Aiming to make India self-sufficient in coal, Power and Coal Minister Piyush Goyal today said the target of doubling domestic production from the current 490 million tonnes level was “possible”. He even went a step further and said the country should make efforts to become an exporter of coal by drawing up a clear roadmap for the same. “We have plans to ramp up coal production to a billion tonnes from its current level of 490 million tonnes (MT). It is clearly doable, it is not a fanciful target, they have 200 mines which have not yet opened up, technological innovations can make it possible,” Goyal said.

Out of the total domestic coal production of 565 MT, Coal India produces 490 MT. This is targeted to be doubled to one billion tonnes annually by 2019. The state-run firm will invest Rs 5,000 crore to buy 250 rakes for transporting coal. The minister said India should not remain an importer of thermal coal for power plants but on the contrary should be in a position to supply to the world and increase its own power generation capacity significantly.

Goyal said this after meeting global investors where he assured them that the government will address their concerns. “The investors have had serious concerns in the last 4-5 years like stalled projects, rupee depreciation and uncertain business environment,” he said. However, with the new government in place this has started to change. They are looking at India afresh and going forward the investments in the power sector are going to be quite large and investors both from within India and abroad can see good, robust policy which we are reassuring to all the investors, he added.

Coal & Power Minister- Piyush Goyal in a candid interview to Zee Biz Dy Editor Amish Devgan.

Q1. Sir, the Modi government has completed its 100 days in power. My first and foremost question to you is what do you think are the three major achievements of your ministry during these 100 days?

Answer: I think the most important transformation has been under the aegis of PM Modi and first time in the history of this country the government is functioning as an “organic entity” especially in three ministries that function under my governance. I would like to give an example: Recently, during a meet, Power Secretary had proposed that the cess on coal be increased by 100 percent so that the money can be utilized for renewable energy and we agreed on the same immediately. So, this way when the government functions in synchronization, the policies see the implementation at a greater pace.

Secondly, instead of resolving individual cases or issues we are focusing on policy driven governance which can ultimately benefit common man and thirdly, the power generation from coal in the month of June, July and August has risen by 21.6 percent when compared with the corresponding period in 2013. As you are aware, monsoon had played a spoilt-sport this year hence the power generation through hydel was apparently low. Had we not generated the power using coal, the situation of power in these three months would have been terrible. This is the reason why situation of power generation in the country is stable today.

Q2. PM’s office, Coal ministry and Power ministry has been under fire since the time you have taken over. Sometimes, for the wrong reasons like Coal scams and power scarcity too. Do you believe that you have been able to meet people’s sky rocketing expectations from your government?

Answer: Indeed! We are accountable for every work and we are working day in and day out so as to accomplish out target of 24/7 power to every citizen of this country. The people of this country had given 3650 days to the earlier government; we have not even reached 1/4th of that time period. Jan-Dhan yojna announced recently, separate toilet for girls and boys and our thrust on renewable energy; all these achievements in this short tenure of 100 days, I think is commendable in addition to rationalizing the linkages, technology upgradation in coal sector, improvement in railways sector. Moreover, we have taken a 360 degree view on every ministry.

Q3. Sir, during these 100 days your ministry has been making the headlines. What do you is the reason for the same?

Answer: That is because my ministry is one of the most challenging ministry. Moreover, the responsibility of lighting up the entire country now rests on my shoulders and hence people have great expectations from me. Also, I am enthralled with the level of trust that respected PM has shown in me.

Q4. Zee media had quite recently conducted a mega-survey on the performance of Modi government in 100 days wherein you received 70 percent marks in terms of public satisfaction. Will you be able to maintain the same?

Answer: Indeed,the way our government is functioning, the way ministries are functioning in tandem, in complete synchronization with each other, we are confident that we will not only fullfill but exceed the expectations of the people of this country.

Q5. Sir, let me ask you about some recent controversies. Recently PM Modi had inaugurated of lot of projects in various states. However, the opposition (although they have not been assigned the status of LoP), I mean Congress, asserts that a majority of these projects, power projects were initiated by their party and the BJP is simply giving them green signals or more specifically organizing the ribbon cutting ceremony. Moreover, they give the credit of growth in GDP too, to their party.

Answer: See, a government functions in continuity and let me clarify that a majority of these policies were contemplated during the reign of Vajpayee government. The projects which have been inaugurated in J&K by the honourable PM, as I mentioned earlier, were started during the time of Vajpayee government. The thermal power plant in Karampura was initiated by the Vajpayee government. Let me assert, in the last 10 years not even a single project has been undertaken in Karampura. Let me reiterate; the people of this country are watching the pace with which the Modi government is taking decisions and implementing them. If you are referring to the ‘Jan-Dhan Yojna’, let me tell you that this is an original idea and never existed prior to this in this country. I would rather say that had constructive work been done in last 10 years, 30 crore people of this country would’t have been left without the basic amenity of power, a basic bank account let alone the high rate of unemployment. FII’s have started pooling in great deal of money all because they could foresee the thumping victory of BJP govt.

Q6. You must have heard Mr. Rahul Gandhi’s statement wherein he quoted PM Modi playing drum in Japan whereas the people are starving in India.

Answer: When PM goes for a foreign visit, he represents a country and not the party. 2 lakh 10 thousand crore worth of investments have been committed to us in the next 5 years in addition to the latest technology implementations. So, I can simply laugh off at such crudeness and sarcasm made by the people in opposition.

Q7. Scarcity of electricity is still a major issue in this country. Uttar pradesh is indeed the worst affected and situation in Maharashtra too is grim. Even PM has on various occasions stated that the Coal scam is responsible for this crisis. What are your views on the same?

Answer: As I mentioned earlier, had we not increased the production of coal by 21 percent, the situation in the country would have been worse. With the advent of Modi government the situation in India today is far better. In U.P, the state government used to purchase the power amounting to 377 megawatt till 15th May which stopped on 16th May. On 30th May due to some technical fault the production came to a halt and that is when the state government felt the breeze and resorted to casting aspersions on us. That is when I had to present the facts before the nation, the same day that 377 megawatt was procured by the government.

Q8. Will you meet the minister after state elections?

Answer: Of course. I received a phone call from Mr, Akhilesh Yadav and we discussed on this entire issue amicably. So, I believe that the matter will be resolved soon.

Q9. Sir, your leadership is being questioned. Do you have any major issues with Maharashtra CM Mr Chavhan, as the news is doing the rounds lately?

Answer: He is a very senior leader. I would not like to make any personal comments. The main problem before the nation is related to the coal scam. The nation would question his leadership during his tenure in the centre. A day before Ganesh Chaturthi, PM Modi had received a call from Maharashtra’s CM which I returned immediately to discuss the matter and resolve the matter. In the meeting with Mr. CM, I found that the State government simply wants to pass on the burden to the Centre without taking any note of the situation. I immediately called a meeting of Power Secretaries in Delhi and tried to find solutions with all the five major states facing the problem. Problem actually lies on the disagreement between the private power plants and the state governments and not at the level of the centre and the matter is still in the Supreme court.

Q10. Sir, you had earlier referred to the Coal scam. Mr. Chavhan was earlier the minister in Prime Minister’s Office. Your ministry has time and again said those involved in the Coal scam would not be spared. Do you really feel that the existing scarcity of power has its roots in the Coal scam?

Answer: I have given a small booklet stating the achievement of our government in 100 days to all my officials. I have made a special mention of the legacy that I have inherited from the previous government. If I talk of coal production since 2011, it has only grown at the rate of 1.5 percent CAGR per year making it a total of 4 percent in last 4 years. The generating capacity of coal has increased by 73 percent now. Hence, the scarcity of coal is apparently resulting in the shortage of power. I would like to reiterate all the factors like coal allocation scam, environment policies of the previous government, SEPI plan, environment road blocks which are responsible for power situation in the country today.

Q 11. SC in its verdict has said that all coal blocks between 1993 and 2010 are illegal but at the same time govt appointed Attorney General has appealed to the court to give respite to at least 46 coal blocks?

Answer: I would like to assert that have clearly specified through the medium of Attorney General that we have completed faith in court’s verdict. We have never resorted to such measures. However, when the matter was raised in the court that crores of rupees in investment is held up in these coal blocks, then our Attorney General stated that in no way wish to question the court’s verdict. However, we will try to resolve the matter from the perspective of the banks. 40 blocks are operation at present with a production count of 37 million tonne and this year it is 52 million tonnes,we had simply brought this to court’s notice and in no way tried to influence the court’s verdict.

Q12. Sir, do’t you think this if some blocks do get some respite, it will set a wrong precedence, if one do refer to the 2G case?

Answer: I would not like to comment on the court’s verdict. He have full faith in the the judiciary.

Q13. Zee media’s DNA has unearthed lot of issues. Your govt is presently in power. What are view regarding the disclosure on CBI’s Director Mr. Sinha meetings?

Answer: I believe investigative agencies should be run in an autonomous manner and there should’t be any interference from the government’s side. SC will take the final decision.

Q14. We have made revelations regarding CBI Director Mr. Sinha’s meetings with Moin Quereshi, ADAG Group and Vijar Darda too.

Answer: CBI is an autonomous body. I would not like to comment on these matters. SC will take the final decision.

Q15. What is the biggest challenge that you think you have faced in these 100 days? If I talk of Rajnath Singh’s controversy, there were rumours that a minister from your ministry has leaked these matters. Do do believe this is unfortunate?

Answer: I believe all these news are completely baseless. I believe these is no substance to this news.

Q16. Sir, finally the biggest challenge before your ministry.

Answer: We are in power with complete majority. We will lead this nation to becoming a super power.

Q17. In Bihar state elections, BJP lost terribly, due to Lalu and Nitinsh alliance. There are rumours that such an experiment can be repeated in Maharashtra and Haryana?

Answer: By-polls have there own local issues. So there are certain internal dynamics of each state. We are not at all worried and we will register a majority win yet again.

Q18. In the last few months, major projects have been undertaken in the states where elections are imminent.

Answer: This is not true. It was just that the projects in these states were nearing completion.

Q 19. Sir, your government has been witness to the entire history of coal scam. There have been several kinds of verbal attacks on your government on the notion that such scams are biggest impediment to a positive business environment in the country. How would you like to assure the people of this country that such scams do not bring shame to the nation in future?

Answer: I have also mentioned this earlier on your channel too. I would like to reinstate that we have complete faith in the judiciary. Our government functions with complete transparency and we consider the Supreme Court’s decision as final and do not believe in any kind of interference in legal matters. The government has’t made any appeal regarding any of the coal blocks and we will consider Supreme Court’s verdict as the final verdict.

Eyeing a quick-fix to blackouts, Power and Coal Minister Piyush Goyal today said the government is working on innovative methods that can help more than double electricity generation to 2 trillion units without raising tariffs.

India faced a peak power shortfall of 6,103 megawatts, or 4.5 per cent of the requirement of 1,35,918 MW last fiscal, he said, adding that rationalising fuel linkages and sorting out transmission and distribution issues can solve the problem. In an interview to PTI, Goyal said the demand for power is legitimate and good quality electricity at reasonable prices should be made available to the end consumer.

“We did about 900 billion units last year and we can do at least 2 trillion units of power generation with existing assets commissioned or soon to be commissioned,” he said.

The doubling of power generation can be done without burdening the consumer with a higher electricity tariff. Goyal, who took charge of the ministries a month ago, said, “Ya, I am quite sure,” when asked whether this is possible without hiking electricity charges. Supply of coal, the fuel most used to generate electricity, needs to be rationalised by allocating it to power plants from the nearest source, he said.

For example, a power plant in Gujarat that ferries coal by rail from Chattisgarh can swap its allocation with NTPC, which depends on imported coal that is shipped through a port in Gujarat. Similarly, to solve coal quality issues facing power plants, crushing units can be set up at every mine that will ensure no boulders go to electricity stations, he said, adding that orders have been issued for installing crushers at every mine by the end of this year.

“Our focus is sorting out fuel supply issues, focusing investments in transmission and distribution, power supply to agriculture sector,” the minister said. “The bottlenecks can be clearly identified — if you ask me, the biggest one is to think a little out of the box.”

Source: The Economic Times

Piyush Goyal, the Bharatiya Janata Party’s national treasurer and a confidant of Narendra Modi, said the poll scene will alter significantly once prime ministerial candidate Narendra Modi steps up his campaign. Opinion polls only reflect the current mood, he said in an interview with Ullekh NP. Goyal, who works closely with Modi on the BJP’s economic agenda, also took on those who said that the candidate’s recent speech outlining his vision for India was old wine in a new bottle. He also said that the BJP was wholly opposed to foreign direct investment (FDI) in multi-brand retail. Edited excerpts:

Various opinion polls suggest that the BJP will emerge as the singlelargest party in the 2014 general election. However, the National Democratic Alliance (led by the BJP) will not have an absolute majority according to these polls. Are you anxious?

Not at all. These opinion polls reflect the current mood which is destined to change drastically in many states once Modi starts campaigning. He has so far done only one rally in Maharashtra. There are many states that he has’t really covered so far. His campaign, once it is completed over the next few months, will ensure that the NDA wins more than 272 seats very comfortably. Wait and watch. It could even be a landslide.

Are you taking stock of the threat from the Aam Admi Party (AAP)?
AAP is anarchic to the core and voters of this country are wise and they will reject that new party. Besides, you may have noticed that AAP is expected to eat into the Congress’s vote base, not ours.

Are you aware of the criticism that came after Modi’s speech that his vision of India is more or less old wine in a new bottle?
Modi does not believe in making promises and then failing. In Gujarat, he has succeeded in every plan without cost and time overruns. Power for all by 2012 was a promise made by the Congress and they failed. They had targets on coal production, and they failed, again. In containing inflation, they failed. They have miserably failed to meet targets in infrastructure development, from roads to building safety systems for railways. Modi, on the other hand, completely believes that all plans have to be outcome-driven. In fact, the success of the Sabarmati waterfront project is proof of his abilities in executing projects.

How well thought out were the plans he talked about at the national council meet?
Nothing was hypothetical. For each plan, he has a clear blueprint. He also has a clear funding pattern. Building mega cities – which Modiji referred to – is a project conceived when Atal Bihari Vajpayee was in power. Do’t forget that the NDA has a history of coming up with such massive projects. Our idea of SEZs, for instance, was large economic zones that were meant to become export hubs, tourist hubs, etc. What the NDA envisaged were unique identity zones, like smart cities. Those were largeformat cities where you could have a population of 1 or 2 million. We wanted them to be modern cities that would become growth engines for the Indian economy.

Remember, in the Vajpayee regime, we approved only two SEZs. Unfortunately, after 2004, everything under the UPA became an exercise in corruption. The UPA regime thought that this was a scheme (SEZ programme) to oblige friends and relatives. They approved 600-plus SEZs all over the country. They vulgarised the concept so badly that you could have a 25-acre SEZ as opposed to the large-format ones that were planned earlier. They were, by definition, special economic zones, not special economic buildings. The UPA made a joke of this plan. Under the Congress, those projects became real-estate loot.

A country that had made sovereign promises – that these SEZs will get certain tax benefits – reneged on them. So, first the UPA misused the policy, then killed it, and the whole world was laughing at India. So plans are all good and may be similar, but it is execution that counts. And Modi is committed to doing that.

How will a national gas grid proposed by Modi be of help to people in the countryside?

Gujarat has created a gas pipeline grid. Instead of troubling the people with a cap on LPG cylinders they can use, we believe every town can be connected through a gas grid. And then we will use gas cylinders in the villages at subsidised rates. Our villagers who are poor will no longer have to burn kerosene and ruin their health. So LPG factories wo’t close down, and LPG manpower wo’t go waste. Therefore, plans, for Modi, are to be implemented not slept over. 

What are the advantages of proper implementation of the price stabilisation fund announced by Modi?
See, there was an onion crisis here. It was not that our onion production had gone down. In fact, it had gone up. Yet prices shot up to Rs100. Maharashtra (which is led by Congress-NCP) was the culprit. NCP did not allow Congress to interfere in this. Now, what would a Modi government do in such a situation? He would have immediately procured onions from anywhere in the world using the price stabilisation fund. The mere announcement would have made hoarders bring out all the onions into the market.

What will the BJP’s poll manifesto say about FDI?
I cannot fully answer that question, but we are out and out against FDI in multi-brand retail which will hurt small traders. In fact, the manifesto will spell out specific plans to improve ties between the government and small businessmen, small retailers and traders to make their lives easier. Also, wherever FDI is permitted, easier clearance mechanisms will be evolved to make the bureaucratic process much less cumbersome, especially in sectors that give a boboost to Indian manufacturing.

Source: This article is sourced fro Economic Times

We need to stop talking about corruption and divisive votebank politics. We must start focusing on good governance and growth

I read the article, ‘Modi versus his party’ by Shekhar Gupta (National Interest, IE, June 15) with great interest and consider it necessary to bring out the right perspective on various issues with regard to the BJP, its relation with the RSS and Narendra Modi.

I find it amusing that it has become fashionable to talk about the BJP’s evolution and growth as an unwelcome development. The BJP, while rooted in history for its ideological inspiration, has willingly embraced contemporary ideals on economic issues. We have consistently marched forward and evolved as a modern and mature political party.

Manmohan Singh introduced economic reforms in 1991, but his actions were short-lived. Impactful reforms happened under Atal Bihari Vajpayee’s stewardship, when he smoothly navigated the rough waters of building consensus in a fractious polity. In 1998, he inherited a flailing economy with high fiscal and current account deficits, high inflation and poor investor confidence. It is his sustained policy action that corrected the situation and when he demitted office in 2004, he left behind a robust economy growing at over 8 per cent with low fiscal deficit, three years of consistent current account surplus and euphoric investor sentiment. Arvind Panagariya, professor of economics at Columbia University, described this to me as the “golden period of the Indian economy”.

The UPA thus inherited a fiscally strong economy with rapid expansion in government revenue, the fruit of which they reaped for the first few years. They indulged in massive corruption, yet got some electoral successes on the back of pernicious policies that wrecked the economy in the long run. While they offer lame excuses such as “global factors” and “coalition compulsions” for our current economic woes, it is their policy inaction and philosophy of jobless, consumption-led growth, coupled with a disconnect between the government and its extraneous masters in the National Advisory Council (NAC), which has led us to this state of despair.

Even though the NDA is not in power at the Centre, Vajpayee’s ideals of decisive leadership and good governance were imbibed by our state governments, ably led by Narendra Modi in Gujarat, Shivraj Singh Chouhan in Madhya Pradesh and Raman Singh in Chhattisgarh, to name a few. A young engineer from IIT, Manohar Parrikar in Goa, won with the wholehearted support of minorities and in a short period, has become a role model for development and honesty. Much against popular perception, Modi inherited a state that was only growing at 4 per cent (FY’96-’01) with negative growth in agriculture when he took over. Under his dynamic leadership, the BJP delivered over 10 per cent GDP growth for a decade, trumping the national average both for agriculture and manufacturing. The CAG report in March 2013 recognised Gujarat as the most improved state in reducing malnutrition by a massive 32 per cent, based on their study of the Integrated Child Development Scheme. The real story of Gujarat is best seen, heard and experienced when one visits Gujarat. While we miss the sage advice and leadership of Vajpayee due to his ill-health, we have no dearth of good leaders who model themselves after him.

It is the BJP-led NDA that brought about transformative reforms across sectors such as oil and gas, power, banking, insurance, pensions etc, and connected India through the telecom revolution and a massive infrastructure rollout programme. The BJP is now being unfairly criticised for not supporting the insurance and pensions reform bills. All parties, including the Congress, opposed the insurance FDI increase, since only Rs 5,950.30 crore has come in over 8 years, and insurance penetration has been miserable. Even if we were to support it, our concerns on fixing valuation norms as per international standards and mandating infusion of fresh capital have not been addressed. As far as the pensions bill is concerned, even the regulator has stated that increasing the FDI cap in pensions fund managers is irrelevant.