In a stern message to Coal India Ltd, the Centre has asked the world’s largest coal miner to improve efficiency to avoid restructuring.
According to sources, Power and Coal Minister Piyush Goyal has asked the State-run company to improve the quality of its coal by December 31.
The Coal Ministry had earlier planned to restructure Coal India to improve its operational efficiency.
The company has seven subsidiaries, including Eastern Coalfields Ltd, Bharat Coking Coal Ltd, Central Coalfields Ltd and South Eastern Coalfields Ltd.
According to, Goyal told Coal India coal supplied to power companies should not comprise stones or boulders and it should work towards arresting coal grade slippage.
Experts say coal grade slippage has an adverse impact on power generation. Meanwhile, Minister Goyal is of the view that power generation companies should have the right to appoint neutral quality samplers.
He has also asked Coal India to reduce the quantity of coal sold through e-auction and make that portion of the fuel available to power plants.
Increase production Coal India has been directed to limit e-auctioning of coal to 25 mt this year from 57 mt, sources said.
Last week, at a meeting with private power developers, Coal Ministry and Coal India officials, Goyal asked the miner to make efforts to raise production from its existing mines.
Goyal met top power honchos, including Anil Ambani, Chairman of Reliance Power, Gautam Adani, Chairman of Adani Group, Vineet Mittal, Managing Director of Welspun Energy, and Naveen Jindal, Chairman of Jindal Power, to look for solutions to address the country’s electricity shortage, which was as high as 7,000 MW in May.