The prime minister is set to
consider a proposal to allow owners of captive coal blocks to sell excess
production to state-run Coal India, a move being opposed by the coal ministry.
As per the proposal mooted by the
Planning Commission, three quarters of the revenue from sale of surplus coal to Coal
India at notified prices would go to the exchequer while the rest would be
incentive for the mining company.
The proposal will be taken up by
Prime Minister Manmohan Singh on Monday when he meets coal and power
secretaries along with top Commission officials to take stock of the sectors
and discuss issues related to critical coal supply to power projects, future of
imported coal-based projects and the financial health of distribution
companies.
A senior Planning Commission official
said the move could, to an extent, help tackle the problem of widening coal
deficit and reduce dependence on coal imports. Coal accounts for over 50% of
the country's power generation capacity. Its deficit in the country is likely
to grow to 137 million tonne by this the end of the fiscal.
Mining companies say the move
could bring much-needed reforms in the coal and power sectors. The coal
ministry, however, is against the proposal.
Source: The Economic Times
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