Coal Directorate on The Anvil: Modi Government Stresses On Regulation

Coal Directorate on The Anvil: Modi Government Stresses On Regulation

Following the recent order by the apex court that coal allocations are to be cancelled, the Modi government is looking to set up a regulatory body which is like a Directorate General of Coal similar to the agency which covers hydrocarbons. A strategy is being put together to auction coal blocks which have been taken back from private firms. The new office is expected to “undertake similar sort of activities like the Directorate General of Hydrocarbons (DGH)," an official quoted by ET said.

The DGH or the Directorate General of Hydrocarbons was established in 1993 through a government resolution for sound management of oil and natural gas resources through a multifaceted perspective incorporating the environment. The aim of the DGH was the implementation of NELP or New Exploration Licensing policy through oil and gas auctions. It also opened up new avenues for studying non-conventional sources of energy.

The proposed agency will receive help from the Central Mine Planning and Design Institute Ltd according to the ET report. Central Mine Planning and Design Institute Ltd is a Coal India subsidiary which has immense data regarding coal blocks in the nation as well as reserve date for almost all the blocks.

"There are a few blocks in the list which do not hold reserves that are economically viable to be mined. These blocks need to be merged with the existing large blocks," said a CMPDIL official, according to an ET report. The government had introduced an ordinance to re-auction the coal blocks which have been cancelled and it is the first step forward by way of policy actions to rev up the power sector, a report by India Ratings indicated.

This online e-auction is likely to yield positive actions from project sponsors as well as companies and lenders for the maximisation and capitalisation of opportunities in this sector. Hopefully the DGH would not be forgotten in this process. Renewable energy sources are the only hope for India's future. Giving our population and growing need for fuel and the limitation of the resources, non-conventional sources of energy hold the key to the resolution of India's energy crisis.

Coal allocation has been a source of contention and much has undergone as a result of this. But fossil fuels are not the solution for the growing lack of fuel and energy sources. Using solar energy as well as other forms such as wind energy and tidal energy is the perfect way to bypass the limitations of fossil fuels. Just as LED lighting has caught on so quickly because it is energy efficient, so too will the advent.