The Federation Chambers of Commerce and Industry on Wednesday said that coal pool pricing can only provide respite in a short-term horizon. The Cabinet Committee of Economic Affairs (CCEA) on Tuesday gave an ‘in-principle’ nod for the coal pool pricing mechanism.
“What we should not miss is that pooling of coal prices results in subsidisation of expensive imported coal by cheaper domestic coal. In addition to greater incomes to other nations, this will also mean creation of more jobs in foreign lands. Besides, this will further reinforce the inherent inefficiencies in the present exploitation of our domestic coal reserves,” said Naina Lal Kidwai, President of FICCI.
According to FICCI, coal sector needs to be strategically developed and no quick-fix solution can work to meet the long-term goals. Restructuring of Coal India and divesting the Government’s stake in the miner to 51 per cent in tranches will enable it to progress.
In addition, opening up of coal exploration for commercial mining to bring in private investments would improve efficiency and accelerate production.
Competitive bidding of coal blocks and advent of mine developer-cum-operator licences are some of the ways to bring in competent players to the sector, FICCI said in its statement.
“Techniques and procedures which reduce manual operation and are environmentally benign are needed to be adopted.”