Monday, November 28, 2011

The Coal Despatches by Coal India Limited (CIL) to the Power Utilities

During the last three years, the coal despatches by Coal India Limited (CIL) to the Power Utilities were 102%, 96% and 91% of targets fixed for 2008-09, 2009-10 & 2010-11 respectively. Despatches during 2009-10 and 2010-11 were less than the target, mainly due to frequent law and order problems particularly in Jharkhand and Odisha affecting coal despatches in Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL) & Mahanadi Coalfields Limited (MCL) and constraints of wagon availability in comparison to indents in certain coal fields. This was informed by Shri Pratik Prakashbapu Patil , Minister of state in the Ministry of Coal while replying a written question in Rajya sabha today.

He minister said that during 2011-12, upto October,2011, coal dispatch from CIL coal companies to the power utilities was 91% of the pro-rata target, committed under the Fuel Supply Agreement / Memorandum of Understanding. Coal dispatches to power stations went down during the second quarter of this year mainly due to heavy rains in the coalfields during August/September, severely affecting transportation and wagon loading.

Despatch was also hampered due to unloading constraints of a few power stations and stoppage of lifting through private washeries by MAHAGENCO power stations.

As per the assessment made by the Central Electricity Authority (CEA), the coal requirement for the power plants designed on indigenous coal has been estimated at 457 Million Tonnes during 2011-12. Against this requirement, the coal availability from the indigenous sources has been estimated at 405 Million Tonnes and the balance has to be met through imports by power utilities. Ministry of Power has fixed import target of 35 Million Tonnes, which is considered equivalent to about 52 Million Tonnes of indigenous coal due to higher calorific value of imported coal, for import by the power utilities during 2011-12. The power utilities require “F” grade non-coking coal which needs to be imported by them, but the value of coal to be imported by the power utilities cannot be estimated at this stage.

Issues relating to delay in land acquisition, obtaining statutory clearances relating to environment / forest, Rehabilitation and Resettlement issues etc have resulted in reduced coal production targets by CIL. While finalizing the 11th Plan document, it was estimated that the coal production target for CIL, by the end of terminal year of 11th Plan ( 2011-12) would be 520 Million Tonnes, but it had to be revised downwards to 447 Million Tonnes due to the above mentioned reasons. The reduced availability of coal from CIL sources is affecting all consumers, including the power utilities.

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