Coal news and updates

PLF of thermal plants lowest since ’94-95: APP DG

India Coal Market Watch

December 23: The plant load factor (PLF) of thermal power plants in the country has been steadily decreasing and is currently at the lowest level since 1994-95, Ashok Khurana, Director General (DG) of the Association of Power Producers (APP), told ICMW.

“This indicates that the improved coal supply scenario has not been able to translate into improved power generation,” he said.

This is due to a couple of reasons – absence of long-term power purchase agreements (a key condition for accessing coal), reluctance of the Ministry of Coal to allow linkage coal usage for medium and short term power supplies and inability of distribution utilities to buy power because of their financial health, he added.

Khurana, however, lauded the government’s effort to augment domestic supply of coal for the power sector.

“A significant positive in the past and this year has been a notable improvement on the coal supply side due to the active engagement of the government,” he observed.