The Hindu Business Line : Minister pooh-poohs coal shortage complaints

Mumbai, May 21 While power units are crying hoarse over coal shortage, the Union Minister for Coal, Mr Santosh Bagrodia, says there is actually a problem of plenty.

Saddled with an inventory of 47 million tonnes, the public sector coal companies are planning special efforts to liquidate 25 per cent of their holdings, besides sharply scaling up the monthly quantity sold under e-auction from 3 million tonnes on an average to 15 million tonnes in May, the Minister said.

Addressing the media here on Wednesday, Mr Bagrodia said any claim of shortage was because of their (power plants) failure to maintain the mandatory 21-day inventory. About 27 power units were in critical condition as their stock position was less than seven days, he said.

Referring to the Power Ministry claim on coal shortage delaying projects, Mr Bagrodia said there was only 23,000 MW capacity addition last fiscal, against the targeted 1 lakh MW. “The Power Ministry is claiming there is a 40 million tonne shortage, but we have 40 million tonnes stock, where is the shortage? There is enough supply, but everybody wants us to hold the inventory,” he said.

The Government was set to increase coal production by five to six per cent to 425 million tonnes this year as against 405 million tonnes last year.

The demand was for 450 million tonnes, of which 50 million tonnes were for coking coal which was not available. Referring to imports, he said 50 per cent was coking coal and the rest was to meet emergency needs brought upon by the units themselves, besides the import of special quality coal. He also assured that there would be no hike in coal prices this fiscal. Between April 2007 and May 2008, domestic coal prices increased 35 per cent to Rs 2,551 a tonne.

Of the 182 blocks allocated to the private and public sectors, the Ministry would revisit the allotments and take stringent action, including cancellation, if developments were not up to the mark.

Asked about the ArcelorMittal offer to take up abandoned mines, he said it was not a viable proposition for a large company and they might be handed over to the locals.