India is working relentlessly towards attaining the coal production target of 1 billion ton by 2020, and at the same time, efforts are being directed towards reducing coal imports. These were the key points in the speech delivered by Anil Swarup, the Coal Secretary in the Government of India (GoI), at a seminar in Kolkata today.
Elaborating the cause behind Coal India Limited (CIL) falling behind its production targets, Swarup said that it was due to low demand that made excessive production insignificant. The low demand for coal has emanated primarily due to low demand for power, arising due to distribution companies reeling under financial constraints, restricting them from purchasing more power, the Coal Secretary said.
To relieve the distribution companies from financial crunch, the GoI has launched the Ujwal Discom Assurance Yojana (UDAY) bonds, upto 1 lakh crore, aimed at turning around the state distribution companies.
He exuded confidence that demand for power will rise substantially in the country that will increase demand for coal. The Coal Secretary attributed his optimism for seeing rising demand for power in the country to the low per capita consumption that renders enough space for power consumption to grow.
Swarup also highlighted CIL’s focus on supplying quality coal and in this regard, supply of crushed coal is being emphasized upon. Moreover, he articulated the emphasis of the Coal Ministry to cut down coal imports into the country.
Leave a Reply