On Saturday, the power ministry stated it would be impossible to deliver coal other than proportionately to make up any shortfall.
In a statement, the Ministry of Power said it is monitoring the country’s coal supply situation and has taken steps to maintain enough coal supply and coal stocks using domestic coal from Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL), and captive coal mines.
Domestic coal supply will be proportional to the coal received from CIL/SCCL for all gencos, according to a decision taken by the ministry in consultation with state gencos, IPPs (independent power producers), and central gencos. It will not be possible to give more coal other than on a proportionate basis to make up any shortfall, it added.
The power ministry has issued circular
It has issued a circular mandating specific procedures to be implemented as soon as possible in order to increase domestic coal supply. To begin with, production at captive coal mines allotted to power plants may be maximized up to the ministry’s maximum. Second, it has been determined to make a smaller number of rakes available to power plants that have a problem unloading coal from rakes in a timely manner.
This measure was made in order to make the most of the available railway rakes. As a result, this component may be monitored at the state level, and coal offloading can be ensured within the established guidelines. According to the statement, some power facilities are taking significantly longer than usual to remove coal from railway rakes, which is hurting turnaround time.
The central electricity authority (CEA) has been tasked with keeping track of power plant unloading times. Third, power generation businesses are behind on payments (for coal companies) in the hundreds of crores of rupees. Coal businesses’ capacity to continue supplying coal is harmed by such a large overdue amount. As a result, coal company bills must be paid on time to ensure that coal supply to such generating firms is not disrupted.
The non-operation of certain imported coal-based (ICB) plants in states has also been noticed, putting further pressure on domestic coal demand and resulting in low coal supplies for domestic coal-based (DCB) plants.
The PPA (power purchase agreement) signed by both sides binds the procurer and the sellers legally. While procurers are required to pay bills on time, gencos (sellers) are required to keep enough fuel stockpiles and provide availability in accordance with the PPA. It is unforgivable, according to the government, to fail to maintain adequate fuel supplies or to provide availability under any pretext (such as the high price of imported coal). Such behavior on the part of a seller should be met with sternness by the procurer, who should use all contractual and other available legal interventions at the state level, according to the statement.
If any gaming is detected on the part of the seller, such as not supplying electricity under the PPA and selling on the market, the Regulatory Commission should be notified immediately and the Ministry of Power should intervene, according to the ministry.
According to the statement, certain imported coal-based power plants are experiencing PPA challenges as a result of changes in Indonesian regulations and a rise in worldwide coal costs. These difficulties must also be resolved through reciprocal agreements in a fair and transparent manner, according to the report.
As a result, states may ensure PPA implementation with ICB plants through contractual interventions, or in exceptional circumstances, use statutory provisions of the Electricity Act 82003 to ensure generation, and may approach the ministry for any necessary intervention in the case of an inter-state plant.
The ministry also stated that, depending on the demand assessment, relevant action may be taken to import coal in a transparent and competitive manner for blending purposes, as well as to address any shortfalls in coal availability.