The Hindu Business Line : Thermal plants' coal shortage worsening

MOST coal-based power plants in the country are forced to default on the basic norm of maintaining a 30-day reserve of coal stocks. And for no fault of theirs.

Smarting under a severe coal shortage, many of them have stocks only to last for seven days, but some like NTPC Sinhadri and Talcher have stocks for less than four days.

"Most thermal power projects in India do not have reserves. Almost all are living a hand-to-mouth existence relying on daily supplies and very little in-hand reserves," said Mr P.K. Kukde, Director (Technical), Tata Power Company Ltd, which runs a 1,350-MW thermal plant in Trombay.

According to the Central Electricity Authority, projects in the eastern parts of the country are the worst hit. Of the 22 generating units across Bihar, West Bengal and Orissa, nearly eight have been on the authority's `critical' list, with less than a week's reserves, while four are `super-critical', with reserves that won't last four days. Many of these are pithead plants or plants that are located close to coalmines.

These include NTPC's 3,000-MW Talcher and the 1,600-MW Farakka projects. And it is not just the National Thermal Power Corporation that is facing supply shortages.

"There has been an overall shortage in the country for the last couple of years. The coming years could be much more challenging," said Mr Shankarlingam, Director (Projects), NTPC.

Senior Government officials informally agreed that the country is facing a shortage of 30-40 million tonnes of coal. Officially, however, the Government quotes a much lower figure.

Over the last five years, coal production has not kept pace with the increasing `plant load factors' or power generation capacity of power projects across India. Government-owned Coal India Ltd has been unable to increase production proportionately.

Also, power producers claim Indian coal is high in tonnage or weight but poor in calorific value, implying that there is more wastage per tonne of coal consumed. As a result, companies such as NTPC are planning gas-fired capacities.

"We are decidedly adding more gas-fired capacity in the near future. But for now, we have little option than import more coal," said Mr Shankarlingam.

Although the Union Government and Coal India have agreed to allow private sector participation in coal mining, industry players say it takes more than five years for a coal mine to be released.

So far, in spite of lower reserves and occasional supply hitches, no power plant has faced a shutdown.

Though the National Thermal Power Corporation insists the situation is currently under control, the worry lines are deepening.

"If this is the pace of supplies, how can the country meet its capacity addition targets? Coal is affordable but not available, and gas is increasingly available to power producers, but at relatively steep prices," said Mr Urmik Chhaya, research analyst, Anand Rathi Securities.

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