WBPDCL achieves self-sufficiency in in coal supply for power generation

State-owned West Bengal Power Development Corporation (WBPDCL) has achieved self-sufficiency in coal supply for its thermal plants from its captive sources in the current fiscal, eliminating its dependence on Coal India Ltd, a top official said on Friday.

WBPDCL aims to produce around 20 million tonnes of coal in the current fiscal, up from 18.41 million tonnes in FY24.

"We have zero dependence on Coal India for coal supply from this fiscal. Last year, we procured 3.85 million tonnes of dry fuel from them," WBPDCL Director (Mining) Chanchal Goswami told PTI.

As of August 2024, dispatches from our captive mines have reached 9.1 million tonnes, he said on the sidelines of Assocham's "2nd Minerals and Mining Conclave 2024".

Goswami, also a former CIL professional, said that three-fourth of WBPDCL's coal production comes from Pachwara North in Jharkhand.

The block is expected to produce 15 million tonnes in FY'25 out of the total 20-21 million tonnes.

Other blocks include Barjora, Gangaramchak, Tara East, Tara West, and Barjora North. WBPDCL operates these mines through Mine Developer and Operators (MDOs).

WBPDCL's installed capacity stands at 4,265 MW from seven thermal power units across five plants in the state. In the current fiscal, an additional 660 MW thermal capacity from Sagardighi is expected to be added by FY 2024-25.

In 2023-24, Pachwara North produced 13.69 million tonnes of coal, while Gangaramchak produced 3 million tonnes, and Barjora North approximately 1 million tonnes.

In the current fiscal, as of August FY25, production reached 5.1 million tonnes, while dispatches were 9.1 million tonnes, reflecting higher dispatches due to large pithead stocks.

However, Goswami highlighted that production ramp-up is hindered by inadequate evacuation infrastructure.

"Coal from Pachwara North has to be transported 50-60 km before it can be loaded in rakes. Environmental issues surrounding road transport pose a significant bottleneck," he explained.

Looking ahead, WBPDCL is planning to submit a mining proposal for 22 million tonnes, and expects excess coal production than its captive requirements for commercial sales.

Meanwhile, Girishkumar Kadam, Head of Corporate Ratings at ICRA, stated that the power sector, including renewables, has been performing well, with more rating upgrades than downgrades.

"The key reasons for this satisfactory performance include better track records, ownership, debt refinancing, and improved realizations for thermal power generation companies. We maintain a stable outlook for generation and transmission sectors, but our outlook for distribution companies remains negative," Kadam said.