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Web Exclusive | February 2013

States' plea to Centre to up coal, gas supplies

State governments have on February 5 requested Union Minister of State for Power (Independent Charge) Jyotiraditya Scindia to take up the issue of inadequate coal supply with the Prime Minister and seek his early intervention. At the 6th Conference of Power Ministers of States and Union Territories in Delhi, power minister of the States expressed concern over fuel uncertainty affecting the power sector.

Scindia was urged by the Ministers to augment the availability of coal and gas by increasing indigenous production and creating a suitable policy framework. They said availability of adequate coal was key for sustaining power supply and accelerated capacity addition in a sector dominated by thermal power.

Without availability of coal quantity, as committed by Coal India, the power sector faced a bleak and uncertain future, which was a matter of grave concern for all the stakeholders and required urgent remedial action, they said. They said this would affect not only the value chain of the power sector – generation, transmission and distribution – but also the exposure of funds given to this sector by financial institutions.

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