Coal news and updates

‘Discom demand to rise soon and end surplus scenario’

The current surplus scenario in domestic coal availability may not last for long as the demand for power from distribution companies (discoms) will start rising within the next six months following fast implementation of UDAY and that will lead to increase in coal demand, Secretary (Coal) Anil Swarup feels.

Talking to reporters after inaugurating the 6^th edition of the Asian Mining Congress in Kolkata on February 24, Swarup said he is quite sure that six months down the line there will be huge demand for coal as the discoms, which were unable to purchase power from generation companies due to their financial problems, will start buying more power by then.

Asked if the current high pithead stock of coal in the country is a cause of concern, the Secretary (Coal) said, “Because of the problems that discoms were facing, we were unable to dispatch as much coal as we wanted to (and so the pithead stocks rose) though there is incipient demand for power. It is not that there is no demand for power.”

UDAY will improve the financial position of discoms and once that improves they will draw more power and when they draw more power, there will be more demand for coal, he said.

He pointed out that the current plant load factor (PLF) of power plants in the country is around 60-61% despite power generation capacities going up. “The PLF stands at 60-61% not because they cannot provide power but because the demand for power has dome down and demand for power has come down because the discoms are not in a position to buy power.”

“It (demand for power from discoms) should start happening in six months’ time,” Swarup stressed.

“Till one year back, no one would believe (when I said) that there would be coal in India, but that has happened. And now, I keep saying that there would be demand for power and it too will happen within a year’s time,” he said.

According to him, UDAY is a very well thought out programme. It is unlike the previous programmes for distribution companies in which merely restructuring of financials were undertaken.