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Coal, Power Issues Take a Back Seat

  • The political crisis gripping the United Progressive Alliance has changed the Union government's priorities, with important issues like power and coal shortages taking a back seat.The government's lack of seriousness in dealing with the problem can be gauged from the fact that a crucial meeting, to be presided over by Prime Minister Manmohan Singh to review coal and power shortages, has been postponed at least half-a-dozen times in the past few months for some reason or the other. This despite the fact that power plants, both private and government, have been grappling with a severe coal shortage, leading to a dip in generation and a shortfall in the availability of electricity.
  • The power producers, including NTPC, have been faulting Coal India Limited for its failure to fulfil its obligations under fuel supply agreements. Coal production declined during April-October, with stocks of many thermal plants turning critical. The Planning Commission has indicated that the gap in the coal production target is likely to be around 137 million tonnes during 2011-12, and it could reach 240 million tonnes by 2016-17.Coal India has already indicated that it will not be able to meet the targets for production during the 11th Plan, prompting the Power Ministry to ask end-users to go for imports. According to the provisional figures, the target for 2010-11 was 572.37 million tonnes but production was 533.08 million tonnes. Likewise, the target proposed during 2011-12 was 554 million tonnes but only 262.03 million tonnes has been achieved till October.
  • As of November 21, 36 power stations, aggregating 44,387 MW, had a coal stock sufficient for less than four days, against the mandatory requirement of 15 days' stock. The reasons are inadequate transport of coal from mines to railway sidings; inadequate crushing capacity in the mines; law and order problems in Central Coalfields Limited and Mahanadi Coalfields Limited; and excessive rains in the coalfields of Northern Coalfields Limited, Central Coalfields Limited and Mahanadi Coalfields Limited.As per an assessment made by the Central Electricity Authority, the requirement of the plants, dependent on indigenous coal, has been estimated at 457 million tonnes during 2011-12. Against this, the availability of coal from the indigenous sources has been estimated at 405 million tonnes, and the rest has to be met through imports.
  • “Important issues…such as coal imports, augmentation of domestic production, hastening of environmental clearances for captive coalmines and open access have been pending a decision for long. But in the current political climate, these important economic and policy issues have been pushed to the background. These are impacting both coal and power production and could put a question mark over the targets set for the future,” a senior official remarked.During April-October this year, the country experienced a peak power shortage of 14,674 MW (11.4 per cent-provisional) and energy shortage of 35,067 MW (6.6 per cent-provisional). While the energy requirement was 533,332 million units, the availability was 498,265 million units, with the shortage being 35,067 units. Similarly, the peak power demand stood at 128,907 million units, but the availability was 114,233 million units. The shortage was 14,674 million units. The power deficit has been reported across the country, especially in the south. The situation is likely to get aggravated in view of the decline in hydro-power generation with the onset of winter.
  • The power utilities reported a generation loss of 5.3 billion units during April-October this year, including 188 million units and 48 million units in NTPC's Singrauli and Rihand stations. “Immediate action and decisions are required to set right the situation, or things will start falling apart, affecting the manufacturing output, and consequently the economic growth,” a Power Ministry official said.

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