Coal stocks fall at power plants as floods hit supply

28 Aug 2017

Coal inventory at thermal power plants has plunged to a level that can support only 11 days of power generation, down from 22 days a year ago, as rain-drenched mines and flooded railway tracks and roads impede offtake and delivery.

According to officials, coal stocks are at ‘super-critical’ level, or enough for less than four days, at two of the 110 power stations monitored by the Central Electricity Authority (CEA). There are other plants that have low stock of coal, but the CEA does not count them in its list of super critical units because of reasons such as non-payment of dues or not lifting the coal offered.

Coal stocks fall at power plants as floods hit supply “Power plants having less coal stock due to outstanding dues/supply more than committed quantity/not lifting offered coal are not shown as having critical /supercritical coal stock,” the CEA said in its report on coal stocks of thermal plants.

However, Ashok Khurana, director-general at the Association of Power Producers, said many firms have complained that Coal India has failed to meet its supply obligations, leading to plant closures.

As of August 16, two plants had no coal, five had enough to run for only a day, eight had only two days’ stock, and another 13 had stock for just three days. A dozen more had stocks that would last for four or five days. A GMR Group spokesperson said one unit each of GMR Warora Energy Ltd and GMR Kamalanga Energy Ltd are shut due to coal shortage. Further, supplies of coal bought at e-auctions was also erratic, he said. “There is no coal in the open market as well. Under the situation we are forced to declare less availability to the long-term power purchase agreements we have with discoms at both the units,” he said.

A senior Coal India executive said loading had fallen to 108-110 rakes a day from 123 because of floods, and many plants had not ordered any rake for weeks. “Now with power demand on the rise, almost all plants have started to ask for coal at a time when supplies are hit,” he said, adding that supplies can increase after floods recede. Coal India supplies 90% of the fuel needed to run the plants at 85% capacity for units set up before 2009; and 70% of such requirement for newer plants.

Source-ET