August 22, 2008

Critical coal stock levels at 29 power plants to push up imports

It is reported that the Indian government is banking on a contingency plan aimed at improving the situation at critical power stations by redistributing coal supplies from domestic sources as the dwindling coal stock position at key thermal power stations is worsening.

As on November 22nd 2007, the coal stock position at 29 thermal stations across India, with a total installed capacity of 29,137 MW, had been declared as critical, where coal stocks in these plants was expected to last less than 7 days. Of these, the coal stock position at 18 stations has been termed as super critical, with stocks expected to last less than 4 days.

Thermal stations are normally expected to hold coal stocks of between 15 and 30 days, depending on the location of the project. While pithead stations should hold stocks of 15 days or more, stations located away from the mine are expected to hold coal stocks for 21 to 30 days.

According to government officials, the shortages are on account of a lower coal production by Coal India Limited between April and September 2007, mainly with excessive monsoon rains throwing production schedule out of gear.

Meanwhile, the power ministry and the infrastructure constraints review committee in the cabinet secretariat have asked generation major NTPC Limited to import coal through the western coast to ease the port congestion at Haldia and Paradip ports and to overcome constraints in transportation by Indian Railways from these ports on the eastern coast. Also, all state electricity boards and generation utilities have been asked to expedite coal imports.