Coal News We love to talk!
The opening up of commercial coal mining to private companies will bring in competition in the coal sector and reduce power tariff, a top official said today.
"Let's begin by saying commercial coal mining is a very big reform in the coal sector and the idea is to bring in competition for the monopoly coal miner, which is a public sector company called Coal India (CIL)," Coal Secretary Susheel Kumar told PTI.
India is in the process of throwing open commercial coal mining to private firms for the first time in four decades, with the aim of shifting the world's third-biggest coal importer towards energy self-sufficiency.
"So, this is the intervention which the government wants to bring in. And what we wish to achieve ultimately in the coal sector is to reduce the prices of coal so that our ultimate end-use consumer who is a power consumer gets power at cheaper rates," the secretary explained.
The government, he said, wants to convey to potential investors that sustainable and efficient mining, not revenue maximisation, is the idea behind commercial coal auction.
"The objective of the government is not maximising the revenue. The idea is not to earn money... So, whatever model we work out, we will work out in such a way that objective (of sustainable and efficient mining) is met and prices of coal come down," Kumar added.
As per the Coal Mines Special Provision Act of 2015, the government can open up commercial coal mining for private players. With a chunk of population going without electricity, Kumar suggested that the government should ensure these people get power.
"So, the entire (coal) sector is operating in such a way that we reduce prices, and what is the mechanism? The mechanism is competition, more efficiency, moremechanisation. What we hope to achieve through commercial mining is these mines will attract efficient power sector players who will invest in a big way and bring in that efficiency, ultimately reducing the prices," the secretary added.
The government plans to auction four blocks under commercial mining in the first phase. A group of secretaries has also suggested that the government should create competition for CIL by opening up commercial coal mining.
- Andhra Pradeshs energy programme a model for others: Power ministry Read more
- If Indias solar energy is cheaper than coal, why isnt the industry thriving? Read more
- ReNew Power, Chinas Hareon Solar to jointly set up 72mw-solar plant in Andhra Pradesh Read more
- More power to Modi! Indias power sector showed massive improvement in NDA-era; see chart Read more
- CIL may allot extra coal produced to power plants Read more
- Gujarat unveils scheme to encourage farmers to use, produce solar power Read more
- Tap solar power, Kurien tells CM Read more
- Delhi hikes 'fixed charge' for hi-end electricity users Read more
- CIL stake sale: Deadline for merchant bankers extended again Read more
- M-cap of top 6 Sensex cos up over Rs 21,000 cr Read more