Country has constraints in availability of domestic coal, says govt

The country is facing constraints in the domestic coal availability and the rest of the dry fuel demand needs to be met with imports, according to the coal ministry.

The ministry has also emphasized that coal block holders – both captive and commercial – have a major role to play in mitigating the coal shortfall situation. Domestic coal production is about 800 million tonnes, according to the coal additional secretary, who is also the chairperson of an inter-ministerial panel on coal linkages for the power sector.

The inter-ministerial panel met recently to consider the requests for coal linkages to central / state sector power plants and to review the status of existing coal linkages.

The additional coal secretary stated that “there are constraints in domestic coal availability and the domestic coal production is roughly about 800 MT”.

“Therefore, the rest of the coal demand of the country has to be met through imports from other countries”, according to the minutes of the meeting on fuel linkages.

Coal Secretary AK Jain had earlier attributed the low coal stocks at power plants to several factors such as heightened power demand due to the boom in the economy post-COVID-19, the early arrival of summer, a rise in the price of gas and imported coal and a sharp fall in electricity generation by coastal thermal power plants.

He had added that a slew of measures is already underway to enhance the total power supply in the country.

The gas-based power generation which has fallen drastically in the country has aggravated the crisis.

Coastal thermal power plants are now generating around half of their capacity because of the sharp rise in the prices of imported coal. This has resulted in a gap between the demand and supply of electricity.

The secretary further said that states located in the South and West have been dependent on imported coal. And when domestic coal is dispatched through wagons / rakes to the domestic coal-based plants in these states to make up for the loss in imported coal generation, the turnaround time of rakes is more than 10 days, which creates rake availability issues for other plants .

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker