Power Supply in India: 'Coal Received from Imports Being Pushed to Priority Sectors at Fast Pace'

New Delhi, April 29: With severe heatwave conditions leading to upscaled demand for power in the country, the Dedicated Freight Corridor Corporation of India on Friday informed that coal received from imports is being pushed to priority sectors on a fast pace.

In a conversation with ANI today, Dedicated Freight Corridor Corporation of India Director (Operations and BD), N Srinivas spoke on the coal supply situation in India and said, "Whatever amount of coal is being imported and reaching Indian ports, we are moving it to priority sectors."

"In the Western dedicated freight corridor, the whole movement of the coal supply chain is from ports to the plants which are mainly based in northern India. Imported coal, coming to Mudra or Kandla ports, is moving at a fast forward pace and we have given very clear instructions that this product has to move on priority. So, coal supply is moving forward on priority," Srinivas said.

"The train wagons are transporting coal running at a speed of around 100 kmph. You see that this is an automatic section. These goods train ensure definite transit assurance," he further added.

The official added, "We are now also moving at such a fast pace, particularly ports near power plants of Dadri, Jhajjar other Rajasthan area. The transit time has been reduced. Wherever there is coal shortage, we will ensure that coal supply is available. We will be able to move it fast and ensure that no power plant is shut down." Delhi Coal Crisis: Power Supply to Metro Trains, Hospitals Could Be Interrupted Due to Coal Shortage, Says Govt.

Amid the heatwave conditions, several states in India are facing frequent power outages due to the shortage of coal in the thermal power stations.

On this matter, Union Minister for Coal and Mines, Pralhad Joshi a few days ago asserted that there is no shortage of coal in the country. Amid the concerns over coal shortage in India as temperatures soar across the country demanding higher power supply, Prahlad Joshi mentioned that the country has 21-22 million tonnes of coal on average in thermal power plants.

On April 8, the Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi, approved the Ministry of Coal's proposal for providing a one-time window to the Central and State PSUs to surrender non-operational mines without penalty (forfeiture of bank guarantee) and without citing any reason.

This may release several coal mines which the present Government PSU allottees are not in a position to develop or are disinterested and could be auctioned as per the present auction policy. A three months' time will be granted to the allottee Government Companies to surrender the coal mines from the date of publication of the approved surrender policy, the government data said.

Post cancellation of coal blocks by the Supreme Court in 2014, to prevent immediate disruption of coal supplies to thermal power plants, the government have allotted many cancelled coal blocks to state and central PSUs on the allotment route. The allocation route was expeditious and it was expected that the coal requirement of State GENCOs would be met from those blocks. The revenue share payable by State/ Central PSUs is fixed on per tonne basis, unlike the private sector which has to bid.

Given the context of allocation of coal blocks at that point of time, conditions for times lines for operationalization of coal blocks were very stringent and firm leaving no wriggle room either to the successful allottee or the Nominated Authority. Penalization for delay in operationalization of coal mines has resulted in disputes and court cases.

Coal sector is a key to energy security for the country. In the approval, good quality coal blocks which were allotted early can be quickly recycled back after removing technical difficulties and adjusting boundaries and offered to interested parties under the recently launched commercial coal mines auction policy. Early operationalization of coal blocks will provide employment, boost investment, contribute to economic development of backward areas in the country, reduce litigation and promote ease of doing business leading to reduction in import of coal in the country.

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