Coal news and updates

Coal supplies to thermal power plants are dwindling, resulting in reduced electricity generation at a large number of units. The country's largest utility National Thermal Power Corporation Limited (NTPC) has been forced to shut some of its units to cope with the situation as have some of the other power producers. The situation has been steadily deteriorating as partly reflected in data released by the Central Electricity Authority. 

 

Coal stocks in 40 plants have hit alarmingly low levels against 30 at the beginning of the month.Coal India officials admit that supplies by it have dwindled but they are putting the blame on a variety of factors including a ban by states on loading as well as local law and order problems. Overall, the company is able to supply only about 84% of the volume needed. 

 

At the worst-hit Mahanadi Coalfields in Orissa, this figure is down to about 50% with state authorities having banned coal loading onto railway rakes between 11 am and 4 pm. "The state ban on loading for five hours in a day has resulted in dwindling supplies to power plants. Plus, there is a large railway siding at which there is a ban on loading of more than two rakes a day," said a senior CIL official. 

 

According to CIL officials, the Rajmahal mine, which used to be a large supplier of coal in the east, has seen production falling because it has not been able to expand the mine area due to environmental issues. Existing coal seams that were extractable have been almost depleted. 

 

Unless the authorities allow it to expand, the volume of coal will continue to fall. Rajmahal, which used to send around 12-13 rakes a day to NTPCBSE 1.15 % plants, is down to just about six. NTPC has been forced to shut a 500 mw unit in Kahalgaon and a 210 MW unit in Farakka. 

 

Source: ET