(ET)
Thermal power plants have started delaying coal unloading as their fuel stocks have risen, industry executives said. Coal India executives say a few plants are trying to cut supplies without formally asking for a cut, so that they would not have a problem when they need more fuel to meet higher summer demand. Power sector executives, however, say unloading takes longer than normal when coal is already heaped in the storage space.
Industry executives said this is happening in Punjab, Haryana, Uttar Pradesh, Gujarat and Maharashtra. Some plants are running out of storage space while others are financially stressed and are not in a position to stock the coal. A power sector official said delay in releasing rakes attracts demurrage charges, payment of which requires approval from the management. Power plants try and balance demurrage charges with increased cost of maintaining inventory by reducing their stocks.
