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A lower budgetary allocation in FY20-21 will lead to a substantial shortfall in completion of projects under the Ministry of Coal, according to the Standing Committee on Coal and Steel.
“With the reductions in annual budgetary allocations, the Committee apprehends that it would lead to substantial shortfall in competition of projects/schemes/activities of the Ministry of Coal during the year. The Committee, therefore, recommended that the total plan allocation be reviewed and enhanced allocations be sought at the revised estimate stage,” the Standing Committee on Coal and Steel said in its report on the demand for grants 2020-21, relating to the Ministry of Coal.
“The Committee apprehends that there would be shortfall in the utilisation of funds by the Ministry of Coal, besides North-East component, during 2019-20,” the report added.
The Ministry of Coal had projected an outlay of ₹2,610.50 crore for its central sector schemes during 2020-21 which was scaled down to ₹819.98 crore by the Finance Ministry. This year, the allocation is even 25.25 per cent less than the Budget Estimate of 2019-20 of ₹1,097 crore.
Outstanding dues
The Standing Committee also red-flagged the outstanding dues of Coal India Ltd (CIL), Singareni Collieries Company Limited (SCCL) and NLC India Limited (NLCIL). As of January 2020, the dues to CIL stand at ₹12,423.36 crore;to SCCL at ₹ 4,061.85 crore and to NLCIL ₹6,286.91 crore.
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