The quarterly contraction in India’s growth in the ongoing fiscal is set to end in the third quarter with a marginally positive 0.1% growth, according to the National Council for Applied Economic Research (NCAER).
Coal supply by state-run CIL to the power sector declined by 5.3% to 277.46 million tonne (MT) in the April-November period of the ongoing fiscal. The state-owned company had supplied 292.88 million tonnes of coal to the power sector in the corresponding period of the previous fiscal, according to official data.
Global demand for coal is set to jump 2.6% next year after a record pandemic-led drop this year, as recovering economic activity will lift use for electricity and industrial output, the International Energy Agency (IEA) said.
The government would rationalise the slew of taxes on the coal to make prices competitive against imported coal. “This should be done keeping in view the government’s import substitution targets and make the second round of coal blocks auction more attractive by enabling prices of commercial coal to be competitive in the open market,” said M. Nagaraju, additional secretary, ministry of coal.
The Centre, state governments and coal block allocatees need to come together in a “coordinated and harmonious way” to operationalise the blocks at a faster pace as of the total 98 mines auctioned so far, only 33 are operational, Coal Additional Secretary M Nagaraju said. He added that fast operationalisation of coal blocks will not only reduce the import of fossil fuel but would also prevent the foreign exchange expenditure.