core sector communique

Coal Minister Addresses Foreign Investors meet at Singapore

A delegation to Singapore led by Coal Minister of India, ShriSriprakashJaiswal along with senior official of his Ministry and Chairman of the largest coal producing company - CIL, witnessed the road-shows and participated in the foreign investors meetsorganised by Infrastructure Development Financial Corporation Ltd. on Augusr2,2012 atSingaporeto attract foreign investors in infrastructure development in India. Investors meet was held in Hotel Ritz Carlton in Singapore on 2nd Aug. 2012. The whole Indian Delegation led by the Coal Minister, ShriJaiswal along with ShriAlokPerti, Advisor, Ministry of Coal, ShriPradip Singh, MD, IDFC, Shri S. NarsingRao, Chairman, Coal India Ltd., Indian High Commissioner in Singapore, Shri TCA Raghavan along with other senior officials attended the meeting. ShriJaiswal, while addressing to the investors meet in Singapore, briefed about the efforts being made by the Government of India to accelerate its economy by pushing the growth rate to over 8%, which remained on track not with standing the adverse financial crisis worldwide particularly in European countries. ShriJaiswalemphasised the targets of Indian Government particularly on core infrastructure sectors like Power, Railways, Roads, Shipping, Civil Aviation and Coal. He further elaborated that in order to achieve the set targets of additional 18,000 megawatt capacity of power generation in 2012-13; coal supply of 470 million tonnes by Coal India Ltd. (CIL) alone besides another Government Company Sigreni Collieries Co. Ltd. (SCCL) and production from coal blocks allotted to end-use public and private sector companies, totaling to about 580 million tonnes during the current financial year itself; port cargo handling capacity of 244 million tonnes per annum besides works for construction of two new major ports to be awarded this year; work award for construction of additional 9,500 km road and maintenance of 4,360 km road; work award for construction a number of new domestic airports and up-gradation of 3 more airports to service international flights as well as formulation of an Airport Hub Policy and starting operation of hubs in Delhi and Chennai in 2013. Indian Railways have many new projects including Dedicated Freight Corridors in Son Nagar - Dankuni Sector, Elevated Rail Corridor in Mumbai and also a High Speed Corridor between Mumbai and Ahmadabad. ShriJaiswal apprised the investors about the seriousness of the Government of India and that the Hon`ble Prime Minister of India himself has been reviewing the status of progress of the set targets. He communicated the wish of the Government of India and efforts in the direction to create congenial environment for investors enabling achievements of the cumulative targets in developing the infrastructures in the shape of `Public-Private Participation`. India needs about 1 trillion US $ over the next five years for developing infrastructures and the Government is well aware such a huge investment is possible only when sentiments of the investors are taken care of. ShriJaiswal briefed the investors about the ambitious plan `Economic Reform Programme` undertaken by Government of India in the early 90s under which foreign investment policy was liberalised, as a result of which India entered into several Bilateral Investment Promotion and Protocol Agreements (BIPAs) in order to promote and protect on reciprocal basis investment of the investors. Such agreements contain commitment to encourage and create favourable condition for investors and accord fair and equitable treatment to the investors. According the Government has framed policies and laws to take care of the investors and progress of the nation. While briefing about the public and private participation in coal sector in India, ShriJaiswal apprised the investors about availability of huge coal reserves in India, which continues to be the main source for increasing need for power generation. He mentioned that since 1993, the Government of India allowed coal mining for end-use by public and private sector players, particularly for power generation and for consumption at iron, steel, cement plants etc. This has resulted in huge expectations of addition of power generation and iron & steel production capacity. The Government also allocated coal blocks for Coal Gasification and Coal to Liquid. Today large numbers of coal blocks are being developed for production by such players. Coal India Ltd., who are the largest coal producing Government Company in India has also gone in the share market by disinvesting its 10% of the shares in 2010. CIL continues to do well with its rising turn-over and profit margins year after year.The current level of coal production of 580 million tonnes expected during the current year is likely to shot up to 780 million tonnes by 2016-17. Still efforts are needed to have huge investments that would yield results and benefits to the nation and the investors as well. ShriJaiswal convinced the foreign investors that besides other infrastructure development sectors, coal sector in India holds tremendous promising avenues for the investors in safe environment.