The power ministry, which is striving for a revised addition of 90,000 mw in the 11th Plan, has made a strong argument in favour of allocation of more coal for various power projects in the 11th and the 12th Plans.
It has intimated to the coal ministry that there is a shortage of 14 million tonne (mt) of coal for operating stations, even after import of coal, due to low production by Coal India Limited (CIL). This shortage needs to be met by the coal ministry either by increasing production or by import of more coal.
The power ministry argued that in case of non-availability of coal, the coal ministry may import the coal and fill the shortage as envisaged in the New Coal Distribution Policy. It suggested that about 10% to 15% of the linkage to the new projects can be met through import.
The coal ministry in turn agreed to import coal for the utilities, however mentioned that power ministry should facilitate the fuel supply agreement with the utilities on the above lines. The power ministry agreed to take up the issues. The coal ministry has confirmed that it is aware of the shortage scenario and would be responding to the needs of the power sector.