Green panel nod for import of coal with higher ash content

Environment Ministry's expert panel, EAC, has suggested use of imported coal with higher ash content of up to 25 per cent, as against 12 per cent now, to help domestic thermal power plants use higher grade coal and bring down the cost of generation.
The recommendation comes against the backdrop of recent demand of the Association of Power Producers (APP) that the ministry's February 2013 order to restrain ash content in imported coal up to 12 per cent has forced power plants in the coastal region to use only Indonesian coal.
In a representation to the ministry, APP had sought review of the ash content restriction so that high grade, low moisture imported coal from Australia, South Africa and Russia can be utilised for better efficiencies, and lower the cost of generation with actual ash generation remaining the same.

"After detailed deliberations, the EAC recommended that the restriction on maximum ash content of imported coal may be increased upto 25 per cent and Environment Impact Assessment (EIA) be carried out accordingly," a senior Environment Ministry official said.
The committee observed that bulk of the imported coal having ash content lower than 12 per cent are typically of Indonesian origin having high moisture content of about 30-40 per cent, while imported coal from Australia, Russia, the USA and Columbia have ash content of about 25 per cent with moisture content up to 15 per cent.
"EAC felt that when high moisture coals are fired in boilers, a substantial amount of the heat input is used to evaporate and superheat the moisture in the fuel, thus pay a substantial price in efficiency," the official added.

The Committee further noted that lesser the ash generation, the lesser would be its environmental impact.

However, by restricting the ash content up to 12 per cent, the source of coal gets restricted to a particular origin and thus the price competitiveness may have to be compromised.
This may also be contrary to the objectives of the Competitive Bidding Guidelines and the Electricity Act, 2003, the official added.
Coal imports rose 2 per cent to 18.6 million tonnes in August from a year ago, according to SAIL-Tata Steel promoted Mjunction Services Ltd.