Coal demand function of growth of national economy: Govt

New Delhi, Mar 7 (UNI) Coal demand is a function of growth of national economy irrespective of availability of coal from domestic sources, the government informed the Lok Sabha today.

Minister of State for Coal Dr Dasari Narayana Rao said in a written reply the demand of coal has been increasing with the national economy steadily doing well. As against the demand of 460.50 Million Tonnes (MT) as envisaged in the Tenth Five Year Plan document for the year 2006-07 (terminal year of the Tenth Plan), the same has now been revised to 474.18 MT during 2006-07.

He said the Working Group on Coal and Lignite has recently worked out a demand of coal of 731.10 MT in the terminal year of XIth Plan (2011-12) as against the earlier projected demand of 620.00 MT.

Dr Rao also said as against the Compounded Annual Growth Rate (CAGR) of 3 per cent during IXth Plan in respect of coal demand, it is expected to increase to 5.50 per cent (CAGR) during the Xth Plan. Increase in coal production which was 2.53 percent (CAGR) during the IXth Plan has improved to 5.70 per cent (CAGR) during the Xth Plan. As against the projected increase of 9.71 per cent CAGR in coal demand during the XIth Plan, coal production is expected to increase by 9.47 per cent (CAGR) during the same period.

He emphasized that this shows that coal production has been increasing along with the demand. The demand-supply gap is on account of inadequate reserves of coking and low ash non-coking coal reserves in the country.

The Minister said several measures have been taken/ are being taken to bridge the gap between demand and supply. These include 97 mining projects undertaken for implementation by CIL during X Plan, improvement in equipment utilisation and timely implementation of projects. In addition, all new mines are being planned with mechanisation. Increasing productivity in both underground and opencast mines alongwith allotment of 123 coal blocks to various private/public sector companies and emergency coal production for increasing production in existing mines/projects also include the important measures taken in this direction.

Dr Rao also said development of coal blocks involves a gestation period of 3 to 5 years to reach production stage depending on the geo-mining conditions. In case of unexplored blocks, it will take more time, depending on the quantum and depth of drilling to be carried out.

UNI