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The move is likely to translate into a reduction of around Rs 12 paisa per unit in their cost of electricity supply as coal-based capacity accounts for nearly 70% of total generation at an all-India level, according to ICRA Ltd.
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Justifying its reversal of the mandate, the environment ministry said current exposure levels provide no credible evidence to suggest that sulphur dioxide (SO₂), under prevailing ambient conditions, is a major public health concern.
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NTPC’s new fuel sourcing strategy is a shift to a more market-driven approach and could be emulated by state and private companies to mitigate risks of supply chain disruptions
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This will be the first time in more than three years when the government will not impose such a mandate on domestic coal based power plants. The coal ministry has enough stock for power plants
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Union minister for coal and mines G Kishan Reddy said the ministry is also working on the plans for smooth supply and transportation of coal. Between April and November 2024, coal imports declined by 5.35 percent, saving approximately $3.91 billion (Rs 30,007.26 crore). Notably, coal imports for domestic power plant blending fell by 23.56 percent, he said.
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NTPC plans to expand Lara project’s capacity by another 1,600 MW, taking the total to 4,800 MW, making it the biggest thermal plant in India
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So far, 96 coal mines have been auctioned for commercial operations by the government. Out of these allocated 96 blocks, 12 blocks have got 'mine opening permission' and nine have started actual coal production, while the rest are under construction.
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Minister of Power Manohar Lal Khattar said National Electricity Plan 2023 to 2032 for central and state transmission systems has been finalised and is aimed at meeting a peak demand of 458 GW by 2032
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NTPC said it is targeting new thermal orders worth 15.2 GW in the coming years, and has also raised the ordering pipeline for its thermal capacity.
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The targets under the plan include ensuring mechanized loading/handling and evacuation of 90 percent of coal produced through first mile connectivity (FMC) by FY30.
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On March 4, Central Electricity Authority chairperson Ghanshyam Prasad said India's peak power demand this year could even hit the 260 GW mark.
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Through the policy, the government aims to shift from traditional road-based coal evacuation system to railway-based systems in FMC projects. It also talks about using waterways for coal transportation.
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This is the country’s cheapest purchase of any power plant. The deal stands at Rs 2 crore per MW, Punjab CM Bhagwant Mann said on January 1
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During April-October 2023, the average growth in coal-based generation, with respect to corresponding period of FY 23, was 8.6 percent and the depletion in DCB plants stocks was 15.3 million tons (MT), Singh said
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Data from the Ministry of Coal showed that domestic coal-based power generation from April to October 2023 reached 686.7 billion units (BU), reflecting an 8.88 percent increase from the 630.7 BU generated in the corresponding period last year.
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Given the country’s growing shift to renewable energy, the coal ministry has decided to foray into thermal power plants, and not just mine coal.
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The problem is that sufficient quantity of biomass pellet is not available in the country as of now, Union minister for power and renewable energy RK Singh said on August 4.
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During April-June 2023 period, 4,07,762 million units of electricity were supplied against the demand of 4,08,621 million units leaving a deficit of 858 million units or 0.2 per cent.
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The company has also sorted out most of the land acquisition issues for expansion of its lignite mine in Tamil Nadu's Cuddalore district, says Prasanna Kumar Motupalli. A section of the locals have been protesting against the project and in May, NLCIL had to shut five units of thermal power plant due to lignite shortage.
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In another modification of the policy, the MoP has directed that torrefied biomass pellets shall only be procured by utilities for which it is technically unavoidable. This change in the policy has been done because production of torrefied biomass pellets is currently limited in the country compared to its demand.
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The stock pileup has forced some mines to curtail production. Fewer railway rakes for timely transportation and spontaneous combustion, forcing the sprinkling of water to cool the coal, affecting its quality, are exacerbating the storage challenge
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Highlighting the negligible use of this route, Coal Secretary A L Meena said currently 400 rakes of coal are transported daily for the power sector, of which only two are through the RSR route.
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The coal stocks situation is “manageable”, as of now, data accessed by Moneycontrol shows. Of the 165 domestic coal-based thermal power plants in the country, 35 had critical stocks. About 33 million tonnes (MT) of coal are stocked at thermal power plants as on May 3.
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In November, the coal ministry in a statement said it would augment coal supplies at TPPs to 45 million tonnes by March-end. However, data showed that maximum coal stock at TPPs hasn’t crossed 31-32 million tonnes so far. Also, logistics around coal supply will continue to be a major bottleneck, despite increase in coal production as well as railway lines for its transportation.
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The government has asked all power plants that use imported coal to operate at full capacity, anticipating an increase in peak electricity demand in the country.
