This summer’s coal crisis was met with increased production. Coal Ministry is trying to ease the working of private companies in mining
ani photo
If anyone had to face the heat this summer, it was Prahlad Joshi—the country’s Minister of Coal, Mines and Minerals—in panic over power generation companies as their coal stocks started depleting rapidly. At the beginning of the summer, the demand for electricity increased in tandem with that unlocking of the economy and thus the demand for coal to run thermal power plants. Joshi had no option but to pursue the public sector Coal India Limited (CIL) along with other private miners to increase production. In April, the country added 66.2 million tonnes of coal. For the future, Joshi got environment clearance for 20 mines with an annual capacity of 22 million tonnes. In addition, 36 more mines with a sanctioned capacity of 333 MT are under various stages of development.
cover story , challenges ahead
Joshi has been inviting private investment through liberalized commercial mining. 42 mines have been auctioned, but most private companies still consider lack of data reserves for coal and minerals, poor land laws, low demand (this year’s spike is an exception) and export restrictions as major constraints. The dominance of CIL receiving all projects on nomination (without competition) basis is also discouraging. However, Joshi is working to ease the problems of private investors. Last year, he reformed the Mines and Minerals Act, relaxed compliance, opened more avenues for business and removed several procedures.
Politically, Joshi is close to PM Modi and Home Minister Amit Shah as well as Dattatreya Hosabale of the RSS. He is well-known to the party’s top leadership for his insight into Karnataka politics. He is also considered as the architect of BJP’s victory in the recent assembly elections in Uttarakhand.
