Targeting to double coal inventory with power plants by March: Coal secy

Days after the Union power ministry directed all power generating companies (gencos) to import coal up to 6 per cent of their requirement, the coal ministry on Thursday said the decision was just an “act of caution” and that domestic coal capacity would be ramped up. 

Coal Secretary Amrit Lal Meena said all the coal companies of national miner Coal India (CIL) had more coal than their targeted production for the upcoming summer season. 

“There is enough coal stock both with coal companies and power plants. However, power demand has grown significantly. It is a challenge; hence, the coal import decision was taken. But during the last season, CIL supplied more than their projected supply,” Meena said. 

According to the coal ministry’s projections, the inventory with companies should touch 65 million tonne (MT) by March from 34 MT currently. With the power plants, the ministry is expecting an inventory of 45 MT by March as against 30 MT currently. 

“This would be a significant jump on all counts. In December 2021, closing stock with coal companies was 33 MT. We are aiming to double this with enhanced production,” the secretary said.  

Earlier this week, the power ministry through an official directive said while domestic coal supply increased, it was not enough to meet the “unprecedented increase in demand for electricity”.

“In light of a scenario where energy demand is increasing and the increase in coal supply is not commensurate with the domestic coal requirement, there is a need to continue the use of imported coal for blending purposes. The power ministry directs all gencos to import coal for blending 6 per cent (by weight) for the remaining period of the current fiscal year and H1 of the next fiscal year (until September 2023),” the ministry stated on Monday.

Last week, the peak power demand of the country crossed the 200-Gw mark, matching the highest demand during the summer.

During the summer months last year, gencos and states claimed acute coal shortage, which led to the power ministry directing them to import coal. The directive was rolled back in three months. 

As of yet, Meena said, there was no decision to ask CIL to put any further tender for imported coal. He said there was already leftover quantity from its earlier tenders. 

The imported coal procured by CIL, at the direction of the Centre, received less than 10 per cent of the estimated demand, this paper had reported. 

To improve the logistics of coal given the congestion in the railway network, the ministry is considering the rail-sea-rail route for supply to four states — Gujarat, Rajasthan, Punjab, and Maharashtra. 

The coal ministry officials said 10 to 12 rakes per day (approximately 2 MT coal) would be transported to these states. Coal would be moved from MCL mines in Odisha to Paradip port and take the sea route to west coast, mostly to the Mundra and Kandla ports. The railways will then carry the coal to respective power plants, including that of state-owned genco NTPC.  

This mode of transport would cost lesser than that of importing coal, said Meena.