Coal India Ltd. plans to work in two Mozambique blocks; India’s Minister of state for energy criticizes the railway ministry for announcing hike in freight by 4%
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    • The Coal India Ltd has planned to start exploration in two coal blocks in Mozambique next fiscal from where it expects to begin production from 2014-15.Coal India had won a global bid and acquired prospecting licenses for the two blocks in Mozambique in September 2009. The two coal blocks, spread over 200 sq km, have reserves of around a billion tonnes according to initial estimates. “We plan to commence exploration next fiscal, which would be on for about three years. After that we plan to start production from these blocks,” Mr Partha Bhattacharyya, Chairman, Coal India stated.1

    India’s Minister of state for energy Saurabh Patel has criticised the railway ministry for announcing hike in freight by 4% from December 27. He said that the increase in freight will directly impact the power sector in Gujarat and will put an extra burden on electricity consumers. Patel stated that the consumers of all categories will be affected as the fuel surcharge will see an increase with the increased cost of power production. He added that the decision of increasing rail freight will adversely impact the economy of the state as it depends largely on coal-based power production.2

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