Goyal denies coal shortage is to blame for power outages

‘Baptism by fire’ is how Piyush Goyal, Minister of State (Independent Charge) Power, Coal and New and Renewable Energy, terms his first 100 days in the post.

“I have inherited a crisis-ridden sector where power outages are a norm and coal block allocation has been arbitrary,” the Minister said on Sunday, adding that while 18 States have come forward with issues concerning the power situation in their regions, the rest are yet to respond.

The fate of coal block allocations, which will be decided on September 9 by the Supreme Court, is also weighing on him. Though the Minister, while interacting with media across 12 centres (including Delhi) put up a brave face, he said: “At the moment we don't have a Plan B (in case the Court orders de-allocation), but we are keeping ourselves ready for every scenario. Whatever the Supreme Court decides on coal block de-allocation, we will ensure that it is implemented immediately.”

Asked if auctioning would be a possible route for future allocation of coal blocks, Goyal said: “As regards auctioning, it is a primary part of the process of providing coal and we will respect that.”

The Minister reiterated that he was not in favour of a ‘toothless regulator’ for coal, and said that the framework for a stronger regulator is in the works.

On the power crisis, that has been blamed on coal shortage, Goyal said there are no supply constraints. The shortage in production from hydro has led to coal-based plants increasing generation, resulting in higher use of coal in stock.

“In the first three months of the new Government — June, July and August — coal-based generation increased 21 per cent,” said Goyal. The Centre has set a target of 1 billion tonnes of coal production by 2019, as it seeks to provide more indigenously procured fuel to thermal power plants.

On the transmission infrastructure and the financial health of power distribution utilities, he said the Power Ministry plans to rework the financial restructuring package for debt-ridden State electricity boards.

“The Financial Restructuring Package (FRP) was implemented 18 months too late; therefore, it was lacking in a number of areas. We are in discussion with the States to rework the FRP,” he said.

The Government has also launched the Deen Dayal Upadhyay Gram Yojana, with an expected investment of ₹43,000 crore, for feeder segregation of agricultural and domestic power lines in rural India.

Long-term transmission projects worth ₹12,272 crore have also been cleared since the new Government took charge in May.

Meanwhile, the Power Ministry has finalised amendments in the Electricity Act, 2003 to launch a new wave of reforms.

The Minister also said clean energy is a priority for the Government and he wants to set ambitious targets for solar power generation.