The Hindu Business Line : Efforts on for additional coal supplies from Mahanadi fields

Hyderabad, July 30 Faced with huge demand and supply gap for overall energy requirement, Andhra Pradesh has made arrangements for additional coal supplies from Mahanadi coal fields and is exploring option to import coal from either Indonesia or Australian mines.

While there is no power generation from hydel resources, a paltry generation from gas fired stations, even the coal-based plants are now faced with shortage of supplies. This has been further accentuated due to rains which have soiled the coal stocks resulting in lower energy output from them.

The State is now close to evacuating coal from Mahanadi coal fields and is likely to shift it to Kakinada port via Paradeep and then move it for use in Vijayawada thermal station, according to Mr Mohd Ali Shabbir, State Energy Minister.

Coal Imports

Addressing a press conference here on Wednesday, he said the Government is also in the process of finalising plans for import of about one million tonnes of coal from either Indonesia or Australia by floating tenders.

Even though imported coal costs about 70 per cent higher than domestic coal, it has much higher calorific value.

Given the demand supply mismatch likely to go up to about 45 million units by August, the State has no option but to consider this, he said.

The peak demand which was 190 million units (mu) a day last year is likely to go up to about 200 mu by next month. The current peak demand after imposing power cuts is estimated at about 171 mu and the State is able to supply about 155 mu.

Supply-Demand mismatch

As against total investment of Rs 1,991 crore during 2007-08 for additional power purchase from private units and Rs 551 crore from Central stations, the State has thus far already deployed about Rs 1,589 crore over the last four months, Mr Shabbir said.

In spite of these challenges, the State assured that the Government would ensure that farmers get seven hours of supply, in two or three tranches in a day, by imposing necessary cuts on domestic and other segment users.

SEASONAL CONDITIONS

Later, addressing a press conference, the State Agriculture Minister, Mr N. Raghuveera Reddy, expressed satisfaction over the ongoing sowing operation and stated that they were confident that by August 15 most of the sowing operations would be completed.

After a review meeting with the Chief Minister, Dr Y.S. Rajasekhara Reddy today, the Agriculture Minister said the State so far had a deficit rainfall of about 19 per cent.

However, based on the data provided by the Indian Metrological Department, the State would get more rains during latter part of the season.

He said necessary arrangements have been made to provide fertilisers to the farm sector.

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