Domestic coal supply to be made proportional: Power Ministry

The Power Ministry has issued a circular directing
certain actions to be taken on priority to
enhance the supply of domestic coal.

NEW DELHI: The Power Ministry on Saturday said it will not be possible to supply coal other than on proportionate basis to make up any shortfall.

The Ministry of Power in a statement said it is monitoring the coal supply situation in the country and has taken steps to ensure adequate coal supply and coal stocks based on the domestic coal received from Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) and captive coal mines.

 

As per the decision taken in the ministry in consultation with state gencos, IPPs (independent power producers) and central gencos, domestic coal supply will be made proportional to the coal received from CIL/SCCL for all the gencos and it will not be possible to give more coal other than on proportionate basis to make up any shortfall, it added.

 

It has issued a circular directing certain actions to be taken on priority to enhance the supply of domestic coal.

 

Firstly, production in captive coal mines allotted to power plants may be maximised to the limit permitted by the ministry.

 

Secondly, it has been decided that a lesser number of rakes would be made available to such power plants where there is slackness in prompt unloading of coal from rakes.

 

This step has been taken to maximise the utilisation of available railway rakes. Therefore, this aspect may be monitored at the state government level and unloading of coal may be ensured within the given norm.

 

It has been reported that several power plants are taking much longer time than the norm in unloading coal from railway rakes, which is affecting the turn-around time, the statement said.

 

The central electricity authority (CEA) has been asked to monitor the unloading time at power plants.

 

Thirdly, many generating companies have overdue (for coal companies) running in several hundred crores of rupees. Such a huge overdue amount affects the ability of coal companies to continue the supply.

 

Therefore, the bills of coal companies must be paid in due time so that coal supplies to such generating companies is not affected on this account.

 

It has also been observed that the non-operation of certain imported coal-based (ICB) plants in states had put more pressure on domestic coal demand, leading to low coal stocks for domestic coal-based (DCB) plants.