Coal supply drops at power plants as floods hit offtake, delivery

Coal supply at thermal power plants has dropped to a level that can only support 11 days of power generation. The mines are engulfed due to heavy rains. It has also flooded railway tracks and roads, which has hampered offtake and delivery of coal, reports the Economic Times.

Coal stock is at 'super-critical' level and at two of the 110 power stations nominated, it is enough to last for less than four days, the report said. The Central Electricity Authority (CEA) is monitoring the power stations.

Coal loading is down to 108-110 rakes a day from 123, at the advent of floods with many power stations not ordering any rake for last few weeks, the report said.

The CEA claims that there are units which also have low stock, but are not in the super-critical list. This is because these units aren’t operational due to outstanding dues or oversupply.

However, some firms also said that Coal India failed to meet its supply target resulting in closing down of coal plants, Ashok Khurana, director-general at the Association of Power Producers told ET.

Two units of GMR - GMR Warora Energy and GMR Kamalanga Energy - are shut due to coal shortage. Due to unavailability of coal in the open market, GMR had to declare less availability to long-term power purchase agreements.

The supplies from e-auctions are also irregular.

With the rise in power demand, all plants are now asking for coal, a Coal India executive said. Coal India provides 90 percent of the fuel required to run plants at 85 percent capacity for the units, which were set up before 2009. For newer units, it provides 70 percent of fuel.