COAL & MINES

Govt to regulate coal supply to states amid low stock in many power plants

The government has decided to take strict action of regulating coal supply from Coal India to states that do not raise captive coal production within a week or utilise their imported coal-based plants within a fortnight.

Coal supply to such states will be “suitably reduced to improve supply to other power plants having higher generation or without captive mine or imported coal power purchase agreements”, a government official said on Monday.

The measures have been decided at a meeting held by union power secretary Alok Kumar on Monday to review coal stock position at thermal power plants as a massive 109 GW thermal plants have low coal stocks.

Coal supply will be stopped to power plants that have 10 days’ coal stock but are operating at 40% capacity, an official statement said. Plants that have 18 days’ of coal stock will be facing temporary regulations, it said.

Data available with the Central Electricity Authority showed that as of Sunday thermal plants in the country have an average six days’ stock and 77 GW plants are operating with stock below four days.

Kumar also reviewed production of coal from captive coal mines held by state power generation and mining companies. The government had on August 28 directed captive coal mines to enhance production to reduce dependence on coal supply from CIL.

“Three important decisions were arrived at in the meeting taken by secretary, power,” an official statement said.

Source
ET Energy World
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