Lack of demand for power is a serious concern for the coal industry and the government is examining this conundrum, according to Coal Secretary Anil Swarup, who has suggested a relook on the government’s ambitious one billion tonnes of production target for fossil fuel by 2020.
“For me the serious concerns are: Number one, there is hardly any demand for power. What we will do? We are planning to produce one billion tonnes of coal by 2020. What will I do with that coal,” said Coal Secretary Anil Swarup.
He suggested that the need to increase this demand for power is very important because, currently, per capita consumption of energy in India is equal to the per capita consumption of the US in the late 90’s. “The demand has to go up,” he said.
In fact, in the current financial year, coal production has had to ensure that coal does catch fire at the pit heads, where much of the stock lies unused. “On 31st of March this year India had surplus of 56 million tonnes (MT) as inventory at pitheads and around 32 MT at the power plants, as on March 31, 2016.
“I would rather be in this situation than what I was in a couple of years ago, when everyone was running around… to reach out coal to these power plants. I am glad we are where we are,” said Swarup. The government’s focus has now shifted to the quality of coal, he said. State-owned Coal India (CIL) which amounts for over 80% of domestic coal production is eyeing one billion tonnes of coal production by 2020. Colin McDonald Womens JerseyShare This