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Tuesday, 07 July 09
ECONOMIC SURVEY 2008-09 OPEN UP COAL TO FUEL POWER PLANTS


TOI reported that the coal ministry's efforts at opening doors for full private entry through open bidding in coal mining got a boost, with the Economic Survey identifying continued state monopoly over the sector, which accounts for more than half of domestic fuel supplies, as a major bump in the way of ramping up power generation.

The Survey said private firms are allowed to dig up coal only for captive use. Suggesting that private firms be allowed full entry to usher in competition under a well regulated scenario, as long as the coal sector remains a public sector monopoly, it could remain a bottleneck for accelerated development of the power sector.

Increase in the coal production has not been able to keep pace with the rise in demand due to lack of investments and technology infusion. There has also been lack of competition and hardly any improvement in efficiency levels. Dependence on imported coal has risen from 10 million tonne to about 16 million tonne in 2008-09. A full private entry is seen as a key to revitalizing the sector.

Source: Steel Guru
(
http://steelguru.com/news/index/2009/07/07/MTAxMjgw/Economic_Survey_2008-09_open_up_coal_to_fuel_power_plants.html)



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