CIL urging power generating companies not to regulate coal intake

State-owned CIL has been writing to power generating companies since October last year urging them not to regulate the intake of coal and build up stock at their end, so that the electricity production does not suffer during summmer and monsoon seasons, according to official sources.

The development assumes significance in the wake of power houses in the country grappling with coal shortages.

"CIL has been writing to power gencos (generation companies) since October 2020 not to regulate intake of their coal and build up stock at their end, so that generation do not suffer during the summer and monsoon season of 2021-22 due to coal shortage," one of the sources said.

Coal India Ltd (CIL) had last week said it has stepped up the supply of coal to the power sector in the first eight days of the current month, with an average of 1.39 million tonnes (MT) per day, clocking a growth of around 20 per cent y-o-y.

CIL has stepped up supplies to the power sector in the first eight days of September, clocking around 20 per cent growth at an average of 1.39 MT per day, the state-owned firm had said in a statement.

Till the same date of last year's September, the average supply per day had stood at 1.16 MT, CIL had said in the statement. "We are aiming to augment the total supply further to a level of 1.8 MT per day consistently and 1.45 MT per day to the power sector," the statement had said.

The state-owned company accounts for over 80 per cent of domestic coal output.

CIL had earlier said it has launched a multi-pronged effort to help build up coal stocks at power plants, and stressed that supply to the electricity units carrying stock of zero to six days has been prioritised by preparing a contingency supply plan to increase their stock.

"Launching a multi-pronged effort to help build up stocks at power plants, CIL has offered coal on the 'as is where' basis through the rail-cum-road mode from sources where high stock is available," the company had said.

"Twenty-three such mines carrying 40.3 MT (million tonnes) of stock as of August 16 were identified," CIL had said in a statement.

Supply to the power plants carrying stock of zero to six days has been prioritised by preparing a contingency supply plan to increase their stock, it had said.

In the case of availability issue at linked mines, alternative sources have already been allocated for smooth running of the plant, the company had said.