ACPET, INC-WMC holds consultation with stakeholders on reforms for coal sector

New Delhi: With a view to suggest an integrated approach for India to reach its Net Zero emissions target by 2070, Ashoka Centre for a People-centric Energy Transition (ACPET) is preparing a policy document. On Monday, ACPET and the Indian National Committee of the World Mining Congress organised a stakeholder consultation on coal reforms proposed in the draft document for 2047. During the meeting, suggestions on coal reforms were invited from stakeholders drawn from across the sector — coal producers, captive coal prosumers, power utilities and conventional and renewable Independent Power Producers (IPPs).

ACPET intends to present the policy document to the government in due course of time.

Coal sector & energy transition

Former Coal Secretary and Petroleum and Natural Gas Regulatory Board’s (PNGRB) current Chairman Dr Anil Kumar Jain gave a presentation on the reforms proposed by ACPET in its draft policy document. Pointing out that the draft policy has a horizon of 2047, Dr Jain said that the coal sector has a small window during which it needs to grow the production manifold and then “craft its own demise.”

Addressing stakeholders, ACPET’s Director Leena Srivastava stressed on the need for an integrated policy approach for energy transition. “Coal has played an important role in ensuring India’s energy security for a long time. Energy security and resilience need to be kept in mind while chalking out India’s energy transition,” she said.

M Nagaraju, Additional Coal Secretary, emphasised on the need for policymakers to focus on the next generation of reforms for the coal sector. While terming the opening up of the coal sector for commercial coal mining as the beginning of the reform phase for the coal sector, Nagaraju stressed on the need for price discovery in the coal sector through a market-based mechanism.

ACPET Integrated Energy Policy draft

The ACPET draft policy has proposed addressing issues pertaining to infrastructure for the movement of coal, stating that there is large potential for utilising the marine transport option. The policy document has suggested a gradual replacement of coal cost pass-through with free markets. It has proposed that notified price coal and linkages should move away gradually and shift to market-determined prices for the creation of a free market.

Keeping in mind the imperative of energy transition, the draft policy has suggested robust mine closure frameworks which must be put in place today to ensure funds are available for mine closures long after revenue streams stop flowing to the coal sector. It has also suggested utilising the GST compensation levied on coal for the purpose of energy transition and re-shaping the sector after the transition cycle kicks in.

The stakeholder consultation was attended by participants from companies like NALCO, JSW, Adani, Tata, ACB Ltd, MOIL, JP Power, SCCL, JSPL, MECL, Global Energy Alliance and State Bank of India (SBI). The eminent dignitaries present on the occasion included NTPC Chairman Gurdeep Singh, former Coal India Ltd (CIL) Chairman and current Chairman of Jindal Power Limited AK Jha, former NCL CMD and current Advisor to NTPC PK Sinha, among others. At the end of the consultation, Peeyush Kumar, OSD (Clean Coal Technologies), Ministry of Coal, and Treasurer (INC-WMC), thanked the speakers and the representatives of all organisations for contributing and participating in the consultation process.

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