Poor Coal Supply May Fuel Ap Row With Gowda

The units in question are the Fertiliser Corporation of India's (FCI) urea plant and the 2,100 mw thermal power plant of the National Thermal Power Corporation (NTPC).

Workmen here feel that coal meant for their respective units is being diverted to Karnataka, chiefly to the Raichur Thermal plant, to maintain power supplies in the Prime Minister's home state. While production is nil in the urea plant, in the NTPC power complex, two units, one of 500 mw and the other of 300 mw remains shut down. A closure was planned early this year for normal annual maintenance when monsoon pushes up hydro generation. It was then advanced to ration available coal.

Workmen in both the plants complain that their units were set up in the coal belt mainly to ensure that they did not suffer from want of feedstock. But this has not helped as political decisions are being taken in Delhi, they say.While NTPC is not suffering much as it also caters to the power needs of Karnataka, the main casualty is the urea plant.

We have not produced a single pellet of urea since April 1 for want of coal, general manager S Biswas said. FCI do not owe Singareni Collieries any arrears. In fact, an advance of Rs 70 lakh is still with the Singareni management. We take coal on a `cash-and carry basis', Biswas said.

The area plant has linkage for 3,000 tonnes of coal per day from the Singareni Collieries Company. But it is getting only 300 tonnes per day. We have asked our Chief Minister to intervene since the Telugu Desam is part of the United Front. But if nothing happens, we shall start rail roko' and stop the railway rakes from proceeding to Raichur with coal without meeting our needs, vice-president of the FCI Employees Union, the recognised union affiliated to the labour wing of the ruling Telugu Desam M Gopala Rao said. General Secretary of the Union Param Kanakiah said after bringing the matter to the chief minister's notice there was a slight improvement in coal supplies to the plant.

We shall watch the situation and if we are able to build up some sizable stocks, we shall start the boilers. It takes one week to eight days for urea to come out after the boilers are fired, says Biswas.

Meanwhile, the workmen are eagerly awaiting the Union Government's decision on the FEDO (FACT Engineering and Development Organisation) findings on changing the feedstock from coal to naptha.

A four-member technical committee from FEDO visited the factory in the first week of August and it will submit its findings to ICICI by October-end. After the recommendations are studied by ICICI, the government will take a fresh investment decision. Biswas said the technical team felt the urea plant as well as the boilers are in good condition and will last another two decades. However, the coal gassification plant, the main proceeds for coal as feedstock will have to be discarded and a new steam reformer set up.

He said that together with a new 38 mw captive power plant and the new steam reformer, the change in the feedstock from the existing coal to naphtha would involve fresh induction of Rs 600 crore. ICICI and the government will have to work out the modalities, he said.