Focus on coal supply to push economic growth

As the country is gearing up to revive economic growth, there should be focus on providing quality, quantity and time-bound supply of coal, said the Economic Survey.

The annual target for coal production for 2014-15 is 630.25 million tonnes. Production of raw coal in April-December 2014 increased by 9.1 per cent to 426.7 MT, compared to 1.5 per cent growth in the corresponding period in 2013-14. Though coal production has been increasing over the years, total import, including both coking and non-coking coal, has also increased due to higher demand, mainly from fuel-starved power stations, said the survey.

The survey said the government has taken quick decisions to overcome uncertainty in the coal sector, which originated from the Supreme Court's cancelling of coal block allocations.

The government issued the Coal Mines (Special Provisions) Ordinance, 2014, on October 21 last year, followed by the Coal Mines (Special Provisions) Second Ordinance, 2014, in December, said the official document. The main purpose of these ordinances was to provide for allocation of coal mines to steel, cement and power utilities, which are vital for development, it said.

Besides, it added, they aim to ensure smooth transfer of rights, titles and interests in the mines or blocks, along with their land and other associated mining infrastructure, to the new allottees, to be selected through an auction or allotment (to government companies). The allocation of coal blocks would now be made in line with the provisions of the ordinances and rules made under them, and the auction of coal blocks would be through an e-auction process in order to keep the process transparent, said the survey.