Industry body CII today suggested diversion of coal from e–auctions to power plants as a short-term measure to avoid crisis arising out of shortage of fossil fuel.
"As a short–term solution, CII recommends diverting coal from the e–auction process to the power plants that are almost on the verge of stranded capacity," the industry chamber said.
In a statement, CII said 32 power stations had coal stock to last for less than seven days, while 18 had stocks enough for less than four days, against a normal stockpile for about 21 days by the end of February.
"Unless coal supply issues are urgently addressed, this could impact the power supply situation in the country during peak summer months. We request the government to address this issue on priority" CII National Committee Chairman on Power and Tata Power's Managing Director Anil Sardana said.
The industry chamber has also called for taking immediate steps for release of coal, that are lying at the pit-heads for want of rail rakes, to the power plants.
"Both these actions in tandem can free–up approx 80–100 million tonnes of coal for immediate use," the industry body said.
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Pitching for a market based price of coal, CII said this could help in reflecting true economic cost of power and identifying the subsidy gap, while ensuring that actual cost of coal is factored into electricity tariff setting.
"It is also necessary to open–up new coal–bearing areas by stepping–up exploration activity and discovery rate for proven coal reserves for exploitation by both CIL and private developers via a competitive bidding process," it added.