Coal needs dedicated freight corridor: CIL
Coal India Ltd. (CIL) Chairman and Managing Director, S Narsingh Rao Thursday said that transportation logistics like railway connectivity is posing a major constraint for coal production.
Rao addressing the valedictory session of the CII Global Mining Summit 2012 said that the high freight cost has a significant impact on the production and therefore a dedicated freight corridor is required for transportation of coal.
"The challenge posed by transportation hazards can be dealt with the development of as many power stations as possible in close
proximity." said Rao.
There is a huge deficit in coal production presently in the country which cannot be achieved by import alone.
"Land acquisition, rehabilitation and environmental sustainability are some of the concern areas that need to be addressed." he said.
With a target of production of 680 million tones of coal in the 11th five year plan, 540 million ton has been achieved which leaves with a huge deficit to be bridged.
In a country where 70 percent energy generation comes from coal, focus must be given to increase the per capita power consumption, Rao noted.
Rao said that it is time for India to create a new roadmap and expressed hope that a revolution for the coal sector is need like the digital revolution in India to ramp up coal production.
He also added that CIL and its subsidiaries have been greatly benefited from the interactions in the summit and exhibition.
Consul General, Consulate General of the United States of America in Kolkata, Dean R Thompson said that U.S. exhibitors had given a big boost for building mutually rewarding partnerships with Indian companies.
Thompson asserted that accelerated growth in the mining of coal and other minerals will be important to boost the growth of the Indian economy.
He added, "Technology is a key component to India's ambitious growth plans in the mining sector. India has the potential to draw an investment of about USD 30-40 billion in the next decade."
Past President and Chairman CII Trade Fair Council, Rajive Kaul said, "With 9 sessions, 50 speakers, 400 delegates, 218 exhibitors, a elaborate buyer-seller meet between mining companies and equipment manufacturers and 4000 visitors in the first two days, the event has been received with overwhelming response."
Kaul also suggested the formation of a task force at the regional level to facilitate growth and development of the mining sector.
Chairman, CII Mining and Construction Equipment Division V K Arora said that the Summit laid out the policy and regulatory imperatives to boost investment into the mining sector, improve and harness new technology and the processes and practices required to make India a global leader in mining.
Arora said that certain vital action points that need to be followed included areas like technology development, safety concerns of workers, and development of supporting infrastructure.
Arora added that once the Mines and Minerals Development and Regulation (MMDR) Bill gets properly implemented it will promote new investments in exploration and increase the availability of minerals.
Deputy Chairman, CII Eastern Region Sudhir L Deoras said, "We have had two days of discussions during which many vital areas have been explored and new ideas have come up. Most important, he stated that the summit had helped to evolve a roadmap for the mining sector in India."
He stated that it could help create as many as 13-15 million new jobs and in terms of tax revenues and other revenues to the government, there is potential for as much as USD 50-70 billion worth of contribution.
"This mining summit has been a demonstration of India's advanced capabilities in the mining sector," added Deoras.
Past Chairman, Mining Construction Equipment Division Madan Mohanka said, "India is aiming to move the mining sector's share in GDP to 8pc . The mineral sector contributes significantly to a country's economic growth from its present level and this presents ample opportunities to foreign players."
He said that the mining industry is looking forward to increased investments from both domestic industries as also from foreign partners to unleash the potential of this sector.
While two day summit concluded Thursday on a high note, the international mining and machinery exhibition will witness further interactions and deliberations till Dec 8 here.