Continuing with the theme of 100 days agenda of the NDA-led government, the Supreme Court’s order on coal block allocation has added to the uncertainty surrounding the sector. This is just one of the many challenges facing the coal minister Piyush Goyal. CNBC-TV18’s Anshu Sharma briefs with the details of achievements and the road ahead.
Clubbing the coal and power ministries was one of the best ideas to push the infra agenda of the NDA government. The new minister's mission is to enhance coal production, bring in transparent policies to attract private investments.
So far, Piyush Goyal has managed to get few power projects inaugurated by the Prime Minister Narendra Modi across India, which were initiated by the UPA govt. Goyal has visited 9 states and has had meetings with 8 states in the capital to iron out issues of power and coal sector but a real change is yet to be seen.
However, Goyal's plans could suffer a huge setback as the Supreme Court verdict may derail government's plan to fast-track policy making or attract investment when the domestic industry dependent on coal is bleeding red.
Piyush Goyal had earlier said, “We welcome supreme court order, we will look at auctioning of coal blocks.”
If the government looks at auctioning coal blocks, it will have to start amending laws under Coal Mines Nationalisation Act, bring in a tough coal regulator and rework bid document for auctions. The recent response to coal block auction was tepid industry will have to be taken in confidence before auction is kick-started.
Whatever be the verdict of the Supreme Court on September 1, auction of coal blocks, an increase in coal imports will only lead to a spike in electricity tariff. The government will have a tough time striking a balance to achieve rational electricity tariff and deliver on its promise of 24x7 power supply.
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