Power Ministry asks states to take timely action for coal supply
New Delhi, March 26: The Ministry of Power has issued a circular requesting the states to take action against imported coal-based power plants if they fail to maintain adequate coal stocks, informed the ministry on Saturday.
"It has been reported that a number of power plants are taking much longer time than the norm in unloading coal from railway rakes which is affecting the turn-around time, said the Power Ministry in its circular.
"CEA (central electricity authority) has been asked to monitor the unloading time at power plants and it has been decided that lesser number of rakes would be made available to such power plants where there is slackness in prompt unloading of coal from rakes," it added.
The Ministry further stated that "This step has been taken with the objective of maximising the utilisation of available railway rakes. Therefore, this aspect may be monitored at the level of State Government and unloading of coal may be ensured within the given norm."
According to the ministry, it has been monitoring the country's coal supply status and has taken steps to maintain adequate coal supply and stocks based on the domestic coal received from Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and Captive coal mines.
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Domestic coal supply will be proportional to the coal received from CIL/SCCL for all Gencos, according to a decision taken by the Ministry of Power in consultation with State Gencos (power generation companies), Independent Power Producers (IPPs), and Central Gencos.
The Ministry of Power said in a statement that it will not be able to provide extra coal other than on a proportionate basis to make up for any shortfall.
"It has been observed that non-operation of certain Imported Coal-Based (ICB) plants in States had put more pressure on domestic coal demand leading to low coal stocks for domestic coal-based (DCB) plants," it continued.
Procurers and sellers, according to the government, are legally bound by the current PPA, which was signed by both parties. While procurers are required to pay bills on time in accordance with the PPA, Gencos (sellers) are required to keep enough fuel stocks and provide availability in accordance with the PPA.
"Not maintaining adequate fuel stocks or not giving availability on any pretext (such as high price of imported coal etc) is inexcusable. Such conduct on the part of the seller should be immediately responded to by the procurer sternly by using all possible contractual and other available legal interventions at the level of State Government," the circular added.
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-PTC News
