Planning Commission to set up committee for surplus coal usage

NEW DELHI: Planning Commission is contemplating to set up a committee to look into possibility of utilisation of surplus coal from captive mines by power utilities and other domestic usage.


"We have not set up any committee so far, but we are thinking about it. I think in the next week or 10 days we will take a call on that (setting-up of the committee on utilisation of surplus coal)," Planning Commission Member B K Chaturvedi told PTI.

He said the committee, if formed, will look if there is any surplus coal available in the country and how it can be used.

Chaturvedi said the Planning Commission will consider setting up this committee, and if decided, the panel will discuss about the coal issue in two or three weeks.

The Power Ministry has also suggested the Coal Ministry to incentivise the surplus coal production from the captive mines in a bid to produce more coal as India is facing fuel shortage.

Domestic coal demand was at 772.84 million tonnes (MT) against production of 557.60 MT in 2012-13, according to official data.

The demand-supply gap of coal in the country is mainly met by imports from countries such as Indonesia, South Africa and Australia.

The deficit of about 204 MT had resulted into doubling of coal import bill at about USD 18 billion in 2012-13.

India had imported 110.42 MT of coal between April, 2012 and January, 2013.

Besides, the government is also working on a policy on usage of surplus coal.

A draft policy on the usage of surplus coal from mines has also been circulated to the Law Ministry, Power Ministry, Finance Ministry, Railway Ministry and DIPP (Department of Industrial Policy & Promotion) for consultation.

C Rangarajan, Chairman of Prime Minister's Economic Advisory Council, has also said that higher coal import was having a bearing on the current account deficit of the country which touched a record high of 6.7 per cent of the GDP in December quarter of 2012-13.

India is running a high CAD of more than 5 per cent of GDP and the rupee depreciation has worsened the deficit further.