The Hindu Business Line : Rs 500-cr fund mooted for improving coal exploration

New Delhi, Sept. 10 The T.L. Sankar Committee on coal sector reforms has suggested that the Ministry of Coal must launch a programme of detailed exploration and drilling in the 11th Plan, aimed at increasing proved category reserves.

The committee has said that the Central Mine Planning and Design Institute Ltd’s current capacity of drilling 3 lakh meters per annum must be raised to at least 15 lakh per annum by involving companies from within the country and outside.

“The committee recommends the creation of a revolving fund of Rs 500 crore for this purpose and the fund would recover the outlays once the mining leases are granted on the reserves so proven. Such an enhancement in the capacity for detailed exploration could potentially add about 10 billion tonnes of coal to the proven category annually,” the report which is in the process of being finalised, has said.

According to sources close to the committee, the recommendations are in the final stages of being finalised and would be submitted to the Prime Minister, Dr Manmohan Singh, soon.

“A couple of suggestions were made by various stakeholders based on which there have been some minor changes but by and large all the recommendations were which were made in the earlier report were accepted,” an official told Business Line.

He added that the committee would be submitting the report to the Prime Minister by September 20.

Other suggestions

The committee also suggested that the Railways, Coal and Power Ministry have to work together for a model of Fuel Supply and Transport Agreement (FSTA) and the Government should ensure that all the concerned Ministries and agencies accept the FSTA .

“The Railways should, in consultation with the Planning Commission and the Ministries of Coal and Power, determine the main corridors through which coal would move in vary large quantities to power plants and examine the cost and feasibility of setting up dedicated trunk-routes for coal transport,” the Committee said.

It added that the exercise can also consider the possibilities of using multimode of coal transport involving rail-cum-shipping and the use of double decker freight trains which should be taken up immediately to enable a decision on this in the XI plan. The report has suggested that the Railway tariff for coal should be subject to a detailed review by an independent agency.