As power plants turn super critical, Centre asks Coal India to ramp up supply by 25%

The government has asked Coal India Ltd (CIL) to increase coal production and supply to thermal power plants which saw acute coal shortage just before Diwali.

The government has asked CIL to ramp up coal production and dispatch from 1.6 million tonne (mt) daily to 2 mt.

The coal offtake has already increased over 8% this fiscal.

DNA Money had reported that just before Diwali as many as 27 thermal power plants across the country were in super critical and critical situation due to coal shortage. A power plant is classified as super critical if coal stock is less than four days, likewise, those having coal stock of below seven and over four days are termed as ‘critical’.

“Coal demand is robust…I have asked CIL to start dispatching and producing 2 mt per day. Currently, they are doing about 1.6 mt of dispatch. So, the goal for CIL is to produce 2 mt per day, dispatch 2 mt per day against the current 1.6 mt,” coal secretary Susheel Kumar said.

With monsoon over, there is a possibility of CIL being able to meet the increased target.

CIL officials claim that the sole reason for increased demand for domestic coal is fall in hydro and nuclear power generation.

“In spite of supplying adequate coal during August-October 2017, coal stocks at power plants further depleted to 7 mt due to higher coal-based power generation because of less generation by hydro, nuclear, wind, etc,” said a CIL official.

In August and September, there was a reduction in power generation from nuclear, wind and hydro by 2,000 mw, 1,000 mw and 1,000 mw, respectively.

Nuclear generation was lower by 35% in August 2017 over August 2016, and 14% in September 2017 as compared to September 2016, and hydro generation was 12% less in August 2017 vis-à-vis August 2016, 0.1% in September 2017 over September 2016.

Elaborating the reasons behind power crisis in the states of Rajasthan and Maharashtra, CIL official told DNA Money that in FY2016-17 coal stock at thermal power plants started increasing and plants regulated coal intake in 2016-17 which continued till June-July during the current year.

As a result of regulated coal intake, in April fuel stock at power plants was 28 mt whereas the CIL pitheads stock increased to 68 mt this year, a record high. Now, CIL has been asked to liquidate its stock at pitheads to zero by March 31, 2018, from the present 30 mt.

“Coal production at many of the CIL locations was required to be regulated to avoid spontaneous combustion of coal stored in open, hot, summer condition. During the rainy season, the coal production of coal companies is impacted.

This coincided with a sudden spike in coal requirement for power generation during the second quarter due to the reduction in nuclear, wind and hydro generation,” said the CIL official.

POWER PLAY

• In August and September, there was a 4,000 mw reduction in power generation from nuclear, wind, hydro
   
• Nuclear generation was lower by 35% in August 2017 over August 2016, and 14% in September 2017