NEW DELHI: The power demand in the city today breached all previous records, touching a new high of 5,178 mega watt as loadshedding continued to haunt people in the blistering heat due to mismatch in demand and supply.
The previous highest power demand in the city was recorded only on Wednesday when it rose to 5,155 MW.
“The maximum power demand in the city touched 5,178 MW at 4.07 PM which is a new record of power consumption inDelhi,” a power department official said.
Amid the heatwave condition which has been prevailing for almost a week, areas across East, West, South andNorth Delhicontinued to reel under power cuts ranging from one to four hours due to rising power demand.
Supply of water was also disrupted as power cuts affected functioning of various water treatment plants across the city.
An official power distribution company BSES Rajdhani Power Ltd said power demand in the areas served by the company rose to all-time high of 2,062 mega watt.
“There was no power in our area for three hours,” said Manish Behl, a resident of Burari area inWest Delhi.
The power demand in the city has been increasing at a rate of around eight per cent in the last few years and as per projection of the government, it will reach 5,500 MW this summer.
As per official figure, the power demand in the city in the year 1905 was just two mega watt which had increased to 27 mega watt in 1947. The peak demand had touched 1,536 MW in 1992, while in 1997 it increased to 2,303 MW and further to 2,879 MW in 2001.
In 2002, the power demand had gone up to 3,097 MW while in 2007, it touched 4,030 MW. While the demand went up to 4,408 MW in 2009, the demand touched 4,720 MW in 2010.
Last year, the demand had gone up to 5,028 mega watt. which was the all-time high demand till it was breached when the demand touched 5,032 mega watt on May 25.
FIIs FIRM UP HOLDINGS IN POWER COMPANIES MARGINALLY
NEW DELHI: Somewhat bucking the trend of various negative reports emanating from power sector due to myriad reasons, the Foreign Institutional Investors (FIIs) have shown confidence in domestic power companies by marginally increasing their exposure in them during the December 2011 to March 31, 2012 period.
Power sector being the most crucial factor for the economy since the past few years has been facing multidimensional challenges, ranging from land acquisition issues to fuel supply constraints to environmental hurdles to dismal financial health of the distribution utilities. The issues have been myriad, almost handicapping the sector. To add fuel to fire, the recent rise in rupee and the euro zone crisis have kept the faith in the economy in general and the power sector in particular to subdued levels.
In these difficult times, the FIIs however, have kept their faith in the sector and stuck with it, which is advertently palpable from increasing their stake, although marginally in the already plagued sector.
Most of the power sector companies have seen an influx of FIIs funding into them during the period. FIIs holding in the public sector companies such as National Thermal Power Corporation (NTPC) and NHPC have gone up marginally but gradually. The foreign holding in NTPC increased from 3.73 per cent in December, 2011 to 4.02 per cent in March, 2012. The NHPC also witnessed a hike in foreign holding from 1.33 per cent to 1.38 per cent during the period.
However, Power Grid is an exception where the FIIs stake during the said period has come down from 13.07 per cent to 12.93 per cent.
At the same time, FIIs have also diverted their funds in power equipment maker BHEL and power project financer PFC, where, they increased their exposure in BHEL by 1.25 per cent from 12.23 per cent in December, 2011 to 13.48 per cent in March, 2012, PFC too attracted better than all funding by 2.1 per cent from 7.75 per cent in December, 2011 to 9.85 per cent in March, 2012.
Some Industry experts believe that the sector would continue to grow as demand picks up and issues such as fuel crunch would gradually be addressed and that the growth story in the sector is intact. They also confirmed that the FIIs would continue to invest in the sector in the current fiscal also.
However, another section of experts have another side to the story, According to them, India saw significant inflow of funds from FIIs in January and February that pushed Nifty by around 22 per cent on the anticipation that the Government will finally address the coal issues in the Budget 2012.
“The FIIs increased their holdings in power sector companies in last few months in the anticipation that the fuel shortage problem would be sorted out in the next six months to one year period and new capacities would come up,” said CNI Research, CMD, Kishor P Ostwal. He also said that since FIIs do not see any clarity on the Government policy of addressing the problems in the sector, it would be interesting to see their shareholding pattern in the month of June, “would it increase or decrease”.
Explaining a possible drop out in the FII investment in Power Grid Corporation, Ostwal expressed concern over the business model of the company. “As far Power Grid is concerned, there is no clarity on its business model. There is no clarity as to how the Government will dilute its holding in the company, hence the drop in FII holding,” he said.
SMC Global Securities Limited Strategist & Head of Research, Jagannadham Thunuguntla however, said that the increase is only marginal and should not indicate any upward trend. “The power sector companies are getting powerless day by day, so this increase should only be seen as marginal as it does not indicate any upward trend.”
At the beginning of this calendar year, several foreign investors had invested in India anticipating big ticket reforms in the pipeline in the Budget 2012, and at the same time, the PMO had also sprung into action after the meeting the power companies to take adequate steps to address challenges faced by the power developers.
TN WITHDRAWS COMPULSORY POWER HOLIDAY FOR INDUSTRIES
CHENNAI: The Tamil Nadu government has decided to reduce the compulsory power cut by one hour for households, besides withdrawing its compulsory power holidays for high-tension (HT) and low-tension (LT) industrial units.
The decision was taken at a review meeting on the current power situation in Tamil Nadu.
The meeting was chaired by Tamil Nadu chief minister J Jayalalithaa in Chennai today.
In a press release, the chief minister said that in the last few weeks power generation through wind had increased, which led to the improvement in the power situation in the state. Besides, the Mettur power plant has started its production and is now running in its full capacity of 840 mega watt.
There was a fire accident at the Mettur plant on May 10. Following the orders from the chief minister, work to restore the power plant was taken on war-footing.
Based on the above said developments, from Saturday, it was decided to exempt HT industrial units and power holidays for LT industrial units from weekly power holiday and compulsory power holiday on Sunday.
For households in Chennai, the power cut will be reduced to one hour from the current two hours, while it will be reduced to three hours from the earlier four hours in other parts of the state.
POWER GRID CORPORATION BOARD APPROVES INVESTMENTS WORTH RS 3,422 CRORE
NEW DELHI: State-run Power Grid Corporation ofIndiatoday said its board has approved investment proposals worth Rs 3,422.40 crore.
The proposals were approved at meeting of the company’s board on May 29, it said in a regulatory filing.
The company would pump in Rs 1,909.24 crore for certain projects in Srikakularm and the work is anticipated to be over within 36 months from the date of investment approval.
Power Grid would invest Rs 1,263.26 crore for system strengthening of “XVIII in South Regional Grid” and the work is expected to be completed in 29 months from the date of investment nod.
The power transmission major would put in Rs 174.16 crore for fibre optic communication system for central sector sub stations and generating stations in Southern region. The project is expected to be commissioned within 30 months from the investment approval date.
Further, the firm would invest Rs 75.74 crore related to work at its sub station for Raichur -Sholapurtransmission. The same is anticipated to be completed within 21 months from date of investment approval.
FOUNDATION STONE FOR NTPC’S KUDGI PLANT TO BE LAID
NEW DELHI: The foundation stone for the first stage of state-run NTPC’s 4,000 MW Kudgi super thermal power project in Karnataka will be laid tomorrow.
Stage I would have three units, each having a capacity of 800 MW.
A company official said the foundation stone would be laid by Union Power Minister Sushilkumar Shinde on Saturday. Kudgi project is located in the Bijapur district.
The Kudgi plant would be the first ultra mega power project to be set up by NTPC in Karnataka, the official said.
Power generated from Jig project would be mainly supplied to Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Stage I of the project is estimated to cost more than Rs 15,160 crore.
Stage II would have two units of 800 MW capacity each.
The project would be utilising high efficiency technologies such as super critical boilers.
Union Minister of Corporate Affairs M Veerappa Moily, Union Minster of State for Power K C Venugopal and Karnataka Chief Minister D V Sadanand Gowda, among others, are expected to be present at the foundation stone laying function, the official noted.
According to the official, NTPC would tomorrow also start main plant civil works of the 1,320 MW Solapur super thermal power project inMaharashtra.
Presently, NTPC has an installed generation capacity of 38,014 MW, that includes 16 coal-fired plants. The power producer expects to have 1,28,000 MW capacity by 2032.
KUDAGI PLANT: FARMERS’ SACRIFICE REMEMBERED
BIJAPUR: Minister for major and medium industries Murugesh Nirani said the Kudagi super thermal power plant (KSTPP) would be a boon not only to the people of North Karnataka but for the country as it would open the floodgates of opportunities in various forms.
Speaking to TOI on the eve of the foundation laying ceremony for the Kudagi super thermal plant here he said the sacrifice of the farmers who have given up their lands for the project was highly appreciable and the government would remember it.
He said the KSTPP would be an environment-friendly plant and people need not be worried over rumours of damage to the environment. The project when commissioned will boost various economic activities in Bijapur, Bagalkot and other districts and generate employment.
Nirani said many national and multinational companies had expressed their desire to invest in projects to be set up inNorth Karnatakaduring the Global Investors Meet and providing power generation plant at Kudagi was fulfillment of the commitment on the part of the government. “This is an alternative to the Centre’s ultra mega power project and will benefit the region to a great extent” Nirani said.
An MoU was signed by the government of Karnataka, power company of Karnataka Ltd, and NTPC in January 2009, for setting up the project with an ultimate capacity of 4000 MW (stage I three units of 800 MW each and stage II 2 units of 800 MW each).
The Union ministry of environment and forests accorded environmental clearance for the first stage of project (3×800 MW) on January 25, 2012. The NTPC placed the main equipment orders worth over Rs 6,087 crore for three units for this project on Feb 17. The total estimated investment of the project (Stage I 3×800 MW) is Rs 15,166 crore.
The power to be generated from this project will be mainly allotted to all the southern states. According to NTPC sources, the first stage work will be completed within 52 months. Nearly 3,000 acres of land is required for the project, out of which already 1,903 acres of land, essential for the main plant, has been handed over to the KIDB.
DISCOMS TO CALL FOR BIDS FOR SHORT-TERM POWER NEEDS
NEW DELHI: In order to offer relief to cash-starved State power distribution companies, the Power Ministry has put in place new guidelines to procure electricity for shorter duration — up to a year.
The new guidelines are targeted to reduce the power purchase bills of distribution utilities through a process of planned procurement. It would also benefit consumers because State distribution utilities prefer cutting down electricity supply to buying expensive power during peak demand cycles.
Based on the guidelines, the State utilities can call for bids on a round-the-clock basis for different time slots, depending on the requirement. The bidders would have to quote a single tariff at the delivery point that would include capacity charge, energy charge and any other levies.
“These new norms would help in rationalising the power market. Private companies are already using the open tendering process under CERC guidelines to procure power. The new notification would be more useful to State distribution utilities,” said Mr Gopal Saxena, Chief Executive Officer of BSES Rajdhani Power Ltd that supplies electricity inNew Delhi.
In case the State distribution company cannot pick up all the contracted units of electricity, by more than 15 per cent, it will have to pay compensation at 20 per cent of tariff per kWh for the quantum of shortfall. Similarly, the seller will also have to pay for any shortfall in supplies from its end.
The new guidelines also give the liberty to call for combined bids by more than one distribution utility. In such cases, an authorised representative, who may be acting on behalf of the buyers, would conduct the bidding process.
The bidder may also be asked to deposit earnest money of Rs 30,000 per megawatt every month in the form of bank guarantee. The bidder may raise bills weekly or at the end of contract cycle.
However, buying electricity for less than 15 days would not come under the purview of the new guideline. Power procured under the banking mechanism and from power exchanges will also be excluded from the scope of these guidelines.
FOUR PSUs POOL IN RS 45,000 CRORE FOR BUILDING NUCLEAR PROJECTS
CHENNAI: Four public sector majors will pool in Rs 45,000 crore to fund the equity portion of the several planned nuclear power projects in the country, Mr S. K. Jain, Chairman and Managing Director, Nuclear Power Corporation of India Ltd (NPCIL), has said. NPCIL has alongside lined up €7 billion of credit from foreign banks.
While NPCIL itself has Rs 15,000 crore, three other PSUs — NTPC, Nalco and IOC — have agreed to bring in Rs 10,000 crore each, Mr Jain told Business Line in Chennai on Tuesday.
NPCIL has entered into three separate joint ventures with the three companies. But for them to start functioning, it requires an amendment to the Atomic Energy Act. The joint ventures are “waiting for the amendment”, Mr Jain said.
Indiahas a very large nuclear programme. Currently, four units of 700 MW each, of the Pressurised Heavy Water Reactor (PHWR) technology, are coming up — these are units 7 and 8 of Rajasthan Atomic Power Station (RAPS) and units 3 & 4 of Kakrapara, Gujarat.
Apart from these four, NPCIL will begin work on 8 more 700 MW PHWR plants in the 12 {+t} {+h} Plan Period (2012-17). These will come up atGorakhpur, Haryana; Chutka, Madhya Pradesh; Bhazwada, Rajasthan; and Kaiga, Karnataka.
Of the 12 units — those under construction and those planned — at least four will be commissioned during the 12 {+t} {+h} Plan, Mr Jain said.
In addition to these, eight ‘light water reactors’ of 1,000 MW each will be built with the help of foreign companies. The Russians will build two more at Kudankulam. The other six will be put up by GE, Westinghouse and Areva, Mr Jain said.
Further, two more fast breeder reactors have been planned.
In all, around Rs 2.3 lakh crore will be spent on the nuclear programme that is being rolled out.
NPCIL has begun the process of raising debt. Four banks have committed to underwrite debt of €7 billion, Mr Jain said.
SOLAR EQUIPMENT MAKERS SEEK ANTI-DUMPING DUTY ON IMPORTS FROM CHINA, MALAYSIA, TAIWAN
NEW DELHI: Indian manufacturers of solar equipment are seeking anti-dumping duty on imports fromChina,Malaysia,Taiwanand theUSon the grounds that local industry is bleeding because of “ridiculously low” price of foreign equipment.
The industry wants anti-dumping duty on imports of solar photovoltaic (PV) cells and modules, and has filed an application to the directorate general of anti-dumping and allied duties (DGAD).
“Globally, there’s a huge capacity of solar PV cells and modules. The selling price is artificial and not at all related to the cost of the product currently,” saidS Venkatramani, general secretary, Indian Solar Manufacturer’s Association. The application was filed in January and DGAD is looking into the matter.
He said Indian industry has a very low capacity and dumping of foreign products is making their condition even worse.
“The industry is not only struggling but its existence is challenged today. Lack of level-playing field for manufacturers inIndiavis-a-vis competition from certain non-market economies, where we are virtually competing with the country and not companies,” said Vivek Chaturvedi, CMO, Moser Baer.
The association believes that the recent move by theUSto impose anti-dumping duty on Chinese solar equipment proves that there’s a strong case.
TheUSrecently imposed 31% anti-dumping duty on Chinese solar imports, going as high as 250% for some companies. US manufacturers had alleged that Chinese products are eating their local market.
While the industries bat for a level playing field, government is trying to help local industries as much as they can.
“They (local manufacturers) are asking for concessions on funds but the cost and availability of funding is a major issue. We might come up with a separate scheme to fund local manufacturers,” said Tarun Kapoor, joint secretary, ministry of new and renewable energy.
InIndia, solar cell manufacturers use only CSi technology but it’s the imported thin-film that has gained popularity among project developers, as it’s cheap especially fromChinaandTaiwan. The current ratio of CSi-based projects to those based on thin films is 45:55.
COAL MINISTRY NOT IN FAVOUR OF POLICY FOR GRANT OF ALTERNATE MINES
NEW DELHI: Amid controversies shrouding coal blocks allocation, the Coal Ministry has said it is not in favour of framing any policy for allotment of alternate mines at present as it may result in huge demand by firms at a time when there is paucity of blocks.
“Keeping in view that there are no coal blocks available for allotment now and any policy for allotting alternate coal blocks may result in huge demand for such allocation, it is felt that such policy need not be framed at present,” Coal Ministry has said in an official note.
Not recommending “allocation of coal block outside the rules framed for the purpose of allocation of coal blocks,” the Ministry has said it has identified 54 blocks for grant through competitive bidding and government dispensation route.
“Since the MMDR (Amendment) Act, 2010 has come into force and the Rules for Auction through competitive bidding have already been notified, the allocation of coal blocks can be made only under the provisions of the said Act and the rules made there under,” it added.
The Ministry has also contended that companies like SAIL, RINL, NTPC had earlier surrendered coal blocks alloted to them citing various reasons including difficult geo-mining conditions and requested alternate coal blocks.
But “all along, this Ministry has taken a consistent view that there are no policy/guidelines in this regard,” the note said.
The companies were advised to apply as and when the coal blocks are circulated/advertised for allocation, it said adding even Supreme Court in 2G case had categorically laid down that “in allocation of natural resources, a transparent system is to be followed and the allocation is to be in the interest of public good”.
Meanwhile amid charges of irregularities in block allocation between 1993 and 2009, the Central Vigilance Commission has referred the case to CBI for probing alleged irregularities in allocation process adopted by the Centre.
The government has attracted criticism after a media report quoted a Comptroller and Auditor General report to state that undue benefits of over Rs 1.8 lakh crore accrued to private companies in coal block allocations.
The government, however, has said it has not received any such CAG report.
COAL MINERS SET TO MATCH ROYALTY AMOUNT FOR LOCALS
NEW DELHI: The government is set to make it mandatory for coal mining companies to earmark an amount equivalent to the royalty they pay to the states for the well-being of people affected by their projects. Apart from public sector Coal India (CIL), the largest coal miner in the country, steel, power and cement companies with captive coal mines will also come under the rule. The move could further erode the profitability of these companies.
According to a Cabinet decision taken in October last year, coal mining companies were supposed to share 26% of their profits for the support of project-affected locals, instead of an amount equivalent to their total royalty payout as is the case with companies mining other minerals. It has now been decided to ask coal miners also to earmark an amount equal to the royalty paid for the rehabilitation of locals, because mining-related profits were difficult to be separated from other activities in case of companies with captive mines.
The proposal is also a part of the new Mines and Minerals (Development and Regulation) Bill, 2011, which was introduced in Parliament and is currently being vetted by a standing committee. For non-coal minerals, companies are required to keep aside an amount equivalent to the royalty they pay to the government for the well-being of the locals.
“The coal ministry has requested the standing committee for computing the amount payable to project-affected persons through District Mineral Development Fund on royalty basis,” said a mines ministry official, requesting anonymity.
“The committee is in favour of the change and once their report comes, we would make the necessary changes in the draft Bill,” the official added.
Once implemented, the changes would adversely impact CIL, which paid a total royalty of close to Rs 5,300 crore to states in 2011-12. The changed provisions would mean that an amount equivalent to this would have to be set aside annually by CIL for the benefit of project-affected people. This is much more than the Rs 3,845 crore that CIL would have paid (on a profit of Rs 14,788 in 2011-12) under the 26% profit-sharing formula.
“The royalty-based formula for calculating benefits accruing to project-affected persons is more transparent. Moreover, profit calculation would have become difficult in case of companies with captive coal mines as their mining operations are not standalone entities but part of their core business in steel, power and cement sectors,” said a coal ministry official.
Interestingly, the coal ministry had earlier supported a 26% profit-sharing by coal companies when provisions of the MMDR Bill were being discussed by a group of ministers (GoM). But it changed its stand after several representations from companies with captive coal mines. These companies expressed difficulties in converting their coal mining operations as separate business entities to calculate profit before 26% of it could be calculated for sharing with the project-affected people.
The Bill also has a provision for Mineral Development Fund that would be created in every district, in which profit and royalty shared by miners will be deposited and spent on the locals and for the area’s development.
Once the Bill becomes law, all mining companies will feel the pinch – CIL, SAIL, Tata Steel, JSW, Sesa Goa, NMDC, Essar Steel, Hindustan Zinc, Hindustan Copper, Essel mining to name a few.
GOVERNMENT UNWILLING TO TALK ON COAL PRICING: TCI
NEW DELHI: UK-based hedge fund, The Children’s Investment Fund (TCI), has criticised the Indian government for refusing to engage in a dialogue with the investor on disputes regarding coal pricing by CoalIndia, where TCI holds about 1%.
“There seemed to be a pre-determined agenda to deny all allegations and repeatedly state that there was no basis for the dispute…unless the government can offer us a more constructive form of engagement, this matter is going to end up in arbitration,” said Mark Derbyshire, a partner at TCI.
However, TCI said it was pleased to hear the government’s view that pricing of coal should be determined by CIL board, free from government interference and that the government supports coal washing by CIL. In March, TCI had initiated legal action against the Indian government for allegedly violating bilateral treaties ofCyprusandUKby forcing CIL to enter into agreements with power firms and sell coal at discounted price.
“Our losses, deriving from the government’s interference in CIL’s pricing of coal alone, have been very substantial,” said Derbyshire, who was one of the executives who met officials from the government on Tuesday.
Apart from representatives from TCI, the meeting was also attended by former coal secretary Alok Perti (who retired on May 31), coal joint secretary Ajay Bhalla and coal director Sharad Ghodke and Foreign Investment Promotion Board Director Vijay Singh Chauhan, according to a TCI statement.
“Every attempt by us to engage in a substantive discussion of the issues was met with shaking of heads, interruption and counter-accusation,” Derbyshire said.
CBI INQUIRY INTO COAL ALLOCATIONS
NEW DELHI: The Central Bureau of Investigation (CBI) on Friday initiated an investigation into the alleged irregularities in allocation to and utilization of coal mines by private companies in 2006-2009.
The investigation is based on the advice of the Central Vigilance Commission (CVC), the apex anti-corruption watchdog.
The CBI action is politically a setback for the ruling Congress-led United Progressive Alliance as the allegations relate to the period when Prime Minister Manmohan Singh held additional charge of the coal ministry.
“We have registered a preliminary enquiry against unknown people. And it is likely to be completed within 12 weeks,” said a high-ranking official who did not want to be named. “We will be looking for criminal misconduct, if any, by companies allocated coal blocks and also any wrongdoings in the allocation process.”
To be sure, the preliminary investigation by CBI does not indicate any culpability and marks the first stage of any inquiry.
CVC had received the complaint of Bharatiya Janata Party (BJP) leaders Prakash Javadekar and Hansraj Ahir on 10 March. It alleged wrongdoing in the allocation and utilization of coal by private firms. The BJP leaders alleged that the government had adopted a first-come-first-served policy to benefit some private companies.
However, the CVC complaint that was forwarded to CBI—the premier investigation body that’s under the administrative control of the Prime Minister’s Office (PMO)—ostensibly did not name any individual or company as a suspect in the case.
In 2004-2009, the coal ministry allocated 155 coal blocks on a nomination basis to various firms for captive use. The allegations are that these blocks were allocated at undervalued rates.
The matter was raised after The Times of India newspaper reported a draft report of the Comptroller and Auditor General of India (CAG) on the allocation of coal blocks. According to the report, the draft finding said the national exchequer suffered a notional loss of Rs.10.6 trillion, out of which the notional loss due to allocation to private companies was pegged at Rs.1.8 trillion. However, CAG issued a press statement and disowned the media report, saying the report was yet to be finalized.
“We are happy that CVC has taken cognizance of our complaint. CVC has written to us saying your complaints have been duly examined in the commission, having regard to the issues raised therein and the same has been forwarded to CBI for a preliminary inquiry,” Javadekar, who was accompanied by Ahir, told reporters.
BJP spokeswoman Nirmala Sitharaman said, “We have raised it in Parliament and there are enough indications that something is going on in coal allocation. Hansraj Ahir has been independently collecting a lot of evidence on the coal allocation and approached CVC, who has seen merit in the case and asked CBI to investigate. Now, during the period of irregularity, the minister holding the charge for coal was Prime Minister and hence we said there is a need for a special investigation team and we stick to our demand.”
Coal minister Sriprakash Jaiswal denied there was any scam, in comments made to reporters inBhubaneswar. There is no CAG report with me… There is no scam in allocation of coal blocks,” he said, adding that blocks were allocated (to the companies both in the public and private sector) to provide subsidized power to consumers over the last 15 years.
Jaiswal also denied there was any windfall gain for the firms that got the mines, as mentioned in the draft CAG report.
The alleged findings of the CAG report were used by anti-corruption activist Anna Hazare and his team to level allegations of corruption against Prime Minister Singh.
“CBI is under the government. Here the Prime Minister is accused. How will CBI investigate the Prime Minister? It is laughable; it is a pretence. We know the outcome of this probe. It will say that the Prime Minister has not done anything wrong. It will give clean chit to Singh,” Hazare’s colleague Arvind Kejriwal told reporters inGhaziabad. He said a panel of three retired judges should investigate the matter.
The PMO could not be reached immediately for comment.
COAL SHORTAGE SITUATION IN THERMAL PLANTS ‘WORSENS’
CHENNAI: Data from the Central Electricity Authority show that the coal shortage situation in thermal power plants has worsened during the last one year. The total capacity of the plants with coal stock of less than four days – defined by CEA as ‘super critically’ short of coal – has increased to 22,220 MW as on May 29, compared with 15,435 MW as on June 1, 2011.
Likewise, the capacity of plants with less than seven days stock of coal also increased to 30,747 MW, against 25,777 MW a year ago. The CEA data also reveals a disturbing fact – the situation sharply deteriorated in the last one month too. On May 1, there were 13 plants, of a total capacity of 12,250 MW, that were ‘super critically’ short of coal. This means that 10,000 MW of plants became very critically short of coal in one month.
Two of these plants – Anpara C (1,200 MW) in Uttar Pradesh and Kahalgaon (2,340 MW) inBihar– have no coal at all. Incidentally, both the plants are ‘pithead’ plants, that is, located at a coal mine.
In the coal-rich State ofOdisha, the 3,000-MW Talcher STPS plant has coal for less than four days. In the other coal-rich State ofWest Bengal, six plants of a total capacity of 6,050 MW have less than four days worth of coal.
Indiahad lost 25,085 MW of thermal power plant capacity to repairs (“forced maintenance”) as on May 29, the CEA data shows. Although, the capacity under ‘forced maintenance’ for over 15 days is given as 14,265 MW, the total capacity of plants under repairs as on May 1 was 25,101 MW — implying that as some plants became operational, some others went into ‘forced maintenance’.
Including ‘planned maintenance’ and ‘other reasons’, the total shut down capacity of thermal power plants in the country stood at 32,973 MW as on May 29, compared with 35,585 MW at the beginning of the month.
COAL MINISTER GIVES CLEAN CHIT TO MCL
KOLKATA/BHUBANESWAR: Coal minister Sriprakash Jaiswal defended Mahanadi Coalfields Ltd (MCL), a subsidiary of Central maharatna PSU- Coal India Ltd, over non-payment of Rs 1306 crore penalty imposed by the Odisha government on grounds of alleged illegal coal mining.
” So far as my knowledge is concerned, MCL did not commit any mistake. It had applied for enhancing production at a certain mine and then kept raising the production. They did not raise coal from a new mine,” Jaiswal said at a press meet after visiting some mines of MCL in Talcher district.
A couple of months back, the state government had asked MCL to pay a fine of Rs 1,306 crore for mining coal without environment clearance. It said that the MCL, had resorted to illegal extraction of coal in the absence of statutory clearances and therefore, is liable of paying the penalty amount to the state government. The state government order followed a directive sent last year by Deputy Director of Mines (DDM) of Sambalpur mining circle to MCL, in which he had asked the coal producer to deposit Rs 862.58 crore. Later, the penalty amount was revised according to the recommendation by Comptroller and Auditor General (CAG) ofIndia.
MCL has been denying payment of dues saying that the the fine has been imposed as per the provisions mentioned in the Mines and Minerals (Development & Regulation) Act-1957, which is not applicable to coal miners.
Talking about coal scams in the state, the Union minister said he was aware of the irregularities in coal allocation inside the state and said the state government can order an inquiry into this. He also justified the coal block allocations between 2006 and 2009, that has sparked controversy recently, landing the Centre in a tight spot.
” All the governments have followed similar procedures of allocating coal block in last 15 years and so did the UPA (United Progressive Alliance) government”, he said.
The CAG has recently pointed out that the national exchequer could have added around Rs 100,000 crore in revenue, had the coal been supplied to power producers through e-auction process as done by CIL.
Jaiswal today said CIL cannot alone manage so much coal trading in the country and for this reason, coal blocks were allotted to private companies to develop the and use the mined coal in producing power.
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