India Govt to Open Coal Mining to Private Companies

Nov. 20, 2006 – Thermal power plants in the country have so far been starving from lack of adequate coal supplies for meeting the ever-increasing demand for power. This pressing situation had compelled them to make drastic cuts in power generation. However, much to the relief of everyone the situation is going to change for the good. Indian Government has given green signal to private firms to enter the Coal mining sector in a big way. This is thought to end the inadequacy of domestically mined coal, which is partially responsible for power supply shortfall.

The government’s strategy to allow coal mining by standalone companies that have tie-ups with steel, cement and power companies for coal supplies will become operational within the coming month.

In a communiqué to the Coal ministry, law ministry officials confirmed that those mining companies who have supply contracts with authorized users namely steel, cement and power companies, can have mining rights to those coal blocks that is reserved for confined users, even without emending the Coal Mines (Nationalization) Act, 1973.

The move is likely to give further push to coal production and will play a pivotal role in meeting the country’s future demand to a large extent. Estimates by Planning Commission reveal that the demand-supply gap of coal would still stand at a whooping 60 Million Ton by 2011-2012.

RNCOS’ recent report “Indian Coal Industry: Opportunities for Growth (2006)” , talks about the prospects and opportunities for the private sector to get captive mines post deregulations and reforms in Indian coal sector.

Presently, around 143 Indian coal blocks have been recognized for captive mining. Out of these 143 blocks, 74 have already been allocated of which the private and the public sector controls 49 and 25 blocks respectively.

The report also addresses key issues and facts that are important for business success, like

§ Future Outlook of the Coal sector in India.
§ Factors driving changes.
§ Competitive market environment and market leaders.
§ Key Challenges and strategies In Indian Coal Industry.
§ Emerging technologies in Indian Coal Mining Industry.

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For more information visit: http://www.rncos.com/Report/IM0371.htm

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