News Analysis India

Tag: Coal India

  • UP to buy imported coal to manage looming power crisis; would burn a hole in consumers’ pocket  

    Express News Service

    LUCKNOW: The Yogi Adityanath government, which had decided not to buy imported coal for power generation two months back despite consistent pressure from the Centre, has finally agreed to the proposal. 

    The state government has now decided to buy 5.46 lakh metric tonnes of imported coal through Coal India at a cost of Rs 1098 crore.

    As per the senior officials, the state government has decided to provide a subsidy of Rs 1098 crore to UP Power Corporation Limited (UPPCL) in order to save the consumer from bearing the brunt of the hike in the cost of power production with imported coal.

    The decision to this effect was taken by the state cabinet at a meeting held on Tuesday night. The decision may not impact the consumers immediately but in due course, it would burn a hole in the consumers pocket as the cost of the imported coal is Rs 20,000 per tonne as compared to Rs 3000 per tonne of domestic coal.

    As per the sources, the decision has been taken to fulfil the coal requirement of UP Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) and Independent Power Producers (IPP) for August and September. The coal requirement of both UPRVUNL and IPP is 136.52 lakh metric tonne of which 5.46 lakh metric tonne of imported coal is just four per cent.

    It may be mentioned that in order to overcome the power shortage, the Centre had directed the states to buy imported coal for their respective thermal power stations two months back. The sources claim that the Union power ministry had been exerting pressure on the state government to buy imported coal or else its quota of domestic coal would be reduced. 

    ALSO READ | Adani among 11 bidders in race for Coal India’s Rs 3,100 crore import tender 

    In May, the Yogi government had made it clear to the Centre that it would not buy the imported coal as it would put an extra burden on the consumers. However, the state government had to review its decision due to the looming paucity of coal in the coming months.

    Actually, UP thermal power stations are supposed to get their allocated quota of 15-17 racks of domestic coal per day but during the crisis, Coal India cut it down to 11-12 racks per day.According to Additional Chief Secretary, power, Awanish Awasthi, the decision to buy imported coal has been necessitated by the cut in the allocation of domestic coal for UP thermal power stations by Coal India. It could have resulted in acute power crisis in the state in days to come.

    In fact, the cut in domestic coal by 3-4 racks per day by the centre would have impacted the power generation in the state during rainy season of August and September. Now the state government has conveyed its decision to buy imported coal to the centre which will restore the domestic coal quota of UP.

    Meanwhile, the state government, though would bear the added burden by giving the subsidy of Rs 1098 crore to UPPCL for now, it has made it clear to the managing director of the corporation to present a proposal for tariff revision before the UP Electricity Regulatory Commission (UPREC) due to the rise in coal procurement expenditure.

  • In a first, Coal India issues tender to import over 2 million tonnes of coal 

    Express News Service

    NEW DELHI: Amid the reports of coal shortage in the country, Coal India Limited (CIL) on Thursday informed it has floated an international tender to import 2.416 million tonnes (MTs) of coal on behalf of the state generating companies (gencos) and independent power plants (IPPs). This is the first time India’s largest coal producer issued a tender to import coal.

    “In a first ever, Coal India Limited (CIL) on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.416 million tonnes (MTs) of coal,” said the company in a statement.

    CIL will source coal on behalf of the state generating companies (gencos) and independent power plants (IPPs) based on the indents received from them. It is for the July-September period of the current fiscal year.

    There is a provision in the tender to accommodate a variation of above or below 30% of the bid quantity. The coal being sought is 5000 GAR (gross as received) thermal grade coal.

    As the coal shortage continues to impact the thermal power plants, the power ministry asked the state gencos to import coal for blending purposes. The ministry, in its order on 18 May 2022, also warned the power generators if orders for coal imports are not placed by 31 May 2022, the defaulter gencos will have to increase their imports to the extent of 15%. Also if blending with domestic coal does not start by June 15, the domestic allocation of the concerned defaulters’ thermal power plants will be further reduced by 5%.  

    The government had nominated CIL as a centralized agency to augment coal supplies to state gencos and IPPs through the import of coal. CIL in its Board meeting held on 2 June had given its nod for the company to proceed ahead with the issuance of two international tenders for sourcing coal from overseas, a short term and a medium-term tender. The current short term tender for the import of coal, for Q2 of FY’23, is source agnostic. This means the coal can be sourced from any country.

    “Though coal import is an uncharted terrain for CIL, within a week of receiving indents from the 7 State Gencos and 19 IPPs, for a total of 2.416 MTs of coal, the company on a war footing has finalized and floated the tender,” said CIL.

    The company said the last date for the receipt of bids is 29 June 2022. There is an option of a pre-bid meeting on 14 June 2022 to seek clarification on any nuances of the tender.  After the price discovery, CIL shall immediately execute a contract with the successful bidder for the supply of coal. Then the state-owned coal miner shall enter into a back to back agreement with state gencos and IPPs to whom coal has to be supplied.

     The coal imported shall be routed through 9 ports located on the east and west coasts of the country. The successful agency, selected through the bidding process, shall deliver coal to the doorstep of the power plants of state gencos and IPPs.

    However, the industry experts are of the view that the government should bear the difference between the landed cost of imported coal and the landed cost of domestic coal. “Such cases Ministry of Power should bear the difference of the landed cost of imported coal and landed cost of domestic coal and State Gencos should not be punished because of none of their fault,” said Shailendra Dubey Chairman of All India Power Engineer’s Federation (AIPEF).

    Meanwhile, according to the Central Electricity Authority’s daily coal report ( 7 June 2022), the coal stock at 95 out of 173 thermal power plants is at critical levels. 

  • India has coal stocks for more than 30 days, no need to panic: Government officials

    By ANI

    NEW DELHI: India has enough coal stocks to meet more than 30 days of demands and there is no need to panic, Government sources told ANI. Sources said that 72.5 million tonnes (mt) of coal stocks are lying with Coal India Ltd.

    On average, power plants in India is having coal stock of 22 mt and on an average daily 2.1 mt coal is replaced with plants. So no shortage of coal will arise in the country, sources said. Power plants in India still have 10 days of stock and the country has coal stock of more than 30 days, the sources added.

    Another top official told ANI that there is no coal shortage, especially in Maharashtra. The government has directed the states to review the PPA with power plants and Maharashtra is already reviewing it.

    Energy demand rose due to early summer and the recovery in the economy. Coal production has increased 20-22 per cent in the month of April itself. The Ministry of Railways also increased the availability of rakes by 20 per cent.

    Earlier All India Power Engineers Fedration has said that Thermal Power plants across the country are grappling with coal shortages, indicating a looming power crisis in the country.

    Shailendra Dubey, Chairman of AIPEF said that as per Central Electricity Authority’s latest daily coal report, the coal stock at 81 out of a total of 150 thermal power stations using domestic coal is critical as per guidelines. The condition of the private sector thermal plants is equally bad as the coal stock of 28 out of 54 plants is in a critical stage.

    AIPEF Chairman said in a statement that coal inventories held by Indian power plants remain tight at nine days’ worth of stock as of mid-April and could result in power outages, If coal supplies do not improve, this could become another “stagflationary shock,” he said.

    Electricity demand has shot up due to the reopening and as the country heads towards the peak summer season, but supply has been disrupted due to the reduced availability of railway rakes to transport coal and lower coal imports.

    He said that in the northern region, the worst suffering states are Rajasthan, Punjab, Haryana and UP. In UP coal stock is left for 7 days, in Haryana coal stock is for 8 days, in Rajasthan Coal stock is for 17 days as against the standard norm of 26 days coal stock.

    Andhra Pradesh, Tamil Nadu, Telangana, Madhya Pradesh, Maharashtra, Gujarat, Jharkhand and Chhattisgarh are the other states facing a coal crisis. The lack of railway rakes is also adding to the crisis. Presently, only 412 rakes are available as against the daily requirement of 453 rakes.

  • Ranchi Diary: Coal India launches software for assessment of coal resources

    Express News Service

    RANCHI: Coal India Ltd (CIL) has launched software named “Spectral Enhancement” (SPE), which will help in identifying thin coal seams under the earth crust and improve assessment of coal resources using seismic survey during coal exploration process.

    CIL’s research and development (R&D) arm Central Mine Planning and Design Institute (CMPDI) has developed this first-of-its-kind software in association with Gujarat Energy Research and Management Institute (GERMI).

    The company will file for its copyright protection. This ‘Made in India’ software will also help in saving time and cost of coal exploration and thus boost the mission of ‘Atmanirbhar Bharat’ in coal production.

    Separate room for offering Namaz at Jharkhand Assembly

    The Jharkhand government has issued an order to set aside a room for Muslims to offer Namaz in the newly constructed Assembly Building in Ranchi, drawing criticism from BJP leaders who also demanded separate space in the building to set up a temple for Hindu deity Hanuman. Though, the order was issued on Thursday, itas made public only on Saturday. Congress welcomed the decision, while the BJP accused Hemant Soren-led alliance government of playing the politics of religious polarisation and appeasement.

    Jharkhand plans ‘Sahai’ to promote sports in Naxal-hit areas

    Aiming to reduce the gap between the people and the police through sports while grooming budding sportspersons, Jharkhand government will soon launch a special scheme ‘Sahai’ to promote sportspersons in the Maoist-hit areas.

    Under the scheme, potential sports talent will be identified from the Panchayat level and taken to the Block level and District level where they will be prepared for national and international sports events. Officials have been asked to work extensively to connect youth below the age of 19 with the ‘Sahai’ scheme. ChiefMinister Hemant Soren has directed Sports Department to work on a special sports scheme named ‘Sahai’ (assistance) for youth from Maoist affected areas, they said.

    ‘Chala Akhra Khorha’ promoting tribal art and culture

    A Ranchi based society — ‘Chala Akhra Khorha’ has been helping tribal people financially by selling their items including tribal jewelry, clothes, musical instruments, literature, handicrafts, metal crafts, painting and organic food items to promote tribal art and culture.

    According to officials of the society, it was started at a very small scale in the year 1998, but gradually it was developed into a store helping out tribal people financially by selling their items.

    The society has branches in every district of Jharkhand. The society is also delivering the tribal arts and artifacts to Chhattisgarh, Assam and Bhutan, besides fulfilling the demands inside the state.

  • Apprentices besiege Coal India headquarters Kolkata, apprentices of Korba were also involved

    Apprentice personnel laid siege in front of the Coal India headquarters in Kolkata demanding regularization. The apprentices say that many posts of employees in the mine are vacant and regular trend works are being done. Shortage of manpower should be overcome by regularizing the apprentice after training. A large number of apprentices also joined Korba region in the movement.

    A large number of apprentices are working in other subsidiaries of Coal India including South Eastern Coalfields Limited (SECL). These apprentices have demanded regularization from management. After demonstrating in front of SECL Bilaspur headquarters, agitation is now being done in front of Coal India headquarters. On Monday, about five thousand apprentices from all the subsidiaries participated under the leadership of Sushil Kumar Nirmalkar, national president of ITI Apprentice Association.

    Sushil said that the memorandum has been submitted to the management after performing the siege throughout the day. With this, it has been said that if their demand is not met, then there will be agitation in the mine area and coal production and dispatch will be stopped from the mine.

    He said that due to the continuous retirement of the workers working in the coal mine, manpower has reduced considerably and many regular trend works are being done through outsourcing. The apprentices are also working like regular personnel. They say that they will have to find work after apprentice. Therefore, the vacant posts in SECL should be recruited on priority basis, but the management is not taking positive initiatives on this.