Coal India Limited (CIL) to enhance production of domestic coal in the country

In order to ensure adequate availability of coal, Coal India Limited (CIL) has been impressed upon to enhance production of domestic coal in the country and power utilities have also been advised to enhance import of coal. 

Mr. Piyush Goyal, (Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) stated that in addition to above, with a view to monitor coal supplies to Power Utility Sector, an Inter-Ministerial Sub-Group comprising representatives of Ministry of Power, Ministry of Coal and Ministry of Railways has been constituted. This Sub-Group takes various operational decisions for meeting any contingent situations relating to Power sector including critical coal stock position. 

Further, CIL has offered all Power Generating Companies drawing coal under Fuel Supply Agreements (FSAs), to lift the coal on “as is where is” basis with the stipulation that they will make their own evacuation arrangements. This scheme was earlier implemented by the coal companies, has been extended for 2014-15 also. All TPPs including National Thermal Power Corporation (NTPC) having FSA from CIL sources have been informed to lift coal under this scheme by arranging their own logistics for movement from coal offered from various pithead locations. CIL has also offered 1 MT of coal from cost plus mines of Western Coalfields Limited (WCL) through short term Memorandum of Understanding (MoU) as extension of above scheme to power stations of NTPC presently facing critical stock issues arising out of less receipt of coal from other coal companies. 

During the year 2014-15, as against domestic coal requirement of 527 MiIlion Tonnes (MT), availability of domestic coal is 473 MT, leaving a shortfall of 54 MT. Supply of coal to Power Utility Sector from Coal India Limited (CIL) sources during April-June, 2014 has been 88.66 MT as against the Annual Action Plan (AAP) Target of 101.61 MT with a materialization of 87%. In order to meet this shortfall, Power Utilities were advised to import coal. During the period April-May, 2014 power utilities have imported 7.6 MT against pro-rata target of 9.0 MT.