Par panel suggests coal, power ministries to chalk out strategy for coal blocks allocated to CPSEs

A parliamentary panel has suggested to ministries of power and coal to chalk out a plan and set up special purpose vehicle (arm) under each central public sector undertaking mainly in the power sector to develop coal mines.

“The committee desires that both the ministries, power and coal, should work in tandem in this matter and jointly formulate a strategy and evolve a specialised mechanism or a Special Purpose Vehicle (SPV) within the ambit of each such CPSU who have not been able to develop and utilise these earmarked coal blocks,” the Parliamentary Standing Committee on Energy stated in its 18th report tabled in Parliament on Thursday.

These Power Sector Undertakings had no previous experience in the field of coal mining but they applied for these coal blocks, as there was a shortage of coal, it noted.

Since the development of coal blocks and mining is a complex matter requiring expertise not entirely available with the CPSU, the committee would urge the Ministry of Coal also to step in and try to do handholding of the CPSUs who have been allocated coal mines but are unable to develop and utilise them, it stated in the report.

It noted a total of 65 coal blocks have been allocated to power sector under various Acts.