Shekhar Srivstava  

Sriprakash Jaiswal minister of state for coal

What are the ministry’s plans to overcome the current coal shortage? What is being done to increase production? What is the current target and how much of this target has Coal India met till date?
Our main focus is enhancing coal production – we have a target of 550 million tonnes this year and have already achieved 96.12 million tonnes, which is 11 per cent more than last year and I am sure we will fulfil this year’s target without difficulty. The biggest constraint we face increasing in coal production is environmental clearance which takes long, but I have talked to the environment minister Jairam Ramesh and he has assured me of clearance within six months. Another major constraint is land acquisition which is again a time-consuming process. I recently met the chief minister of West Bengal and the governor of Jharkhand and have suggested the formation of a committee to fast track land acquisition. This committee would include officers from state governments, coal companies and the district magistrate of the area and would work towards clearing land acquisition within six months. I also propose to follow the Haryana model for land acquisition in which compensation is paid for 30 years. In order to ensure that the country’s future coal requirements are met, we have acquired coal blocks in Mozambique, Malasiya and Australia through our new venture Coal Videsh.   

Talking about disinvestment, how much money you plan to raise through public issues? Which companies will be put on the block? What is the timeframe for disinvestment?
I will soon meet Prime Minister to discuss Coal India’s disinvestment. The board has recommended five to 10 per cent sale of government equity. All the eight subsidiaries of Coal India will also be put on the block for disinvestment including Bihar and Central India Coalfields Ltd, Central Coalfields Ltd, Eastern Coalfields Ltd, Western Coalfields Ltd, Central Mine Planning and Design Institute Limited, Northern Coalfields Ltd, South Eastern Coalfields Ltd and Mahanadi Coalfields Ltd. Coal India was given Navratna status last year and it is mandatory for a Navratna company to list within three years, so the company has to go public before October 2011.  

Are there any plans to restructure Coal India before the public issue?
We have already started the process of restructuring the company to tackle issues like corruption and non-performance. For instance, all officers who have held the same post for more than three years will be moved; another major step taken to revive the company is to stop the theft of coal. West Bengal and Jharkhand have stopped theft by almost 50 per cent. I am also reviewing the deployment of Central Industrial Security Force (CISF) at the coalfields.  

You have talked about an independent regulator for coal. What will be the role of the regulator as sector continues to be dominated by government-run companies?
The basic idea is to ensure transparency and to set standards for the coal industry. The regulator will consist of a panel of five experts drawn from the energy and mining fields. The panel will regulate mining, production and supply of coal; determine pricing norms for washed coal and other coal products; set and enforce standards of performance and operational norms for coal mining companies. Among other responsibility will be ensuring orderly and efficient movement of coal from producers to consumers. The regulator will also adjudicate in disputes among producers and also those involving producers and consumers and may, where appropriate refer the dispute for arbitration. We are in the process of evolving norms for closure of exhausted mines – the regulator will monitor and enforce closure of these mines as well as develop a mechanism for funding the cost of closure.  

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