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Coal Ministry asks the Power Ministry to review the fuel import plan

29 Sep 2014 Evaluate

The precarious coal shortage situation in the country has led the Coal Ministry to ask the Power Ministry to review the fuel import plan for this fiscal as the target set is not commensurate with the plants' capacity addition envisaged for FY 2015.

The thermal power stations in the country are left with less than a week's coal stock and in order to avoid a possible coal shortage. Coal Ministry in a letter has stated that the shortfall in the import plant of CEA (Central Electricity Authority) has a bearing on the present crisis of coal stock at power stations, hence it would be desirable for MOP (Ministry of Power) to review the entire import plan of CEA to take contingency decision, if any, to avert shortfalls in coal stocks with the power plants.

The Coal Ministry had in July last year issued the Presidential Directive to CIL for signing fuel supply Agreements (FSAs) for a total capacity of 78,000 MW. The supply of domestic coal to the power projects were restricted to 65 percent, 65 percent, 67 percent and 75 percent during the remaining four years of Current Plan Period. Coal fired thermal plants account for over two-thirds of the country's power generation capacity and the shortage of coal has increased the dependence on imports.

Not only the coal shortage, the power producers are struggling with the quality of coal supplied to the power plants. Imported coal has to be mixed with domestic coal to fire the plants as the poor quality of Indian coal tends to damage the plants.

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