Coal sector witnessed a number of initiatives during 2013 to augment
coal production and supply. Regular reviews of captive coal blocks were held by
Inter-Ministrial
Group to expedite their development, fuel supply agreements were signed with
Power Sector and setting of Coal regulator approved. Under the bidding policy,
seventeen coal blocks allotted to the Government Companies and thirty eight
coal blocks brought under production. Highlights and achievements of the Coal
Ministry during the year are as follows:
Assured coal supplies to 78,000 MW projects to
boost power production
In
a major boost to the power sector, the Government approved supply of coal to
power plants with a capacity of 78,000 MW. Commissioned or to be commissioned
during April 2009 to March 31, 2015. Coal India Limited(CIL)
has already signed 157 Fuel Supply Agreements for a capacity of 71,145 MW. This
will not only increase the power generation further but will also fast track
several power project which are under consideration.
Coal Regulator proposed for Coal Sector
The
Government has approved the setting up a Regulatory Authority for Coal Sector on
June 27, 2013. As the enactment of the legislation through the Parliament would
take some time, therefore, it was decided that a non-statutory regulator be set
up through an appropriate executive order. Accordingly, the matter has been
referred to the Ministry of Law for advice/ consultation for framing the
executive order. The Coal Regulatory Authority Bill was also introduced in the Lok Sabha on December 13, 2013
for its consideration.
Public Private Partnership to Augment
coal production
The
Government has decided to initiate Public Private Participation (PPP) to
augment coal production in the country. Accordingly, a committee has been set
up under the chairmanship of Secretary (Coal) with representatives from
Planning Commission, Ministry of Finance (DEA), Ministry of Labour,
Ministry of Law & Justice (DLA) among others to recommend
a framework for the PPP. The committee deliberated on the various models
including engaging Mine Developer cum Operators (MDO) & In consultation
with all the stake holders, the Government is in the process of finalizing a
Model Concession Agreement (MCA) for engagement of MDO in CIL.
Further Disinvestment of Neyveli
Lignite Corporation
Disinvestment
of 3.56% paid up equity capital of Neyveli Lignite
Corporation (NLC) out of Government of India’s shareholding (93.56%) has taken
place through Institutional Placement Programme
(IPP). This has made NLC compliant with the norms as per SEBI regulations. The
59701260 shares have been sold @ Rs. 60/- per share and total sale proceeds
received by the Government are Rs.358.29 Crores.
Allocation of Coal Blocks to Government Companies
Under
newly initiated bidding policy seventeen coal blocks, fourteen blocks for
specified end-use i.e. Power and three blocks for Mining were allocated to
various State Government Companies/Corporations/CPSUs. The proposed Coal Mines
Production and Development Agreement to be signed by the Government with the
respective eligible Companies is under finalization. Further, the Government has also decided to
put on offer five lignite blocks located in the states of Gujarat and Rajasthan
for Power/Commercial mining/ Underground Coal Gasification, for allocation to
Government Companies and invited applications July 29, 2013 from Government
Companies/Corp. particularly from the state of Gujarat and Rajasthan, keeping
in view the fact that lignite cannot be transported over long distances due to
its low calorific value, high moisture and soft/brittle nature of mineral,
making it susceptible to catch fire. The applications received in response to
the NIA are under process.
Four coal blocks have also been identified for
allocation to power projects on the basis of competitive bids for tariff and
applications for the same were invited on December 20, 2013. Besides this,
procedure for allocation of area containing coal through auction by competitive
bidding is under process.
Thirty eight captive coal blocks come under
Production
The
target fixed for coal production from the captive coal blocks for the year
2013-14 is 46.15 million tonnes. As
on date (upto October, 2013), 38 captive coal blocks
have come under production. The production achieved during the year
2013-14 (upto October, 2013 provisional) is 21.740
million tonnes (13.645 million tonnes
for private companies and 8.095 million tonnes for
government companies).
Third Party sampling of coal supplies introduced
Various
consumers of Coal India Limited have been raising their concern about the
quality of coal supplied. In order to address these concerns, CIL has
introduced Third Party Sampling and analysis of coal
supplied to various power plants in the country. For this purpose, CIL has
engaged independent third Party agencies for sampling and analysis of coal at
suppliers’ end and the system has been made operational from October 1, 2013
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