Govt Asks Power Producers To Ensure Timely Import Of Coal; Increase Production In Captive Mines

The government has asked power generation companies (gencos) to ensure timely import of coal and maximize production as it anticipates a shortfall of 24 million tonnes in the dry fuel availability during April-September 2023.
     
The share of coal-based power generation has increased in the country due to surge in demand and consumption of electricity, the ministry of power said, adding it is monitoring the availability of coal for thermal power producers (TPPs) very closely.
     
"Efforts have been made to increase coal availability from all sources. Although the supply of coal has increased in Q4 (January-March FY23), it is not adequate to meet the unprecedented increase in demand of electricity," the ministry said in a notification.
     
Directions have been given to all gencos including independent power producers (IPPs) for timely import of coal for blending purposes and maximising production in captive mines.
     
The ministry of coal has committed to supply coal to meet the revised target of 197.7 MT, subject to availability of rakes and other logistics issues.
     
"As per the past trend, the likely supply of domestic coal during H1 FY 2023-24 would be around 392 MT. Thus around 24 MT would be the anticipated shortfall during H1 FY24," it said.
     
Efforts have also been made to address the logistics issues in cooperation with the ministry of railways. The power ministry has planned to transport available coal through Rail Sea Route (RSR) mode to TPPs located in northern and western parts of the country.
     
Accordingly, directions have been issued to source 10-15 per cent of their requirement through RSR mode to states of Gujarat, Rajasthan, Maharashtra and Punjab.