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Coal Ministry says coal shortage not behind low generation at UP state-run power plants, flags idle captive coal block

The coal ministry says coal shortage is not behind low generation at Uttar Pradesh state-run plants, flags captive block idle over 10 years

EW Bureau

New Delhi: The Ministry of Coal has said lower generation this month at the thermal power plants of Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) is not due to a coal shortage. In a statement on Thursday, the ministry also said the Saharpur Jamarpani captive coal block has shown no progress towards operation in more than 10 years. The ministry allotted the block to UPRVUNL in 2015, and it urged the state to speed up the block's development.

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"More than 10 years since the allotment, no progress has been made towards operationalisation of the block, on account of a lack of requisite initiative by UPRVUNL," the statement said. As a result, according to the ministry, Coal India Limited (CIL) continues to meet the entire coal requirement of Uttar Pradesh's power plants. It said 14 other coal blocks were allotted for captive use in the power sector on or after the date Saharpur Jamarpani was allotted. All 14 are now operational and producing coal for their end-use plants.

The ministry said it was responding to recent media reports that Uttar Pradesh was facing a severe power shortage because coal supplies had been disrupted. According to the ministry, the plant load factor of UPRVUNL's thermal plants for the current month stands at only around 48 percent, even though their coal stock has risen above 8 lakh tonnes. "The lower generation during the current month cannot, therefore, be attributed to inadequate coal availability at the plant end," the statement said. "Improvement in generation would require the State to address operational constraints at its generating stations and ensure optimal utilisation of available coal stock."

Stock at plants

The ministry said none of UPRVUNL's thermal power plants was in the critical-stock category as of September 15. Coal stock at the plants rose from 7.25 lakh tonnes on September 1 to 8.41 lakh tonnes on September 15. Over the past seven days, according to the ministry, the plants received an average of around 0.90 lakh tonnes of coal a day. That was more than their average daily consumption of around 0.83 lakh tonnes, which the ministry said reflected "a continuing build-up of stock."

Rail supplies have also held up, the ministry said. Over the past 10 days, CIL sent an average of around 17.7 rakes a day to UPRVUNL's plants. On September 3, CIL offered extra coal by road and rail-cum-road mode to all generating companies and independent power producers, UPRVUNL among them.

The ministry also pointed to unloading constraints at several UPRVUNL plants. Because of these constraints, the Railways periodically restricts how many rakes it places at the plants. According to the ministry, this limits any further increase in coal supplies.

Captive block yet to start

Saharpur Jamarpani lies in Dumka district, Jharkhand, and holds reserves of more than 973 million tonnes, according to the ministry. It allotted the block to UPRVUNL on August 13, 2015, under the Coal Mines (Special Provisions) Act, 2015. The allotment was made specifically to meet the coal needs of UPRVUNL's thermal power projects.

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The ministry has advised Uttar Pradesh "to take urgent steps towards development of the Saharpur Jamarpani block, so as to reduce its dependence on external sources and secure long-term fuel security for its power plants." Meanwhile, it said CIL would continue to supply the state. "The Ministry of Coal and Coal India Limited remain fully committed to supplying coal to the entire country, including the State of Uttar Pradesh," the statement said.

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