Rationalisation of coal supply to thermal power plants saved Rs 33 bn: Govt

Rationalisation of sources of coal for power plants under PSUs has resulted in annual savings of Rs 33.54 billion, Parliament was informed on Wednesday.

"Coal India has rationalised sources of coal supply to thermal power plants of PSUs to the tune of 30.46 million tonne on the basis of requests received from them. They have resulted in annual potential savings of Rs 33.54 billion," Coal Minister Piyush Goyal said in a written reply to Lok Sabha.

In order to optimise transportation cost, an inter-ministerial task force (IMTF) was constituted by the coal ministry for a comprehensive review of existing coal sources as also feasibility for rationalisation of the sources.

The task force recommended rationalisation of existing sources on case to case basis for 19 thermal power plants of PSUs (public sector undertakings).

" This has resulted in rationalisation of sources of 24.238 MT of coal. In addition, an agreement was signed between Gujarat State Electricity Corporation (GSECL) and NTPC for swapping of 1 MT of domestic coal with imported coal," the minister said.

Further, the government has permitted flexibility in utilisation of domestic coal by allowing central/state utilities to use the fuel in such power plants to achieve overall reduction in cost of generation.

In addition to the above, it has been decided that all power plants located within 20 km from pit-head shall construct elevated closed belt conveyor within next two years (up to April 1, 2020), Goyal said.

"It is also decided that power plants located within 40 km from pit-head shall construct MGR (merry-go-round) within three years (up to April 1, 2021)," he said.

Power plants located beyond 40 km and up to 100 km, may also consider the option of MGR depending on the financial viability, he added.