After a big meeting with the honchos of the power generation business men like Anil Ambani, Chairman of Reliance Power; Gautam Adani, Chairman of Adani Group; Vineet Mittal, Managing Director of Welspun Energy; and Naveen Jindal, Chairman of Jindal Power; Union Power Minister Piyush Goyal today asked the public sector Coal India to increase Coal production immediately.
The country is facing a huge 7000 MW power shortage as of May. Coal India is the world’s largest coal producer. As 60% of electricity produced in India is thermal, additional coal production would mean additional supply to power projects which have been awaiting coal allocation since long. “The projects which are in position to start generation should be given coal first,” said the minister.
Coal India has also been told to reduce the allocation of its produce through e-auction to private bidders from the present 7% to to lesser. Earlier Coal India used to sell produce up to 10% through e-auction. Additional coal production is also encouraged with a view to reduce the import of the commodity from other nations, avoiding dependence and also to save foreign exchange costs.