The Union power ministry has set up a special committee under the chairmanship of the power secretary to suggest alternate ways to meet the deadline set by the environment ministry for mandatory use of washed coal.
Official sources said the committee was constituted after attempts to persuade coal companies to use washed coal failed. The committee is examining the possibility of meeting the stipulation by blending and selective mining. It is expected to submit its report by early next year.
The environment ministry's order requires that all power houses located within 1,000 km from the source of mining, as well those located in urban and sensitive areas, should use coal having an ash content of less then 34 per cent. The order comes into force on June 1, 2001.
"We have made several attempts to sell them (power companies) washed coal but our efforts have proved futile. The power companies, in particular the state electricity boards (SEBs), have vehemently protested against our attempts," an official source said.
The source indicated that the SEBs had protested against coal companies selling them the high cost coal, especially when cheaper options, like imported coal, were available. For instance, Punjab State Electricity Board opted for imported coal when offered washed coal as an option.
Further, because of their poor financial health, the power companies are not willing to pay for the washed coal.
The cost of coal on account of washing is expected to go up by Rs 120-Rs 240 per tonne.
Coal India had incidentally entered into a memorandum of understanding with five private parties to set up these washeries on a build-own-operate-transfer basis, but only two of them have materialised till date.
To find a way around the problem, the coal companies last year decided to examine the possibility of blending high grade coal, which contains low ash, and low grade coal with high ash content.
The Central Mine Planning and Design Institute Ltd, a subsidiary of Coal India Ltd, had been commissioned to study the issues in detail.
The institute concluded that blending of various varieties of coal was a viable option compared with washing of coal.
The study has identified three points located in the north, south and east of India where coal can blended.
The locations selected were Katni, Mughal Sarai and Chennai. It was proposed that coal for power stations in the respective regions would be brought to these places and then blended.
This idea had been communicated the power producers of the northern region late last year. However, even this option was met with resistance from SEBs, including the Punjab SEB, which were against coal companies imposing the additional cost of blending.
To set up blending facilities in Mughal Sarai an investment of Rs 400 crore was required, implying that the cost of coal would have gone up by Rs 70 per tonne.
"As a result, we have to explore various other options to meet the requirement. The committee has all but abandoned the washery option, since it is proving to be uneconomical," a source said.
Coal Controversy
* The committee has been constituted after attempts to persuade coal companies to use washed coal failed
* The committee is examining the possibility of meeting the stipulation by blending and selective mining
* It is expected to submit its report by aearly next year
* SEBs have protested against coal companies selling them high-cost coal. They prefer to buy imported coal intead
* Power companies are also not willing to pay for washed coal because of their poor financial health. The cost of coal on account of washing rises by Rs 120-Rs 240 per tonne
* The environment ministry's order requires all power houses located within 1,000 km from the source of mining, as well those located in urban and sensitive areas, to use coal with an ash conten
