Govt asks state gencos to buy coal from CIL

The appeal comes as CIL was unable to find buyers for its coal.

The Dollar Business Bureau

The government on Thursday asked the state-owned power generation companies to halt fuel imports and purchase coal from Coal India Ltd.

The appeal comes in the backdrop of CIL’s inability to find buyers for the coal produced by the company. Many power companies have preferred to import coal from the overseas markets than buying it from CIL.

“We have coal but there aren’t many takers for it. It is in this context that let me request the delegates from the states which are currently importing coal, that they should immediately stop the imports because Coal India will offer coal to them,” Coal Secretary Anil Swarup said, at the inauguration of a two-day conference on power.

The government aims to produce a billion tonne of coal by 2020. It says it needs plans for a realistic requirement of coal in coming years.

Coal India has set a procedure for auctioning coal to the private firms. It would offer eight million tonnes of coal to control the power sector, the government reiterated.

“As far as state gencos are concerned, we are open for discussion, you (gencos) give a number and we will provide you the coal that you want,” Swarup added.

However, some coal blocks allocated to some of the state governments have not started to produce coal yet.

The centre, in the meantime, has taken decisions to rationalise the linkages to cut down on the transportation cost of the coal.

Replying to a question on bad quality of product from coal India, Swarup said, “The company has put in place the regime wherein it has been their endeavor to ensure that good quality coal is made available. At least the quality of coal that is professed to be given is given to state gencos.”

The Dollar Business Bureau - Jun 17, 2016 12:00 IST