New Delhi : The overall power supply position in the nation is comfortable with only a marginal gap between energy requirement and supplies, Parliament was informed on Monday.
The country’s power plants in the country were facing coal shortages in the month of September and October.
“The overall power supply position in the country is comfortable with only a marginal gap of about 0.5 per cent between energy requirement and energy supplied,” Coal Minister Pralhad Joshi said in a written reply in the Rajya Sabha.
Even this marginal gap is generally on account of factors, other than inadequacy of power in the country for the following reasons, i.e. constraints in distribution network, financial constraints, commercial reasons and outage of generating units among others, he said.
In order to meet the expected increase in power demand, several power projects have been planned and are in various stages of construction.
Hydro projects totalling to about 12,663.5 mega watt (MW), thermal projects totalling to about 31,665 MW and nuclear capacity of about 8,700 MW are under various stages of construction. Further, the Centre has also set a target of 175 Gigawatt (GW) renewable energy installed capacity by 2022.
The government has taken various measures for increase the coal supply.
In order to address the issues of coal supplies to power sector, an inter-ministerial sub-group comprising representatives from Ministry of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India and Singareni Collieries Company holds meetings regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to power sector, including critical coal stock position in power plants.
CIL had offered about 5.2 million tonnes (MT) of additional coal from its various subsidiaries to states, central gencos for lifting through RCR/road mode.
In addition to Annual Contracted Quantity (ACQ), coal has been offered under RCR mode on ‘as is where basis’ to build up stock at power house end.
The coal ministry has amended Mineral Concession Rules, 1960 with a view to encourage domestic coal production enhancement from captive mines by allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 per cent of the total coal or lignite produced in a financial year, after meeting the requirement of the end-use plant linked with the mine.
Earlier this year, the Mines and Minerals (Development &Regulation) Act had been amended to this effect. This is applicable for both the private and public sector captive mines.
With this amendment, the government has paved the way for releasing of additional coal in the market by greater utilisation of mining capacities of captive coal and lignite blocks, which were being only partly utilised owing to limited production of coal for meeting their captive needs.
Coal companies supply coal to its linked central/state gencos under long term bi-lateral fuel supply agreements (FSAs) and as per terms and conditions of these FSAs.
Source: PTI
