The size of the global construction industry by 2022 will be a whopping $12.7 trillion. India will contribute about $640 billion to this, aided of course by government initiatives in infrastructure development and affordable housing for all. In addition, the latest move of bailing out inefficient and profiteering private builders with ₹25,000 crore of the taxpayers’ money will also boost the GDP. The sector continues to be a steady contributor to India’s GDP and employment growth for several decades now.
Brushing aside allegations of profiteering made against it by private power producers, state-run Coal India has said it has been struggling to keep its committed supply under long-term contracts and conducting coal auctions for power plants at the cost of premium in spot market.
Coal India said the allegation raised against the company is baseless and contrary to the fact. It also said it will conduct auction in due course for power plants selling in short-term market without power purchase agreements (PPAs) under clause B(viiia) of amended Shakti Policy.
Private electricity generators have expressed their concern over the latest auction for coal linkage being conducted by Coal India (CIL) for power plants without power purchase agreements (PPAs). In a letter to Union coal minister Pralhad Joshi, the Association of Power Producers (APP) has claimed that the auction methodology is not in line with the recommendations of the high-level empowered committee (HLEC) which was constituted to address issues of stressed thermal power projects.
The Ministry of Coal aims to issue the Notice Inviting Tender (NIT) documents before the end of the current financial year to begin the process of commercial coal mining auctions.
According to a top Coal Ministry official, this change would require an approval of the Union Cabinet, followed by an Ordinance or a Bill depending on the urgency and subject to the House being in session.