Stagnant coal production hits power generation
Vinod Kumar Gupta
Monday, 05 December 2011
CHANDIGARH:Coal shortage in the power sector will continue to hit generation due to stagnant coal production in country.The coal stocks at thermal plants have not improved after rains and workers strike in August and September.

Now at the beginning of December, 31 thermal plants in the country have coal stock of less than 4 days and comes under super critical category.52 of 89 thermal plants being monitored by Central Electricity Authority have less than a week coal stock.

The demand for coal is rising by about 8.0 per cent per annum but coal output which was expanding at about 7.0 per cent has now become stagnant. Domestic coal production was originally targeted to reach 680 million tons (MT) in the Eleventh Plan is now expected to be only 554 MT.

Coal Minister Jaiswal said last week that Coal India Limited (CIL) could not meet the requirements of the power companies. A large number of power plants are coming in the country. We cannot meet the increased coal demand of the power companies.

The minister admitted that some of the power stations do not have adequate stocks of coal. He advised the power companies to import coal considering their rising demand.

As per approach paper to 12th. Five year plan, given the strong growth in thermal generation projected in the twelfth plan, the aggregate demand for coal at the end of the twelfth plan is likely to be between 900 and 1,000 MT. The domestic output is unlikely to exceed 750 MT leaving more than 200 MT shortfalls to be met from imports. Even this assumes that domestic output will be able to increase by over 200 MT from current expected level of 554MT. Even with the best effort at increasing domestic production it will not be possible to meet the increased demand for coal from domestic production.

Coal imports are expected to rise from about 90 million tons at present to over 200 million tons from 2016-17. The cost of imported coal is the major hurdle and generating companies are not too willing to import coal.Power utilities are unwilling to buy expensive power generated after blending of imported coal with domestic coal. Even NTPC has had to back thermal generation at several thermal stations due to cost factor, thus adding to the ongoing power crisis in the country.