The Prime Minister, Dr. Manmohan Singh, today reviewed the situation regarding demand-supply gap in respect of coal and issues concerning mining sector. The one-hour long review meeting was attended by the Minister of State for Coal & Mines, Dr. Dasari Narayana Rao; senior officials of PMO; Secretary (Coal), Shri P.C. Parekh, Secretary (Mines), Shri C.D. Arha and senior officials of the Ministry of Coal & Mines.

Dr. Manmohan Singh directed the officials of the Ministry to expedite clearance of coal mine projects slated for X and XI Five Year Plans to bridge the widening gap between demand and supply of coal. He also asked to identify new projects to increase coal production. The Prime Minister observed that there was a considerable scope to increase productivity in public sector coal companies besides maximizing utilization of machinery. Dr. Manmohan Singh underlined the need for innovative methods of self-employment, early implementation of coal projects, and resolving of relief and rehabilitation issues without adverse impact on the land losers. He asked the Department of Coal to come with a suitable proposal for allocation of shares to the workers in place of the present Voluntary Retirement Scheme.

Prime Minister was apprised that coal sector has registered a growth of 5.6 per cent during 2003-04 but the demand-supply gap in respect of coal was likely to be 55 million tons in 2006-07.

Sharing the concern of the Department of Mines about the inordinate delay in clearing mining proposals, the Prime Minister directed the Department to move a proposal for a single window clearance mechanism. He reiterated the need to maximize investment, growth and development of mining sector. Dr. Manmohan Singh desired NALCO to make energetic efforts to commission the expansion project so as to fully reap the advantages of current price trends. He also desired early revision of royalty on non-coal major minerals to augment revenue generation of the States. Expressing concern over the delay in finalisation of terminal benefits for 3100 employees of Bharat Gold Mines Ltd., which has since been closed, the Prime Minister directed necessary action to be taken in pursuance of the judgement of the Karnataka High Court.

Emphasising the importance of Geological Survey of India, the Prime Minister desired the GSI to be equipped with frontier technologies to meet the challenges of exploration activities. GSI has proposed upgradation of its marine and air-borne survey wings through purchase of new ocean-going vessels, aircraft and helicopter.