The private sector has not fully utilised the allocation of coal blocks to them, said a senior official from the Ministry of Power. The official added, private sector would produce only 20 per cent of the estimated coal production from the blocks. He also said, the ban on seven of the nine coal mines has been lifted.
Speaking at the Southern Regional Power Conference 2011, organised by the Confederation of Indian Industry (CII) P Umashankar, secretary, Ministry of Power, Government of India, said the private sector which had been given 98 blocks has started production only in 13 blocks and the expected production by March-end 2012 would be only 20 million tonnes (MT) instead of the projected 100 MT.
“It was necessary that the private sector do its best to begin coal production, and we will help get the necessary clearances fast,” he said.
The government has been taking steps to increase coal production by expediting environmental clearances and empowering regional officials of the Ministry of Environment and Forests to grant local clearances. According to the secretary, “The ban on seven of the nine coal mines has been lifted. For the other two, the process of clearance would be put on the fast track.”
Coal India would resort to e-auction only after allocating coal to thermal power plants. These steps would help ramp up coal production and increase supply to power plants which faced only a temporary problem owing to rains, floods and regional agitations, said Umashankar.
The increasing demand for coal could be met only if the private sector stepped in and increased production to the projected levels.
The secretary said, the private sector which had been given 98 blocks, has begun production only in 13 blocks and the expected production by March-end 2012 would be only 20 million tonnes instead of the projected 100 million tonnes. According to Umashankar, three fundamental issues in ensuring 24x7 power supply to all include fuel linkage, a judicious mix of power generation sources and the key role to be played by the private sector.
Umashankar said, the 12th Plan envisaged a capacity addition of over 100,000 Mw. Of this, 75,000 MW would be from the conventional sources, 18,000 Mw from renewable sources and 13,000 MW captive capacity. Environmental clearances for hydel projects would be expedited.
About 1000 MW was to be solar power. Of this bids have been given for 700 Mw and the balance were in the bidding process, he said.
On the capacity addition to power generation front, the achievement by the end of March 2012 would be 52,000 Mw. The capacity addition target set for the 12th plan period was 100,000 MW. Of this 40 per cent would be from supercritical technology, and 50 per cent from the private sector, he said.
In tune with the generation capacity increase, transmission capacity also would be stepped up, Umashankar said. He added that steps were under way to bring down the transmission and distribution losses to below 15 per cent.
