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The Government has initiated measures to reduce the demand – supply gap in respect of coal which is projected to be 55 million tonnes in 2006-07 and 95 million tonnes in 2011-12. Efforts are also being made to remove the cobwebs that have been adversely affecting the coal sector over a period of time, said Dr. Dasari Narayana Rao, the Minister of State for Coal and Mines, while addressing the Parliamentary Consultative Committee, here today. Production of coal will be increased through increased supply from existing mines, advancing production from new projects and speeding up the allocation of blocks for captive mining, he said.
Dr. Narayana Rao said that despite the Coal India Ltd. (CIL) consistently meeting the production targets, demand – supply gap has been increasing on account of growing demand for coal from Power sector and increased pressure on domestic supplies due to high prices of imported coal. He informed the members that an Expert Committee has been set up for a comprehensive review and recommending a road map for coal sector. The Minister said there is a need for improving the productivity of man and machinery through introduction of latest technology. Allotment of captive coal blocks is being speeded up to promote private sector participation. He said that outsourcing is also being resorted to by the coal companies wherever considered necessary and feasible.
Responding to the concern of the members about misuse and pilferage of coal the minister said a meeting of the CEOs and vigilance chiefs of public sector coal companies has been convened in Kolkata tomorrow to evolve measures to ensure supply of coal only to the genuine consumers. The Minister underscored the need for effective monitoring and streamlining vigilance administration to prevent malpractices to improve the public perception of the coal sector.
The Minister informed the members that a single window mechanism will be introduced to ensure early approvals both for coal and mining projects. Dr. Rao said that procedures and rules and regulations are being further simplified to encourage private investments including Foreign Direct Investment in the mining sector. He informed that FDI of Rs. 4044 crore in mining sector has so far been approved and 177 Reconnaissance Permits have been granted covering an area of 2.38 lakh sq. kms. He said that the Prime Minister, Dr. Manmohan Singh has asked the Ministry to enable the Geological Survey of India acquire advanced technologies to modernize its land, aerial and marine survey systems in view of importance of the exploratory work.
Members of the Consultative Committee voiced concern over the mismatch between the demand – supply in coal. The Minister agreed to the members' proposals to revamp Central Mine Planning and Design Institute Limited (CMPDIL) and to strengthen safety measures.
The following members of Parliament attended the meeting :
S/Shri Balashowry Vallabbhaneni, Chandra Shekhar Dubey, Bagun Sumbrui, Nikhil Kumar Choudhary, Punnulal Mohale, Jual Oram, Rajiv Ranjan Singh, V. Hanumantha Roa, Rudra Narayan Pany and Sudarshan Akarapu.
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