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Thursday, September 16, 2021

Boost output or face supply cuts: Govt to gencos amid shortage

A sharp increase in demand has led to four thermal power plants having zero days of coal stock as of September 5.

By: ENS Economic Bureau | New Delhi |
Updated: September 7, 2021 10:34:35 am
The government has also directed distribution companies to source power from power plants that use imported coal to meet their demand within two weeks or face a cut in the supply of domestic coal to these plants.

The central government has directed captive coal mines of power generation companies to hit 85 per cent of their production target within a week or face a cut in coal supplies as part of efforts to ensure adequate power supply by power generators with low coal stocks.

The government has also directed distribution companies to source power from power plants that use imported coal to meet their demand within two weeks or face a cut in the supply of domestic coal to these plants.

A sharp increase in demand has led to four thermal power plants having zero days of coal stock as of September 5, and 12 thermal plants having only enough coal stock for one day according to the Central Electricity Authority.

“Captive coal mine companies have been given a notice of one week to increase their production to more than 85 per cent of their targets’.If they fail, the supply of linkage coal to such states/gencos would be regulated,” the Power Ministry said in a release Monday.

The government has also ordered that coal supply be cut for power plants with coal stocks of over 10 days and a peak load factor under 40 per cent. Supply is also going to be cut for plants with stocks of more than 18 days with plants having stocks between 11and 18 days, and PLFs over 40 per cent set to see their coal supplies halved in decisions taken, after Power Secretary Alok Kumar reviewed the coal stock position at thermal power plants.

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