Captive power plants grappling with coal crisis

HARISH TIWARI

KORBA, Sep 13. Captive Power Plants (CPP) in the district, as well as other parts of the state, are battling against coal crisis. With the coal stock at CPPs reaching an all-time low, the industries based on them may shut down in the absence of adequate power supply. The condition shall prove disastrous with thousands of workers losing their livelihood, unless the government takes necessary steps on time. 


As per the information, SECL is not paying attention to the agreement for supplying coal to the CPPs. The state houses about 250 industries which generate electricity through CPPs. All these are struggling against coal crisis for past two weeks. On the other hand, SECL is paying least attention to the renewal of fuel sale agreement (FSA) with these industries. 


SECL has opted for E-auction to supply coal for these plants, rather than renewing FSA, but without adequate preparations. The auction tender for coal has not been issued so far but the CPPs are on brink of shut down. On the other hand, another subsidiary of Coal India- Mahanadi Coalfields Ltd (MCL) has already issued notice to supply large quantity of coal to CPPs through auction. This clearly highlighted the vast difference between the working of the two subsidiaries of CIL. SECL has neither renewed FSA nor taken an initiative to supply coal through auction. 


Sources reveal that annual coal production of SECL is around 150 million metric tonnes but this year the current production stands around 45 million metric tonnes. This roughly translates to the fact that after two quarters of the current financial year, SECL has managed to complete only 30 percent of its annual target. This shortage is now having adverse effect on power requirements of the consumers. An inside source even revealed that a central team came down to inspect Kusmunda and Gevra projects, owing to irregularities in production. 


Rise in demand of electricity generally signifies improvement in economy, but the lack of fuel for power generation is slowing down the pace of economic development. As per the statistics by Central Electricity Authority, two third CPPs of the state have coal stock for less than a week. 


The need of the hour is that the state government instructs SECL to fulfill the coal requirement of CPPs. Also, the coal being exported to other states must be stopped immediately. 


It needs a mention that the recent auctions by SECL may suffice only 1 percent of the coal requirements of the CPPs. The annual requirement of these CPPs is around 80 lakh tonnes, but the auction notice by SECL speaks of only 3.50 lakh tonnes. 

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