Suresh Prabhu-led group suggests opening up of coal sector

The Advisory Group for Integrated Development of Power, Coal, and Renewable Energy has suggested that opening up of the coal sector and upgradation of public behemoth Coal India Limited (CIL) and its subsidiaries will increase domestic production of the dry fuel.

The Suresh Prabhu headed Group submitted its report suggesting measures for enhancement of coal production in the short, medium and long term to power and coal minister Piyush Goyal on Monday.

The Group, set up on June 25, has called for certain improvements in CIL and its subsidiaries, including Central Mine Planning and Design Institute Limited.

The report emphasises the need for opening up the coal sector to supplement the domestic production of CIL and a few other companies.

It touched upon the issues of coal block auction Process, coal linkage rationalisation and swapping of coal linkages and stressed on the need for urgent action on coal linkages to power plants already commissioned and likely to be commissioned by March 2015.

"Various options should be explored to develop Railway infrastructure from coal mines to main Railway system, including through a JV company on infrastructure by CIL," the report states.

The report also called for expediting reforms in the distribution sector with targeted actions, including public-private partnership in distribution.

"There is also a need for enhanced role of and improvements in working of CEA (Central Electricity Authority), amendments to Electricity Act, tariff policy and standard bidding documents," the report further stated.