Union Coal secretary Anil Swarup on Friday said the Centre adopted the online auction process to ensure transparency even as he claimed that the government has taken initiatives to increase coal output.
He said the country recorded an incremental growth of 32 million tonnes of coal in 2014-15 that was more than the cumulative growth of 31 million tonnes during the previous years.
Coal production continues to grow at around 9.5 per cent during the current fiscal year, Swarup said while delivering a lecture on ‘the coal story’.
Due to consequences of increased production, thermal power plants have an average inventory of coal for more than 25 days as against 7 days last year, he said.
Import of coal has already started receding, he further said. Stressing that his ministry has brought total transparency by auction on web portal of the ministry, Swarup said the total estimated amount of revenue likely to be raised in respect of 32 coal mines already auctioned is Rs1,76,313 crore from auctioned blocks. Apart from this, royalty of Rs21,896 crore, upfront payment of Rs 953 crore accrues to the states, he said, adding the auction proceeds to be transferred to the respective state governments. Eastern states would be the biggest beneficiary and would financially empower them, Swarup said.
Admitting that there is a huge gap in supply and demand of coal in the country, Swarup said India has reserves of more than 300 billion tonnes, yet ‘we are unable to meet our requirements’.
“Crisis of coal production had risen in August-September 2014 when the Supreme Court in a judgment cancelled allotment of 204 blocks due to non-transparent mechanism for allocation of blocks, a discretionary method, and loss to the exchequer/windfall for private sector,” he recalled.
“The Coal Ministry had managed this crisis by evolving a transparent process of auction using IT applications, setting up an internal team, appointing nominated authority ‘judge or a bureaucrat’, engaging expert external agencies, MSTC and SBI Cap," he elaborated.
The Coal Secretary also elaborated his ministry's initiatives for increasing coal production, ensuring process of transparency, online electronic auction process, and the state government's slackness in cutting transmission and theft losses in power while generated through thermal plants.
He also advised Rajasthan government to allot land for a power plant based on lignite in Bikaner to avoid unnecessary delay and waiting for coal, as this could be a serious problem for this state in near future if it did not act on Friday.
On a question when asked by a senior IAS (retired) officer Dr R Bhanawat whether the Ministry of Coal took up these measures and initiatives after alleged coal scam, the secretary said, ‘NO’.
“I have planned the e-auction after consultations to bring transparency in the system and avoid any allegations," he added. He further said, “More than 2,000 hectares of land is acquired in past one year, and 41 environmental clearances were obtained.”