Coal sector's outlay increased to Rs 5,299.69 crore

New Delhi, Feb 28 (UNI) The Union Budget for 2007-08 has made a higher allocation for the coal sector to Rs 5,299.69 crore as against the revised expenditure of Rs 4,242.95 crore for 2006-07.

This includes a sum of Rs 250 crore towards plan expenditure which is lower than the previous year's plan expenditure of Rs 300 crore. Out of the total outlay for 2007-08, the allocation towards the non-plan was substantially raised to Rs 5,049.69 crore as against Rs 3,942.95 incurred last year.

The public sector Neyveli Lignite Corporation (NLC) is turned out to be a major benificiary among the coal sector's PSU as a provision was made to provide Rs 2,0069.97 crore towards its modernisation and renovation up from its previous year's expenditure of Rs 945.86 crore.

Coal India Ltd - another PSU under the Coal Ministry received a marginally higher allocation of Rs 2,472.14 crore as against Rs 2,420 crore of the previous year.

However, Singareni Colleries Co Ltd was provided with a marginally lower allocation of Rs 570.58 crore as against the revised estimate of Rs 577.09 crore made last year.

Significantly, while the Finance Minister P Chidambaram made announcements of large scale sops for the social sector but the allocation towards the conservation and safety in coal mines was marginally reduced to Rs 0.01 crore as against the revised estimate of the previous year of Rs 180 crore.

Similarly, towards the development of transport infrastructure in the coal field areas was sharply reduced to Rs 0.01 crore as against the revised estimate of the previous year of Rs 13.81 crore.

The allocation was also reduced towards the lumpsum provision for North East Region and Sikkim from previous year's revised estimate of Rs 30 crore to Rs 25 crore.

The detailed drilling received a shot in the arm as its allocation was substantially increased to Rs 104.50 crore as against the revised estimate of last year of Rs 20.99 crore.

UNI