Panel Recommends “Opening Up” Of Coal Sector

A report submitted by the advisory group for integrated development of power, coal and renewable energy has suggested “opening up” of the coal sector. It has also recommended upgradation of Coal India Limited (CIL) and its subsidiary companies like Central Mine Planning and Design Institute Limited.

The panel, headed by Suresh Prabhu (who has now become the Union minister for Railways), was set up to suggest steps to boost the production of coal. The panel submitted its report to Union Power and Coal Minister Piyush Goyal.

The panel also looked into the coal blocks allocation process, coal linkage rationalisation and swapping of coal linkages.

The report stated, “Various options should be explored to develop railway infrastructure from coal mines to main railway system, including through a joint venture company on infrastructure by CIL.” The report also recommended speeding up of reforms in the distribution sector and suggested privatisation of the distribution system or public private partnership (PPP) in distribution.

“There is also a need for enhanced role of and improvements in working of CEA (Central Electricity Authority), amendments to Electricity Act, tariff policy and standard bidding documents,” the report added.