LM NEWS 24
LM NEWS 24

Power Ministry: States To Take Timely Action For Coal Supply

The Ministry of Power said on Saturday it has issued a circular requesting the states to take action against imported coal-based power plants if they fail to maintain adequate coal stocks.

“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. 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,” the Ministry of Power said.

“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,” it said.

The ministry said it has been monitoring coal supply situation in the country and has taken steps to ensure adequate coal supply and coal stocks based on the domestic coal received from Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and Captive coal mines.

As per decision taken in the Ministry of Power in consultation with State Gencos (power generation companies), Independent power producers (IPPs) and Central Gencos, domestic coal supply will be made proportional to the coal received from CIL/SCCL for all the Gencos and it will not be possible to give more coal other than on proportionate basis to make up any shortfall, the Ministry of Power said in a statement.

“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 said.

The ministry noted that procurers and sellers are legally bound by the PPA in force as signed by both the parties. While the procurers are bound to pay the bills timely as per PPA, the Gencos (sellers) are bound to maintain adequate fuel stocks and offer availability as per PPA.

“Not maintaining adequate fuel stocks or not giving availability on any pretext (such as high price of imported coal etc) is inexcusable. Such a conduct on the part of 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,” it said.

If any gaming is noticed on the part of seller such as not supplying electricity under PPA and selling in market should be brought to notice of the Regulatory Commission without any delay under intimation to the Ministry of Power for immediate intervention, it added. (ANI)

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