Amid the controversy over the allocation of coal blocks by the government, the power ministry has said it expects Coal India and its subsidiaries to supply 347 million tonnes (mt) of coal this financial year, compared with 312 mt in 2011-12, a rise of 10.1 per cent. For this, 70 mt would have to be imported through MMTC and State Trading Corporation, it stated. For captive coal mines allocated to power utilities, the ministry has projected production at 25 mt.
These estimates are part of a framework document for 2012-13 approved by Power Minister Veerappa Moily and Power Secretary P Umashankar. The ministry’s estimates are crucial, especially as a loss of about 4.2 billion units of power was recorded in the April-June period, owing to lack of adequate coal.
The ministry also indicated it would try its best to achieve production of 468.74 mt. On condition of anonymity, a ministry official told Business Standard, “The ministry would pursue the availability of 347 mt of coal this year from Coal India and its subsidiaries with the coal ministry. Besides, all efforts would be made to ensure an early clearance of coal blocks. Long-term arrangements for the coal-based capacity addition programme in power generation would be finalised.”
NTPC, India’s largest power generation company, has proposed capacity addition of 4,160 Mw this financial year. An NTPC official said the company planned to procure about 137 mt of coal from Coal India and its subsidiaries, adding it would import 16 mt this financial year. “Coal prices are falling, and NTPC does not see any problem in importing coal during the year. As far as availability of coal from Coal India and its subsidiaries is concerned, NTPC expects supply at 347 mt for central and state sector utilities,” the official said.
Maharashtra State Power Generation Company (MahaGenco), which has approached the Competition Commission of India challenging Coal India’s monopoly, argued Coal India and its subsidiaries should ensure supply of best-quality coal. “We will continue to pursue our demand in this regard with the coal ministry, as well as Coal India and its subsidiaries. This is to avoid a loss of generation due to poor-quality coal,” said a MahaGenco official.
The ministry’s document says supply of additional gas of about 60 million metric standard cubic metres a day would be sought, under the administered price mechanism and from the KG-D6 basin.
The official said the ministry would urge Bharat Heavy Electricals Limited to ensure timely supply of equipment.
