CIL assures to increase dispatch to power sector to 1.6 MT per day to cover coal stock situation

New Delhi: An inter-Ministerial sub-Group led by the Ministry of Coal has been monitoring the coal stock situation twice a week. In order to manage the coal stock and ensure equitable distribution of Coal, the Ministry of Power constituted a Core Management Team (CMT) on 27.08.2021 comprising of representatives from MOP, CEA, POSOCO, Railways, and Coal India Limited (CIL) to ensure daily monitoring. The CMT is closely monitoring and managing the coal stocks on daily basis and ensuring follow-up actions with CIL, Railways to improve the coal supply to power plants.

CMT in its meeting held on 9th Oct 2021 reviewed the status. It was noted that on 7th Oct 2021 total dispatch of coal by Coal India limited (CIL) touch 1.501 MT thereby reducing the gap between consumption and actual supply. Ministry of Coal and CIL have assured that they are making best efforts to increase dispatch to the power sector to 1.6 MT per day in the next three days and thereafter try to touch 1.7 MT per day. It is likely to help in a gradual build-up of coal stocks at the power plant in near future. The coal supply, as well as the consequent power situation, is likely to improve.

There are four reasons for the depletion of coal stocks at the power plant end unprecedented increase in demand of electricity due to the revival of the economy; heavy rains in coal mine areas during September, 2021 thereby adversely affecting the coal production as well as despatch of coal from mines; increase in prices of imported coal to unprecedent high level leading to substantial reduction in power generation from imported coal based power plants leading to more dependence on domestic coal; non-building of adequate coal stocks before the onset of Monsoon. There are also legacy issues of heavy dues of coal companies from certain states viz., Maharashtra, Rajasthan, Tamil Nadu, UP, Rajasthan and Madhya Pradesh.