It is working on an emergency action plan that would increase production by 20%, or an additional 71 metric tonnes of coal annually, from its 16 mines, according to the Times of India. The country’s Coal Ministry has submitted a motion to the government Cabinet that could allow the plan to begin in the next financial year.

“Government is keen to promote private and foreign investments in the mining sector in a big way and it is for the business people of India and Australia to capitalise on emerging opportunities following the Government’s recent decision to allow 100% foreign direct investment (FDI) on automatic route in the mining sector,” Minister of State for Coal and Mines Dr. Dasari Narayana Rao said at an industry forum this week.

Coal production for 2006-07 is expected to be approximately 373 million tonnes, with the year’s shortfall being estimated at 55Mt, the Times of Indiareported. Power plan linkage is also being discussed; the country’s Power Ministry said it is in favour of a plan that would allow for annual negotiation of coal prices within 20-year deals with suppliers.