No coal shortage at power stations: Minister

PTI New Delhi | Updated on December 22, 2011 Published on December 22, 2011

Mr Sriprakash Jaiswal

Amid reports that inadequate coal supply has hit the generation capacity of power plants, the government on Thursday said there was no crisis of the fossil fuel at power stations, assuring that no station would be shut down due to coal shortage.

“There is no shortage of coal for power firms. I can guarantee that no power station will be shut due to coal shortage. There is no shortage at existing power stations,” Coal Minister Mr Sriprakash Jaiswal told reporters outside Parliament.

In October, inadequate supply of coal to the power stations had resulted in acute power cuts in major parts of the country.

The government swung into action and asked coal companies, including major producer Coal India, to step up supply to stations facing shortage of the dry fuel to ensure that the power generation remains uninterrupted.

Dispatch of coal to firms had received a setback in August and September due to heavy rains in all the coalfields, adversely affecting production and transportation of coal from mines to railway sidings.

Mr Jaiswal had said the government would make efforts to provide more coal to state-run NTPC, many of whose plants are running below capacity levels due to coal shortage.

The Coal Ministry had also announced that it would allocate additional quantity of coal to power sector from the e-auction quota to ease the “crisis“.

E-auction is a process whereby coal is sold at spot market price. Around 10 per cent of the total coal produced by the state-run Coal India is sold through e-auction.

Meanwhile, Coal India Chairman Mr N C Jha had also announced to offer 4 MT of coal meant for e-auction in October to power companies.

Published on December 22, 2011

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