Coal news and updates

Indian power plants’ average PLF declines in 2015-16 (correction of April 27 story)

The average plant load factor (PLF) of India’s coal and lignite-fired power plants fell to 62.19% in 2015-16 from 64.26% in 2014-15, data published by the Central Electricity Authority (CEA) revealed.

The data revealed that the average PLF during the month of August 2015, at 57.6%, was the lowest during the entire 2015-16.

Industry sources said, the decline in the average PLF was largely on account of low demand for electricity by distribution companies (discoms) as they were unable to buy power from generation companies due to their poor financial position.

However, with as many as 10 states having signed memoranda of understanding with the Government of India under the UDAY scheme for restructuring of their discoms between January and March, 2016, the situation is likely to improve in the coming months, ICMW understands.

As part of the restructuring of discoms under UDAY, 50% of total debts would be taken over by respective state governments in 2015-16 and another 25% of the debts would be taken over by June 2016 (Q1 of 2016-17) and this is likely to improve the cash flows of discoms, which will, in turn, enable them to procure more power from generation companies.

Following table provide details of month-wise all-India PLF for 2015-16 and 2014-15:

Source: CEA Data