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‘After coal block scrapping, we turned crisis into success’

‘After coal block scrapping, we turned crisis into success’
Power and coal minister Piyush Goyal on Thursday said the transparent coal auction process was being appreciated the world over and it was a new beginning in the development history of the country.

“A success was made of the biggest crisis in the sector following the cancellation of 204 blocks by Supreme Court in September last,” Goyal said at the Conference of Power, Renewal Energy and Mines of Ministers of States and Union Territories.

A transparent process for auction was evolved using IT applications and an estimated revenue of Rs 1,71,961 crore was likely to be raised from 29 coal mines already auctioned. Apart from this, royalty of Rs 20,620 crore and upfront payment of Rs 930 crore accrues to the state, the minister said.
Tariff concessions to the tune of Rs 69,310 crore to consumers would be achieved from 12 blocks auctioned for the power sector, he said. Auction money would flow to the states from 38 mines allotted to government companies with Rs 65,573 crore as revenue and Rs 76,281 crore as royalty.
The ministry has also finalised a one billion tonnes production plan for Coal India Limited to be achieved by 2019-20.

Coal dispatch to power sector from CIL/ SCCL sources had increased by nine per cent, the minister pointed out. He further said that Standing Linkage Committee (SLC) has decided that linkage granted to old plant shall be automatically transferred to new plant of nearest supercritical capacity.

An Inter-Ministerial Task Force was constituted last year to review the rationalisation of linkages and it submitted its report in February this year following which its States-I recommendations are under implementation.

However, the government aims to provide round-the-clock cheap electricity to everyone across the country, Power Minister Piyush Goyal said on Thursday.

“The states have been asked to prepare action plans (that are) specific to their particular states to ensure provision of 24X7 power to all,” Goyal said while addressing a conference of Power, Renewable Energy and Mines Ministers of states and union territories here here. Andhra Pradesh and Rajasthan have already prepared their action plans. Other states have also taken it up and all documents are likely to be completed by December 2015, he said.

Goyal said a record power generation capacity of 22,566 MW was achieved during 2014-15 as against a target of 17,830 MW. Actual power generation has been 1,049 billion units (BU) against a target of 1,023 BU in 2014-15, registering a growth of 8.5 per cent over 2013-14, he added.

He asked the state governments to evolve a transparent procurement plan by putting in place e-procurement and tendering mechanisms to take advantage of the available power. “There is sufficient power available, so please buy it through proper mechanisms to meet the aspirations of people and the industry,” Goyal added.

The government has taken several initiatives to improve the health of distribution and focus on transmission and sub transmission of power, Goyal said. The Deendayal Upadhaya Gram Jyoti Yojana for rural feeder separation, strengthening of sub-transmission and distribution network in rural areas was approved in November last with an outlay of Rs 43,033 crore, including a budgetary
support of Rs 33,453 crore, he said.

Integrated Power Development Scheme has been initiated for strengthening of sub-transmission and distribution network, while 100 per cent metering in urban areas was also approved in November last year with an outlay of Rs 32,612 crore including budgetary support of Rs 25,354 crore, he said.

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