Uday scheme to reboot coal demand in six months: Coal Secretary
25 Feb 2016
The demand for coal in the power sector, which has been stagnated lately, is likely to recover and go up in the next six months as states are rapidly joining the Uday schemewhich is intended to de-stress the financially ailing power distribution companies.
The reason, according to union coal secretary Anil Swarup, is the scheme is lessening the debt burden on the power distribution sector resulting in increased competency. With the burden getting waived off, the demand for power will pick up resulting in the thermal power producers demanding coal.
"The demand should pick up and increase in the coming six months", he said on the sidelines of the 6th Asian Mining Congress organised by the Mining, Geological and Metallurgical Institute of India here.
As on February 22, all thermal power plants pan-India had an average coal stock of 36.04 million tonne (mt) which can generate power for 24 days without any need for replenishing the same. On the same day last year, the coal stock stood at 19.49 mt amounting to 12 days of production capacity.
From April-December last year, across India, 710,394.46 Mw of power was generated from coal while it stood at 667,189.51 Mw during April-December 2014.
Nevertheless, subdued power demand has resulted in the energy sector facing a critical moment besides coal stocks piling up in their warehouses.
The senior official, however, ruled out the possibility of the Maharatna behemoth Coal India slowing down its production in response to muted demand from power sector.
"Fifteen months back, we had a scenario where there was an acute shortage of coal, but now, it is abundant. I will be happy with a scenario where we can have abundant coal rather than a shortage", Swarup said.
He said despite use of solar energy picking up fast, India's dependency on thermal power will continue and hence the demand for coal will remain strong.
"Solar energy will not be able to entirely fulfill the country's demand for power", he said.
The government is also coming up with a policy in a month's time for those power companies who presently don't have existing coal linkages so that the fuel supply can be ensured.
Source: Business Standerd