production?

 

My aim is to provide coal to all plants to be able to operate at 80-90% capacity. We will also try to incentivize old power projects that will improve efficiencies by increasing scale and introducing efficient technologies to save fuel.

 

We will make every effort to produce more coal, unburden the system from wastages, improve efficiency and reduce dependence on imported coal. Through this, in next few years we can double our power generation without adding new capacity.

 

How are you addressing power producers' concerns over coal quality?

 

We have requested Coal India to allow its customers to appoint a third party inspection agency at loading point in its consultation.

 

On experiment basis, we will also introduce inspection at unloading points of PSUs for three months and will review the results to find out ways to improve quality.

 

We have also requested Coal India to reduce quota under e-auctions to enable independent power producers and captive power producers to procure more coal instead of making them dependent on traders. We can also improve quality by promoting internal competition and incentivize people in terms of better career avenues.

 

What are your plans for rationalizing coal linkages?

 

First thing I have done is to rationalize coal linkages. Coal can be supplied to the projects from their nearest mines to reduce transportation by unlocking irrational linkages.

 

We can save thousands of crore of Rupees for the country through this. We can rejig coal linkages depending on the calorific value and difference in the costs can be sorted out bilaterally. 

 

In such situation, Coal India as a holding company has its advantages.

 

What are your plans for promoting solar power?

 

We want to wait and see what happens to the commerce ministry's decision to impose anti dumping duty on import of equipment.

 

We have requested for the review. However, we have a limited capacity to manufacture equipments for solar power and cannot look at expanding solar mission. We should make a road map for making equipment for solar power.

 

Also, the earlier government has left us saddled with pending disbursements of subsidies. We are trying to get some funds to reduce this burden.

 

How you intend to set the distribution sector that is largely controlled by the state governments?

 

What happened in distribution sector in last five years is scary. Rajasthan alone added Rs 50,000 crore in distribution losses in a state where barely 6% of country's population lives.

 

Effort of my ministry is to bring down costs, support the development transmission and distribution infrastructure. I am sure states will also participate in improving this for their benefit. 

 

Source: ET