NEW DELHI | Jun 22, 2016: Investments to the tune of more than Rs 10 lakh crore would be required in coal mining and allied sectors like power, steel and cement to achieve the target of 1.5 billion tonnes of coal production by 2019-20, according to a report.
"India has set an ambitious target of 1.5 billion tonnes (BT) of domestic coal production by FY 2020 and will need huge investments adding up to more than Rs 10 lakh crore in coal mining and its allied sectors like power, steel, cement, infrastructure for logistics, and coal washeries for achieving this goal," the latest PwC-ICC report said.
The government would need to take steps to promote smooth land acquisition, easy availability of water, augment infrastructure for logistics, develop coal washeries, capacity building and skill development to provide the support system for developing a cohesive environment for achieving the target, it said.
Additionally, focused efforts are required from all stakeholders, especially governments, industry players, investors, funding agencies and infrastructure developers, it added.
The PwC and ICC report titled 'Bridging the gap: Increasing coal production and sector augmentation' was launched at the 8th Coal India Summit here.
With the economy poised to grow at the rate of 8-10 per cent per annum, energy requirements will also rise at a substantial level and coal will continue to remain the key contributor.
Coal demand in the country is expected to be in the range of 1.2 to 1.5 BT by 2019-20 and despite being world's third largest coal producer, India is dependent on imports to meet around 20-25 per cent of its coal demand.
As per the report, India has more than 300 BT of coal reserves, out of which around 90 per cent are non-coking coal reserves. Despite this, non-coking coal accounts for nearly 75-80 per cent of the Indian coal imports.
"In order to meet this massive demand and reduce coal import (especially non-coking coal), the government has put coal production in the country on fast track and has set a target of 1.5 BT of domestic coal production by FY 2020," the report added.
(Source: http://economictimes.indiatimes.com/)