Domestic coal could soon become costlier as the government looks at ways to narrow the existing gap between imported and domestic coal prices. With increasing pressure on domestic coal,the supply of which is failing to match demand from the power sector,the Planning Commission has said that the gap between imported coal,available at $4-4.2 per mmBtu,and domestic coal,at $1.76 per mmBtu,was discouraging imports and heightening demand for domestic coal. This was brought to the notice of the Prime Minister by panel member (energy) Bal Krishna Chaturvedi who made it clear that the shortfall in demand for domestic coal was likely to reach unsustainable levels if timely corrections are not carried out. He pointed out that the 12th Plan may face coal shortage with no coal available for the 28,000-MW of linkages granted till November 08. The Commission member also said that applications for another 1,00,000 MW were pending with the power ministry apart from pending requests for captive coal from power utilities. The panel said that the countrys import requirement was 29 MT this fiscal,which would spiral to 50 MT in 2011-12 and is likely to be 120 MT by 2012-13. What is more,of the 203 captive coal blocks that have so far been allocated with combined reserves of 26 MT,only 92 blocks have commenced operations with a projected production of 49 MT by 2011-12,Chaturvedi told the PM. A committee should be set up to suggest measures and monitor implementation to address the problems of coal and gas,which should periodically report to the CCI, he said. The Commission,in its policy prescription,said the government should plan for augmenting coal production by 100 MT while chalking out an organised plan for coal import with a mix of long-term,spot contracts coupled with price pooling.
