Gencos to face penalty for having low coal stock, says govt

Power Ministry notifies new coal stocking norms, gencos to follow month-wise threshold

Thermal power generating companies (gencos) that do not maintain adequate coal stock will face penalty, which includes reduction in fixed charge of the tariff they levy from power distribution companies (discoms).

The Union Ministry of Power notified new coal stocking norms that require gencos to maintain adequate stock of coal to avoid any crisis during lean coal supply months.

The penalty will be computed based on the shortfall — wherein the fixed charge will be reduced to the extent of shortfall in normative availability of coal.

The ministry in its notice has tabulated month-wise stock to be maintained by pithead