GOVERNMENT OF INDIA

MINISTRY OF POWER

LOK SABHA

UNSTARRED QUESTION NO: 4957

ANSWERED ON:02.09.2011

SUPPLY OF COAL TO POWER COMPANIES

HARSH VARDHAN

(a) whether the Indian power generating companies are facing crisis due to various restrictions imposed by several coal exporting countries of the world on export of coal;

(b) if so, the details thereof;

(c) the name of countries, where Indian power generating companies have already been holding shares in ownership of coal mines;

(d) whether the Government proposes to revise current policy regarding power generation in the country in view of crisis of coal supply; and

(e) if so, the details thereof?

Will the Minister of POWERbe pleased to state:-

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI K.C. VENUGOPAL)

 (a) & (b):Some Indian power generating companies have informed that they are facing the problem of increase in price of imported coal due to new Regulation/taxes on export of coal in the coal exporting countries as per details given below: (i)Removal of tax rebates on export of coal by China. (ii)Regulation by Government of Indonesia issued recently which prohibits sale of coal including sale to affiliate companies, below bench mark price. The said Regulation requires that all existing contracts be modified by September, 2011 to comply with the new Coal Pricing Regulation.

(c):Some India power Generating companies or their group companies hold shares in ownership of coal mines or have acquired coal mines in Indonesia, Australia and South Africa.

(d) & (e):The target for electricity generation is fixed on a year-to-year basis keeping in view the performance of existing units and their maintenance programme, contribution expected from the new generating units programmed to be commissioned, availability of fuel, water, etc