The Tula Economic Council and the Problem of Developing Coal Production in the Moscow Basin

Abstract

Lately some economists expressed opinions about the inadvisability of developing the Moscow coal basin and suggested using coal brought from afar for local consumption. For example, Z. Chukhanov and L. Khitrov wrote that "Now it is impossible to find even one convincing argument for developing production of Moscow coal." (See their work "Technological Use of Fuel for Production of Power," 1956, p. 30.) This point of view is shared by M. Shchedrin ("Planned Economy,"No. 2, 1957, p. 5). These authorities use only one criterion for the advisability of coal production in the Moscow basin, namely, the cost of production per ton of coal at the mines. At the same time they consider that the cost of Moscow coal at its place of consumption, in the Central industrial region, in terms of theoretical fuel, is considerably higher than of coal brought from afar. It is not an accident that in the Moscow coal basin in 1956 the construction of twelve mines was put in abeyance and the start of construction of a large Begichev coal pit with productive capacity of several million tons was delayed. In the last two years construction of only two new pits was started. The investment plan for 1957 was cut almost by 130 million rubles; the planning organs did not foresee the opening of new pits during 1958-1960.