KOLKATA (miningweekly.com) – India’s Coal Ministry has directed Coal India Limited (CIL) to ramp up production to two-million tons a day, up from an average of 1.6-million tons a day at present, and bring down its pithead stocks to nil from 30-million tons currently being carried.
More importantly, to mitigate the shortage of coal that power stations across the country feel, CIL has been directed to ensure a daily dispatch of two-million tons, or the same as daily production and eliminate any stock build-up at its mines.
The directive followed a review of coal demand and supply to various user sectors by the Coal Ministry.
“Stocks of coal at the pithead were about 69-million tons at the start of the current fiscal. This has come down to 30-million tons and I have asked Coal India that old stocks should be made zero. First in, first out should be the goal. Whatever stocks will remain will be fresh stocks,” Coal Secretary Susheel Kumar said.
“In order to liquidate old stock, coal has to be dispatched vigorously and I have a feeling that the 30-million tons currently held by CIL will be liquidated by March 31, 2018,” he added.
Earlier, as reported by Mining Weekly Online, the Coal Secretary had blamed thermal power plants creating a shortage scenario by not following standard procedures laid down by policy-making body, the Central Electricity Authority (CEA), on coal stocking norms.
Kumar claimed that thermal power plants were not making coal bookings and stocking up as per CEA norms to cut down on carrying costs of coal and that the ‘just-in-time’ stocking followed by the power plants had led to low fuel stocks at the plants, which was not effective in the case of high volume raw materials.
According to CEA data, the number of thermal power plants with only seven days equivalent consumption, categorised as “critical” were four, while 23 plants had coal stocks of less than four days, or categorised as “super critical”.
Moreover, these did not include plants which had outstanding dues on coal supplies already made and therefore they were able to lift fresh coal stocks.
Thermal coal power stations account for 65% of electricity generation capacity.