NTPC fails to make use of CIL offer of additional coal

27-Nov-2018

State-owned power major NTPC seems to have failed to make much use of Coal India’s (CIL) offer to lift an additional five million tonne fuel from mines. However, the fuel crisis has eased marginally because of lower demand with the onset of the winter and higher supply by CIL.

On October 23, Coal India invited NTPC to lift an additional five million tonne (mt) coal from approximately 21 mt pit-head stock, within 30 days, to help mitigate the coal crisis. This was over and above the prevailing and committed supplies to NTPC.

Credit offer

The power major was offered 1.5 mt from Amrapali and Magadh coal mines of Central Coalfields (Ranchi), 0.5 mt from BCCL (Dhanbad), 0.5 mt from NCL(Singrauli), etc. Coal could be hauled by using any mode of transportation and using CIL’s facility.

There was no destination-wise restriction. NTPC could use the fuel in any of its plants. Also unlike the usual ‘cash and carry’ payment system, the power major could take fuel on credit.

The intervention was timely, as a number of NTPC generation facilities were having barely two days’ fuel stock, which was lower than the then industry average of six days’ stock.

However, even after a month, NTPC seems to have failed to make much use of the facility. While responses were not available from the power major, coal sources confirmed that its pithead stock stands still at 21 mt, despite rise in daily supplies from 1.6 mt to 1.8 mt.

The rise in CIL supplies seems to have a trailing effect on improving fuel stock position at the power plants.

According to the Central Electricity Authority (CEA), from an average of six days’ stock, power plants are now having seven days’ stock. The number of non-pithead power stations having less than four days’ stock is down from 22 to 14.

New rail line

The supply situation will ease further once fuel starts moving from Amrapali and Magadh coal mines of CCL at greater speed. The construction of 44-km-long Tori-Shivpur line was over a few months ago. CCL has finalised contracts to evacuate 10 rakes a day.

According to company sources, the movement is still slow as the contract is just operationalised and would peak with time. Meanwhile, Jharsuguda-Barapali rail-link, which was completed earlier this year, is witnessing movement of five rakes a day.

Source: THE HINDU BUSINESSLINE