The Cabinet Committee on Investment ( CCI), in its second meeting, will take up for green nod Coal India Ltd?s (CIL) 20 projects with combined production capacity of 37 million tonne a year, which can fire more than 7,000 MW power generation capacity.
Besides, the CCI is also expected to examine environmental hurdles holding up the implementation of three rail projects which are critical for transporting coal from mines located in Orissa, Jharkhand and Chhattisgarh.
The coal ministry has sought expeditious approvals for these projects, saying they are crucial to ensuring the country?s energy security and maintaining economic growth. The meeting, scheduled for Monday, has been deferred and could be held later this week.
The CCI, which is chaired by the prime minister himself, is mandated to fast-track clearances for infrastructure projects where investment of more than R1,000 crore may be required.
The top-level committee held its maiden meeting on January 30, where pending defence ministry clearances for 39 oil and gas blocks were discussed.
Domestic demand and supply of coal has widened in recent years as CIL is unable to step up production. Environmental hurdles were key constraints for the company stepping up production.
Following a recent directive from the PMO, the public sector has agreed to meet at least 80% of the coal requirement for 60,000 MW capacity, which is expected to be commissioned by 2015. But meanwhile, coal supply for another 7,000 MW under-construction capacity remains untied, despite CIL issuing letters of assurance. Expeditious clearances for these projects will help CIL to supply coal to these projects on time.
Coal fields which are being linked to rail network are located in places like the Mand-Raigad in Chhattisgarh and North Karanpura in Jharkhand. CIL is financing these projects.
Later, the CCI might also also track the progress in implementation of these projects on a quarterly basis to ensure they are commissioned matching with the schedule of related power projects.
Meanwhile, private power companies have requested the Union power ministry to take to the CCI the issue of pending gas supply to 24,000 MW capacity. Investment of more than R1 lakh crore has been made by private companies in these projects.
On behalf of private producers, Ashok Khurana, director general, association of power producers ( APP), sent a letter to the power minister recently to seek his intervention in this matter.