India plans single window system for coal projects

India is taking further steps to fast-track approvals and bureaucratic clearances for coal projects, as the country looks to attract investors to the sector and speed up government processes to bring new mines into production.

The country's coal ministry is to hire a software developer this month for the design and development of the system. It will also introduce a common application form for seeking clearances from government agencies involved in the mining approval process.

A single window system eases business by allowing firms to submit regulatory documents at a single location.

The single window system with its common approval form will cover government clearances including land acquisition and mine planning, along with details of previous leases.

The software companies that expressed interest in a bidding process to build the single window system, were informed about the scope of the project last week, which will also involve digitising the data on mines that have already been allocated.

The move is part of government efforts to reform the coal sector, with a goal of boosting domestic output and cutting imports. It is working to smooth out the processes before the launch of an auction process for commercial mining after the country opened the coal sector for 100pc foreign direct investment in September.

The coal ministry is separately working on plans to set up a dedicated unit run by external consultants to liaise with relevant government departments and officials.

Besides private-sector companies looking to enter the sector, the steps being taken may also help state-controlled producer Coal India (CIL), which meets more than 80pc of India's coal needs. CIL has lined up several expansion projects to increase its production to 1bn t/yr by 2024 from the targeted output of 660mn t for the 2019-20 fiscal year that ends on 31 March.

The target for this year is a daunting one for CIL as its output dipped by 7.8pc during April-November to 330.38mn t, hurting the power sectorthe most as more than half of India's electricity generation capacity is coal-based.

By Saurabh Chaturvedi