Power Minister Piyush Goyal, seeking to boost electricity generation, today asked Coal India to ramp up production from existing mines, increase supplies to utilities by reducing the quantity offered in e-auctions and address the issue of fuel quality.
"We need to enhance the supply of coal. We have requested the Ministry of Environment and Forests to allow additional mining from coal mines which are already operational. Reduction in quantity of coal at the time of e-auction will enable additional supplies to power sector," Goyal told reporters here.
Goyal, who is also the Coal Minister, met top private power honchos, including Anil Ambani, Chairman of Reliance Power, Gautam Adani, Chairman of Adani Group, Vineet Mittal, Managing Director of Welspun Energy, and Naveen Jindal, Chairman of Jindal Power, to look for solutions to address the country's electricity shortage, which was as much as 7,000 MW in May.
"We have asked Coal India to expand coal production to the tune of 50-60 per cent for all power companies in the state sector or private sector. We need to enhance power availability in the country," he said.
Goyal added that the issue of quality of coal was also discussed during the four-hour meeting with the private power producers and other stakeholders.
Power generation has suffered as Coal India has been unable to meet production targets for reasons including delayed approvals for new mines. Importing coal to make up for the shortfall is expensive and utilities are not always able to pass on the higher costs to consumers.
Coal India, the world's largest coal producer, sells about 7 per cent of its production through e-auctions, where smaller, non-power users walk away with most supplies as electricity generation companies do not bid aggressively in view of tariff caps.
About 60 per cent of India's installed generation capacity uses coal. The minister asked Coal India to increase supplies of the fuel to power stations and said projects where construction is complete should get preference in allocation.
