Coal India for better fuel usage

Power generating companies and stations were responsible for coal shortage at power plants, according to Coal India Ltd (CIL).

Coal buyers like National Thermal Power Corporation (NTPC) had alleged in the recent past that the contingency plan for supply of coal prepared by the Cabinet Secretary was not fully followed because some power houses refused to take coal from alternative sources.

To combat this, CIL has prepared a strategy advising power houses like NTPC. The strategy recommended advanced planned production by CIL, but simultaneously urged speedier commissioning of Pakri Barwadi block coal extraction process being done by NTPC. It suggested that power majors should import coal under a planned time schedule.

CIL's strategy urged the need for reduction of T&D losses. "In view of overall shortage of coal in the economy, the power sector has to optimise consumption of coal by reducing T&D losses from around 33 per cent", it said.

In 2004-05 accounting period, 393.07 billion units were generated by power sector but 128 billion units lost in the T&D system. "This loss in terms of coal quantity is almost 100 million tonnes," said CIL.

The coal major also suggested that unloading infrastructure at the plants need to be improved to reduce turnaround time of railway wagons.

Plants requiring such improvement were at Suratgargh, Wanakbori, Sabarmati, Khaperkheda, Koradi Panipat DPL, Kolaghat, Bakreswar, and Meijhia.

"Power houses and state electricity boards need not control inventory, as this leads to depletion of coal stocks, as has been seen at Suratgargh, Dadri, and Kota," CIL said.

Coal India is also of the view that payment of coal sales dues be made regular since chronic defaults by power utilities led to regulation of supplies to defaulting power houses.

"So far, 143 blocks have been identified for allocation. Out of these, 86 are allotted and decided for allocation. Coal production has started from eight such blocks contributing 9.20 mt in 2004-05 and production is expected to reach 12.50 mt in 2005-06," Coal India said.

NTPC said on its part that while coal supply was an issue, it generated 35431 million units (MUs) in the first quarter of 2005-06 against 33124 MUs generated in the previous corresponding period, thus registering an increase of 6.96 per cent. Further, the PLF for coal-based NTPC stations for the quarter ended June 30, 2005 improved to 87.31 from 87.13 during the same period in the previous fiscal.