Considering the fact that coal will be required to meet 85% of 76,000 megawatts additional capacity for power generation targeted in the next five years, the coal ministry has proposed setting up a sovereign wealth fund to buy coal assets abroad, reports said.
The announcement was made by Coal Minister Sriprakash Jaiswal.
The mineral is responsible for over half of the country’s power generation and demand is only set to rise further. However, domestic supply has trailed the target due to regulatory hurdles. Moreover, poor infrastructure has made the transport of imported coal hassling.
The Coal Minister also said that the Cabinet is likely to consider a bill to create a coal regulator next week.