Power Plants Told To Import 10% Of Their Coal Demand For Next Year

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(T.E.T)

The government has asked power plants to import coal in preparation for the summer and rainy seasons, Union power secretary Alok Kumar said. In an exclusive interview with Sarita C Singh, he said that though the share of coal-based generation will come down, it will still be substantial in the near future. Edited excerpts:

India is committed to energy transition, but with energy security. India has made a path for a greater share of electricity generation from renewables and non-fossil (fuels). If we are talking of 50% of the installed capacity of electricity from non-fossil by 2030, it means the share of coal as a percentage will come down in this decade. But, because our energy needs are growing, in absolute numbers the electricity generated from various sources will be there to meet the demand. Coal generation in a year.

Coal stocks norms have been revised and stocking limits have been laid out for various months. We are continuously monitoring and the coal ministry has assured us that by the end of March, stocks at power plants will be 47 million tonnes from the present 23 mt. Recently, a review was done on production by CIL mines and captive mines. Just to have a proper cushion, the power ministry has advised NTPC and DVC to arrange coal imports of 10% of their demand for blending, so that there is sufficient stock in case there is a disruption in coal supply. For IPPs and state gencos also we have advised coal imports of 4% of need for blending purposes.

If need be, depending on imported coal prices. When imported coal prices go higher, the imported coal-based plants are not dispatched because their cost goes up and there is more pressure on domestic coal. If domestic coal production does not increase, import of coal is not ruled out for blending and if it is good for maintaining sufficient stocks. This is a contingency plan – a better option than facing supply disruptions.

 

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