India should rein in its lofty coal output target as power demand is growing at a slower pace than expected, a government policy think-tank said, even as state monopoly Coal India Ltd (CIL) struggles to sell already-mined coal. A turnaround in India's coal sector, from crippling shortages three years ago to a surplus thanks to faster government clearances, is seen as a major success for Prime Minister Narendra Modi.
The production boost means Coal India (CIL), the world's largest coal miner, is for the first time scouting for buyers abroad. But it is sticking to its plans to nearly double coal production to 1 billion tonnes a year by the end of this decade. "A careful assessment of demand for coal-based power is needed so that the over $1 billion annual investment being made by CIL in raising its production capability is not left stranded," the NITI Aayog said in its Draft National Energy Policy released late on Tuesday.
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