“Coal supply needs to improve”, says Sandeep Jajodia, Monnet Ispat 

Sandeep Jajodia, Executive Vice Chairman & MD, Monnet
Ispat and Energy Ltd in an interview has said that Coal
supply in India should be improved by raising the mining capacities and this will reduce our dependence on coal imports from countries like Indonesia, South Africa & Australia.

Speaking about the PMO's recent direction to Coal India to
sign FSA's for 80% power linkages, he said that it is a very welcome step as
this is the only option with the government as a short term measure. Most of the
power plants are running at lower capacity and lenders are not disbursing money
to power projects because they were not sure about the unrestricted supply of
the fuel.

Stressed upon improving the mining capacity of
captive coal block holders he said “a lot of captive blocks which are in
production right now are in a position to mine more coal, but they are in the
shackles of small guidelines or small policies which were put in place in the
past. They are only able to provide coal for the end use plant, but if they are
encouraged, they can quickly produce more coal. They can ramp up the
capacities and produce more coal and supply to a neighbor who is already an
approved end user, another power plant or another cement plant or another steel
plant thereby bringing down the pressure of the markets”

Improving mining capacities will help to bridge some gap.
The Indonesians, the South Africans, the Australians – they all are making hay
and enjoying this India crisis, he added.

Speaking about the internal restrictions in Indian mining
sector, he said, “Captive coalminers will have to be given some incentives to
produce more and give it to a neighboring coal plant or a steel plant or a
cement plant which is an approved end use because there is no restriction by
the act per se for captive miner to provide coal to another approved end
use. It is only our own internal restriction. These restrictions in the
present context when India is going through a very deep crisis in coal should
be removed according to me and there should be easy means put in place where
the captive miners are able to produce more coal and help another power
producer or steel producer to provide coal”.