Coal shortage for thermal plants may continue

27 April, 2012

Coal shortage for power sector may continue as increased supply of more than 12 % may not be feasible without the active support of Railways & Coal India Ltd.

THE COAL shortage at a number of thermal plants in the country is likely to continue as Coal India Ltd. (CIL) envisaged growth is linked to increased availability of railway wagons. The average growth in coal movement through rail has been only around 3% during the last 3 years whereas CIL has envisaged a growth of around 12.6% through rail to meet the target in current financial year. The daily rake requirement to meet the target will be 193 rakes against last year’s supply of 168 rakes.

As per Central Electricity Authority report the generation loss reported so far due to coal supply shortages during April’11-March’12 has also increased to 8.82 billion units from 7.0 billion units in the corresponding period last year. During the financial year 2011-12, capacity addition of 20501 MW was achieved out of which 19079 MW capacity addition was by Coal/Lignite based plants. Many of the newly commissioned units although were able to generate more could not do so on account of various problems which include Coal shortages.

The signing of coal supply agreements with various power producers whose units have been commissioned may not yield desired results. Even CIL has reportedly refused to supply power plants commissioned since December 2011. This includes a 300-MW unit of Reliance Power’s Rosa power plant in UP and a 660-MW plant of China Light & Power (CLP) at Jhajjar, Haryana.

CIL has already signed at least 10 of the 50-odd FSAs envisaged with power companies for plants commissioned between March 2009 and December 2011. Further the coal production increase has to match with the capacity addition. The import of coal with higher gross calorific value can be blended up with Indian coal to 15 % only. The increased coal racks movement in the country is very vital for proper coal stocks at thermal plants.

Even today there are 18 thermal plants in the country where coal stock would last less than 4 days and comes under super critical category. There are at least two thermal plants namely Koderama and Durgapur steel to which coal is yet to be started.

Anapara C, Chhabra and Bokaro thermal plants have nil coal stock due to inadequate coal allocation. Jhajjar thermal plant has two days coal stock because of inadequate coal allocation. CIL’s targets have been fixed at 468.74 Million Tons (MT) and 474.70 MT respectively for production and coal off-take.