New Delhi, 7 May, 2012

In accordance with the annual plans of the ministry of coal, the gap between projected demand and supply of coal has increased from 60.83 million tones in 2008-09 to 161.50 million tones in 2011-12. Similarly, the import of coal during this period has also increased from 59 million tones to 98.9 million tones approximately. The increase in the gap is due to the less production than the growth in demand. This was stated by Mr. Pratik Prakashbapu Patil, the union minister of state for coal in rajya sabha to-day in reply to a series of questions on the subject by Mr.Parimal Nathwani.

The minister informed that the government had taken series of steps to increase the production of coal in the country. He said the steps included expeditious clearances from environmental and forestry related departments, pursuing the railways for enhancing the availability of rail rakes and approaching the concerned state governments for necessary assistance in land acquisition, law and order etc.

He further said that Coal India Ltd. and its subsidiaries initiated similar steps to augment the coal productions by increasing the efficiency of the equipments, regular monitoring, mechanization, capacity addition and efforts for resolving issues relating to environment and forest clearances, land acquisition, law and order etc.

On Mr. Nathwani’s question of competitive bidding for coal blocks, the minister stated that the government had notified ‘the Auction of competitive bidding of coal mines rules 2012’ in gazette of India on February 2, 2012. Further allocation of coal blocks will be made as per the amended provisions of the act and rules framed thereunder, he added.

Mr. Patil further said that a coal regulatory authority was proposed to be set up to regulate and conserve resources in the coal sector, protect the interests of consumers and producers of coal and related incidental matters. The proposed regulator is expected to create a level playing field for all the players in the coal sector and to facilitate faster resolution of issues relating to economic pricing of coal, benchmarking of standards of performance etc, he said.

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