Armed with a comfortable majority, the BJP-led NDA Government which is to officially assume power at the Centre on May 26, is likely to trim down several "offshoot" ministries having related characteristics. Accordingly there are indications that Coal and Petroleum Ministries as well as Power Ministry may be merged into a single unit and a similar treatment could be given to Mines and Steel Ministries.
Sources privy to the development said that with the BJP having more than adequate numbers in lok Sabha, it may go for 'super ministries' where several of them could be trimmed down to a manageable number.While these are proposals as of now since the BJP Government is yet to take charge formally, sources did not rule out the possibility of some of the 'unnecessary' ministries being merged.
The Steel Ministry could be merged with the Mines Ministry sources said, adding that as coking coal is an essential raw material required for producing steel, if both the ministries are merged, there could be better synergy among them for sourcing the key resource.
Similarly the Coal, Petroleum and Power ministries could also be merged, which if it happens, may help in resolving several contentious issues prevailing among them, a case in point being the sharing of coal bed methane (CBM) reserves. Also owing to falling output of gas from the KG D6 basin has in the recent past grossly affected the power sector, especially the gas-based power plants.
The era of coalition Governments at the Centre which began with the United Front Gove rnment's regime in 1996, gave birth to several ministries as key politicians from all the coalition partners were required to be accommodated in the Cabinet.Gradually several ministries spawned over the next almost 20 years in the form of steel, coal, mining, Commerce & Industry, Textile and many others.
Now, sources said, armed with an absolute majority the BJP-led NDA Government is looking at cutting the flab. Moreover, they added that Prime Minister designate Narendra Modi is looking at a smart Government model by setting up 'super ministries' where several unimportant departments could be merged into one.
As a single entity, the mines department would be able to facilitate better availability of coking coal within the country and sources added that India may not be required to import coking coal anymore. Indian steel makers largely depend on imports to meet their needs draining hard-earned foreign exchange. SAIl alone imports around 20 million tonnes coking coal each year.
India has an estimated 33 billion tonnes of coking coal reserves in which State-owned Coal India ltd (CIl) has 90 per cent share. If Mines and Steel ministries are merged, then more coking coal mines could be unlocked for enhancing the steel production. The key issue of concern is the uninterrupted supply of coking coal, and this could become possible if more reserves are mined. Mines and Steel ministry becoming a single entity could ensure this, sources said.
In fact last week SAIl Chairman CS Verma in an industry chamber's meeting, had said that "though adequate iron ore and coal resources are available in the country, ironically, ensuring uninterrupted availability of these two key raw materials for the industry remains a challenge".
As far as Coal and Petroleum Ministries are concerned, the CBM reserves issue has led to a lot of locking of horns over their mining. As CBM is normally found in coal blocks, there has been a lot of controversy as to which ministry should develop these blocks as Petroleum Ministry claims right on the gas content while the Coal Ministry claims that as reserves contain the dry fuel, they should be given the first right on them.
If merged along with the Power Ministry, their prevailing concerns could be addressed on a common ground as the concern of a single Energy Ministry, sources said.