India faces power shortage by H Janardan_Prabhu


									Power shortage- India - 2012
• Indian Prime Minister approved a
  decision in July 2005 that the ministry of
  coal should continue to allot blocks for
  captive mining through the screening
  committee procedure until competitive
  bidding was made operational.
• The minutes of a meeting chaired by then
  principal secretary to the Prime Minister,
  revealed that the then coal minister, went
  with the decision because he expected
  delays in implementing competitive
• When asked for comments, the PMO
  cited an answer by the PM in
  Parliament: “It was noted that the Coal
  Mines (Nationalisation) Act, 1973 will
  need to be amended before the
  proposed competitive bidding procedure
  becomes operational.
• This is likely to take considerable time
  and the process of allotment of coal
  blocks for captive mining cannot be kept
  in abeyance for so long.”
• Coal India (CIL) has been steadily increasing its
  production every year. From 70 or so million
  tons in the early 1970s, CIL's production rose to
  about 430 million tons around 2009.
• And then, it abruptly plateaued. In the next
  three years, it added just 4-5 million tons.
It is reported that amid the controversy over the coal mine
allocations to private companies, fresh details are
emerging on how the government own departments and
ministries especially the coal ministry are delaying critical
projects with assured fuel supplies from state-owned Coal
India Ltd. Banks have told the finance ministry last week
that investments worth INR 1,24,745 crore mostly linked to
coal mines of CIL and its sister companies are stuck due to
various regulatory, procedural and environmental hurdles.

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