Power and coal minister Piyush Goyal has asserted that in order to help raise electricity generation in the country, Coal India (CIL) will reduce the volume of coal offered through e-auctions by almost 50%.
Coal shortage in the country has become a concern for Indian power sector as coal-fired plants account for 59% of India's installed electricity capacity. Further, power companies need long-term supply assurances from coal producers, thus e-auctions do not fit to their plans. Further, the Minister added that the government is formulating plan for rationalising coal linkages in order to improve efficiency. Currently, coal linkages in the country are completely irrational as fuel is being transported from a far-off place to power plants, which already has nearby coal sources. Piyush Goyal further said that government is making all efforts to increase coal production in the country and presently a study is being carried out on around 200 mines and a report on the same would be ready by Aug 31. Goyal said that the government is mulling a more robust financial restructuring plan to improve the financial health of power distribution companies.\
CIL is the only producer of coal in the country and is struggling to meet domestic coal requirements. CIL production fell 4.21 percent short of its production target to 462.53 million tonnes in FY14 amid concerns like shutdown of mining activities in Talcher Coalfields in Odisha. The government has set coal production target at 507 million tonnes for CIL for FY15.
Coal shortage in the country has become a concern for Indian power sector as coal-fired plants account for 59% of India's installed electricity capacity. Further, power companies need long-term supply assurances from coal producers, thus e-auctions do not fit to their plans. Further, the Minister added that the government is formulating plan for rationalising coal linkages in order to improve efficiency. Currently, coal linkages in the country are completely irrational as fuel is being transported from a far-off place to power plants, which already has nearby coal sources. Piyush Goyal further said that government is making all efforts to increase coal production in the country and presently a study is being carried out on around 200 mines and a report on the same would be ready by Aug 31. Goyal said that the government is mulling a more robust financial restructuring plan to improve the financial health of power distribution companies.\
CIL is the only producer of coal in the country and is struggling to meet domestic coal requirements. CIL production fell 4.21 percent short of its production target to 462.53 million tonnes in FY14 amid concerns like shutdown of mining activities in Talcher Coalfields in Odisha. The government has set coal production target at 507 million tonnes for CIL for FY15.
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