Coal ministry projects 55 mt shortage by ’06-07

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Mumbai, March 4: The Union coal ministry, in a recent presentation to the consultative committee, has projected a coal shortfall of 55 million tonne against the total demand of 460.50 million tonne during the terminal year of 10th Plan (2006-07). According to the ministry, the shortage would go up to 95 million tonne against the demand of 620 million tonne in the terminal year of 11th Plan (2011-12).

The ministry has estimated coal supply of 405 million tonne in 2006-07 and 525 million tonne in 2011-12.

“Although domestic coal production, especially from Coal India subsidiaries, registered a growth of 5.40% in the recent past, the gap between demand and indigenous supply does not appear to have narrowed. It is projected to increase in the coming years,” the coal ministry said. It recorded the gap between demand and supply of coal at 5.85 million tonne in 2003-04.

The power industry has projected that the burgeoning gap between demand and supply would have a negative impact on the proposed power generation projects which are mainly dependent on coal as fuel.

The Centre has estimated a capacity addition of 41,000 mw by the end of 10th Plan and 60,679 mw at the end of 11th Plan. Of this, majority of the power developers including the state-run National Thermal Power Corporation, various state electricity boards and the unbundled entities and private players have been largely dependent on coal.