Govt asks Coal India to liquidate pithead stock

Kolkata: The government is pushing Coal India to liquidate about 40 million tonnes of unsold coal piling up at pitheads of mines.

"Coal India is unable to sell more coal. Evacuation of coal is a problem as we are unable to stock further. I have talked to Coal India chairman and discussed how to liquidate the coal stock," Union Power and Coal Minister Piyush Goyal said here.

"I have said get this coal out so that production does not fall," he said at a function organised by the Indian Chamber of Commerce.

The Minister indicated that he would not mind if price of pithead coal was reduced to liquidate the stock, but added that he does not want to intervene in the pricing decision of CIL.

Goyal did not revise the coal production target of 1.5 billion tonnes by 2020.

Of this, CIL is expected to produce one billion tonnes, but production may be affected if there is lacklustre demand of coal from the industry.

The minister said he was able to reduce stress in the power sector by resolving issues facing thermal power plants with 30,000 MW capacity.

Goyal said that government was working on structural and fundamental changes in the economy.

Speaking about the cancelled fourth round of coal mines auction, the Minister said he would wait till market sentiments revived.

Regarding the power sector, he said the 'Uday' scheme will solve the problems facing state discoms.

He said the ministry was exploring ways to extend the benefits of 'Uday' to states which are unable to unbundle their utilities.

West Bengal Chief Minister Mamata Banerjee had verbally assured him that the state would join the scheme, he added.