New Delhi, Aug 7: Pointing out that coal was one of the major sources of energy for India, Confederation of Indian Industry recommended that to increase the domestic coal production, steps have to be taken to scale up captive mining.
CII believes that it is necessary to identify coal blocks outside of PSU"s immediate development plans and offer them to captive producers to augment coal production to bridge the supply-demand gap.
Since the companies involved in captive mining portrays that uneconomical and 'difficult to work" blocks are allocated to captive producers there is a hindrance to the domestic production, CII noted before proposing the ways to implement the recommendations.
Production through captive mining would require the exploration data is brought in public domain and the allocation made to serious developers through a transparent process.
Appointment of regulator who could undertake both upstream allocation of captive coal blocks and monitor the development and production phases so that coal producers become accountable would build transparency.
There is an immediate need to introduce streamlined, documented and time-bound procedures to speed up forest and environmental clearances and set reasonable time limits for various approvals, including mine leases, CII said along with the pointing out the need for a regulatory intervention soon.
There can an increase in the number of players in the coal sector and opening up coal-bearing areas in the Coal sector that is increasingly dominated by the Public Sector Undertakings to reduce the demand supply gap.
Apart from these interim measures, CII has put forth that amend the existing laws to allow private and foreign companies to mine, produce, and freely market coal could prove beneficiary.