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Mittal, Jindal Power chairman Naveen Jindal and National
Thermal Power Corporation chairman and MD Arup Roy
Choudhury were present at the meeting.
The electricity shortage was as much as 7,000 MW in May. Goyal directed Coal India Limited (CIL) to step up production from
existing mines, increase supplies to power plants by reducing
the quantity offered in e- auctions and address the issue of fuel
quality. Goyal added that the issue of quality of coal was also
discussed with the private power producers and other stakeholders.
Power generation has suffered as CIL has been unable to meet
production targets for reasons, including delayed approvals for
new mines. Importing coal to make up for the shortfall is expensive and utilities are not always able to pass on the higher
costs to consumers.
CIL, the world's largest coal producer, sells about seven per
cent of its production through eauctions, where smaller,
Non-power users walk away with most supplies as electricity
generation companies do not bid aggressively in view of tariff
caps. About 60 per cent of India's installed generation capacity
uses coal. The minister asked CIL to increase supplies of the fuel
to power stations and said that projects where construction is
complete should get preference in allocation.
"We discussed the quality of coal supply and asked Coal India to
allow third-party inspection before loading of coal to all buyers
of coal across the country. The third- party inspection of supplies
of coal from the mines ... is aimed at reducing complaints," Goyal
said. "We are also going to do this on the unloading station
(power plant) on an experimental basis for three months for the
stateowned generating stations to see if the process works well."
Reacting to the reduction of eauction coal, a Coal India official
said, " The priority is national interest. Our purpos R