Making it clear that coal would be the mainstay in the energy mix, the Commission pointed out that India’s coal requirement will have to expand from around 420 million tonnes in 2003-04 to 2-3 billion tonnes annually based on domestic availability of coal. “It is suggested that 20 per cent of the coal production may be sold through e-auction. Remaining coal should be under long term fuel supply and transport agreements,” it suggested.

State-run steel giant Coal India Lmited (CIL) achieved a production level of 379.49 million tonnes in 2007-08, which is 5.1 per cent higher over the previous year. The 11th Plan projections for the coal sector has placed onerous responsibility on CIL. The PSU is expected to produce 520.5 million tonnes in the terminal year of Plan period (2011-12) up from a level of 360.9 million tonnes achieved in 2006-07, coal ministry sources said.