Coal availability for power generation to promote use of renewable energy

Ministry of Power have been monitoring the coal supply situation in the country and have been taking steps to ensure adequate coal supply and coal stocks based on the domestic coal received from Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and Captive coal mines.

As per decision taken in the Ministry of Power in consultation with State Gencos, IPPs and Central Gencos, the domestic coal supply to all Gencos will be in proportion 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.

The Ministry of Power has issued a circular directing following actions to be taken on priority in order to enhance supply of domestic coal:-

Production in captive coal mines allotted to power plants may be maximized to the limit permitted.

It has been reported that a number of power plants are taking much longer time than the prescribed norms in unloading coal from railway rakes which is affecting the turn-around time.  CEA has been asked to monitor the unloading time at power plants and it has been decided that 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 with the objective of maximizing the utilization of available railway rakes. Therefore, this aspect may be monitored at the level of State Government and unloading of coal may be ensured within the given norms.

A number of generating companies have over-dues of coal companies running in several hundred crores of rupees. Such huge overdue amounts affect the ability of coal companies to continue coal supply. Therefore, it is necessary that the bills of coal companies are paid in due time so that coal supplies to such generating companies are not affected on this account.

It has been observed that 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.

The procurers and sellers, are legally bound by the PPA in force as signed by both the parties. While the procurers are bound to pay the bills timely as per the PPA, the Gencos (sellers) are bound to maintain adequate fuel stocks and offer availability as per the PPA. Not maintaining adequate fuel stocks or not giving availability on any pretext (such as high price of imported coal etc) is inexcusable. Such a conduct on the part of seller should be immediately responded to by the procurer sternly by using all possible contractual and other available legal interventions at the level of State Government. If any gaming is noticed on the part of seller such as not supplying electricity under the PPA and selling it in the market should be brought to the notice of the Regulatory Commission without any delay under intimation to Ministry of Power for immediate intervention.

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