Centre to regulate coal supplies to non-conforming state utilities

New Delhi: The Centre has decided to regulate coal supplies to state utilities not conforming to new norms on utilisation of coal and generation of power, in a move aimed at preventing thermal power plants facing fuel shortages amidst rising demand for power.

As per the decisions taken post a review meeting taken by Power Secretary Alok Kumar to assess the availability of coal for thermal power plants, 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. In case this is not achieved, the Centre would regulate supply of linkage coal to such states/gencos.

Supply of domestic coal to states would also be regulated in case they fail procure power from imported coal-based power plants with which they have power purchase agreements (PPAs). State discoms have been given a notice of two weeks to meet their power demand from these power plants.

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In another decision, power plants having coal stock of more than 10 days but where plant load factor is less than 40 per cent, will face regulation of coal supplies to the extent of 100 per cent. The coal supply to the power plants having coal stock of more than 18 days will also be regulated to the extent of 100 per cent.

Moreover, the coal supply to the power plants having coal stock ranging from 11 days to 18 days and having PLF more than 40 per cent, will be regulated to the extent of 50 per cent.

At the meeting, the Power Secretary reviewed the coal stock position at thermal power plants and the production of coal from captive coal mines.

This meeting came on the directions of Union Power Minister R.K. Singh at the review meeting taken by him on September 3.

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