Coal news and updates

Six Mahagenco units are under various stages of construction but the biggest problem facing them is coal linkage. Mahagenco and Gujarat State Electricity Corporation Ltd (GSECL) had been allocated two captive blocks in Odisha in 2006. Even after passage of eight years, production has not started in Machchhakatta and Mahanadi blocks.

 

Two 500 MW units of Chandrapur, three 660 MW units of Koradi and one 250 MW unit of Parli are supposed to get coal from the two blocks apart from some units in Gujarat. The state government has applied to coal ministry for tapering (temporary) linkage for these until production starts in Odisha. However, so far only the Parli unit has got the linkage.

 

There is little chance of other units getting tapering linkages because of shortage of coal in country. Coal India Ltd (CIL) and ministry of coal have told power companies to import coal as they would be unable to supply the full quantity required. Chief minister Prithviraj Chavan was aware of this situation and had requested Jyotiraditya Scindia, the power minister in UPA government, to arrange for coal for these units. However, Scindia was unable to fulfill the demand.

 

A WCL official said India had huge coal reserves but production had not begun in new mines because of problems in land acquisition and environmental clearance. "The coal allocation scam also complicated things. The de-allocated blocks will be auctioned and the allottees will start the process of mining afresh," he said.

 

"There is very little chance that coal companies can give tapering linkage to 3,000 MW capacity. Even now they are unable to supply the contracted quantity to Mahagenco and other power companies," he said.

 

Recently, ministry of coal had rejected power ministry's request to provide fuel to new plants of private companies having total installed capacity of about 10,000 MW. Last year, Centre had decided that CIL's first priority should be the units for which fuel supply agreement (FSAs) had been signed.

 

The official further said that the intensity of crisis could be gauged from the fact that of the 100 major power plants in the country, over 40 had coal stock of less than seven days. Among these 25 had less than four days' stock. "When a plant has less than four days' stock, it is called supercritical. Under such circumstances generation has to be reduced so that the plant does not run out of coal. Ideally a plant should have over 14 days' stock," he explained.

 

Of the Mahagenco's seven coal fired units two ? Khaparkheda and Parli ? only have one day's stock. Bhusawal has five days' stock. NTPC's Mauda plant and Adani's Tiroda plant too have just one day's stock.

 

Source: ToI