KOLKATA | July 07, 2017: KPMG will chart out Vision 2030 for Coal India, which is uncertain about the future of coal and wants to diversify. The monopoly has just issued a letter of intent to KPMG, which would soon be followed by awarding of contract following which, the consultant will submit its report in 14 weeks.
PwC, Delloitte India and KPMG were in the race. But KPMG was chosen for the job. In fact, KPMG has prior experience with Coal IndiaBSE 0.50 % when it prepared Vision 2020 for the company a few years ago.
The monopoly invited bids for vision 2030 because coal is likely to decline in India’s energy mix although it is expected to remain the mainstay for several years. Coal India is now looking at diversifying into related energy fields like renewable and has already prepared plans for setting up 10,000 MW of solar generation facilities to jack up its top line. Coal India is also looking at the possibility of entering into mining, metals and minerals.
According to Coal India, the government believes that India does not need additional coal-fired power plants till 2027 because some 50,025 MW coal-based power plants are under construction along with some 100,000 MW renewable power capacity.
In the notice inviting tenders for the Vision 2030, Coal India said: “With government’s efforts to push renewable energy due to international conventions on climate change, increase in carbon cess and other initiatives for lesser use of coal, there is a need for ‘Vision 2030 for the coal sector’, which takes into account the environmental factors such as reduction of carbon footprint, abatement of global warming”.
“While Coal India has performed well in the last several years, the potential for performance of the sector needs to be assessed in light of multiple changes in the energy sector. Hence, the coal ministry intends to assess the long-term vision up to 2030 for the coal sector in India,” the document said.
According to the document inviting bids, KPMG will have to present a draft document of the Vision 2030 within eight weeks. This would be followed by two workshops — one for coal producers and another for coal consumers.
It will then have to upload the draft document online for public opinion. After two additional weeks, KPMG will make a presentation to consumers along with public opinion to Coal India as well as the coal ministry and then submit the final report.
(Source: http://economictimes.indiatimes.com/)