PMO strictures force CIL to step up supplies to power units

Despite 347 MT target for 2012-13,gap pegged at 80 MT

With the PMO tightening the screws,Coal India Ltd CIL has offered to step up its fuel supplies to the power sector at 347 million tonnes during the current fiscal 2012-13,up from the 312 million tonnes MT that it offered last year.

Despite the assurance of higher coal supplies,made by CIL at a May 14 review meeting taken by the Prime Ministers Principal Secretary Pulok Chatterji,the countrys power projects would still be faced with a deficit of close to 80 MT,much of which would have to be bridged by way of imports. While higher supplies could come in as a much-needed reprieve for fuel-strapped thermal power plants across the country,power sector players contend that indications of the supply trends from CIL during the first couple of months of the fiscal 8211; in April and May 8211; have been less than encouraging. Along with the coal problem,there is also an issue on the gas supply front,because of which there could be a loss of generation about 10 billion units during the course of the year,according to estimates offered by the Power Ministry at the PMO meeting.

The Power Ministry had assumed supply of coal of 327 MT from CIL in its overall projection of electricity generation in 2012-13 920 billion units. CIL has now assured that it would supply 347 MT. If this increase were to come about,there would be an additional generation of about 17 billion units, an official involved in the exercise said. On a ballpark basis,it takes about 5,000 tonnes of coal to generate 1 megawatt MW of electricity.

In all,during 2012-13,the total requirement of coal of the power sector is pegged at 512 million tonnes. Of this,excluding the requirement of imported coal based projects 24 million tonnes,captive players 25 million tonnes and supplies from Singareni Collieries 37 million tonnes,the requirement comes to about 426 million tonnes.

Besides,imports to the tune of another 46 million tonnes of coal which is roughly equivalent to 69 million tonnes of indigenous coal on account of the higher calorific value of imported coal planned by power developers for blending during the year is factored in; the cumulative requirement comes to 357 million tonnes.