1. Private power body blames railways for coal shortage

Private power body blames railways for coal shortage

The Association of Power Producers (APP), which represents private power developers, has written to railway minister Suresh Prabhu...

By: | New Delhi | Published: January 23, 2015 1:14 AM
Beyond the coalblock controversy, the new government, headed by Prime Minister Narendra Modi, has announced this year an ambitious target of doubling the coal behemoth CIL's output from the present 462 million tonnes to about one billion tonnes by 2019.

The railways has defended itself saying that it is not consulted by CIL before signing fuel supply agreements.

The Association of Power Producers (APP), which represents private power developers, has written to railway minister Suresh Prabhu alleging that there is a lack of coordination between railways and Coal India (CIL) and its subsidiaries, leading to coal shortage. APP said that it was leading to ‘meaningless’ fuel supply agreements as the coal miner does not factor in railways’ inability to transport contracted amount to power plants.

The APP says that the number of rakes allotted by railways to CIL is far lower than needed to transport the contracted quantity to the power plants. The railways has defended itself saying that it is not consulted by CIL before signing fuel supply agreements. “Considering that the railways is the only enabler of the coal transportation under the FSAs, the fact that the railways is expressing its inability to transport coal as per offers made by the CIL subsidiaries on the ground that they were not consulted while framing the FSAs makes it meaningless”, APP said.

It has further complained that railways also metes out discriminatory treatment towards independent power producers while favouring state-owned power plants in allocating resources for transportation of coal. APP has claimed that the quantity of coal dispatched by railways as a percentage of contracted quantity, known as materialisation, is much lower in case of independent power producers in comparison to those plants run by PSUs. In the March-July period of FY15, materialisation for IPPs was 43% while for PSUs it was 97% despite having a common coal supplier — Central Coalfields, a CIL arm — for the plants.


“In case of IPPs, the materialisation is mostly less than the trigger levels of 65% specified in the FSA, even though the trigger level is considerably lower than the trigger level of 90% in case of pre-2009 which are public sector plants,” APP said.

APP also alleged that the Eastern Central Railways provides more rakes to plants lying in its zone compared to those outside, despite having the same coal source, in a bid to retain control and maximise their revenue. This impacts IPPs and PSUs alike. As per the APP, plants lying outside the ECR zone received only 73% of rakes while those inside the zone were provided with more rakes than allotted, at 112%.

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  1. Shivajirao Tipirneni
    Mar 24, 2015 at 4:49 pm
    Both Telangana and Andhra Pradesh have been facing power shortage since a long time during September 2014 Telangana had a peak demand of 180 million units per day as against the average of 140 in Andhra Pradesh a state land to get 700 Mega Watts from southern states A.P. has tied up in all for 900 mega Watts for 2014, working out to 22 million units per day which is just enough to face the power shortage. Both the states can augment Electricity generation by improving the performance of the Hydro power stations located at several irrigation reservoirs like Srisailam, Nagarjuna sagar, Balimela , Sileru, and Machkund and other reservoirs .This methodology of augmenting electrical power generation by cloud seeding is used by several intelligent nations like Chaina, Australia, American states and south American continuous like Honduras tmania power company gets its reservoir filled up whenever there is considerable depleation water levels caused by diversion of water for Hydro-power generation . Consequently they get more power at an inexpensive cost, the cost benefit ratio being , 1:60 in other countries too the cost benefit ratio of Hydro-power generation is i:30 . Since Indian politicians bureaucrats and Engineers refused to use there brains to copy this Technology of cloud seeding and implement similar operations in Indian states the poor Indian Industrialists urban citizens , Agriculturalists, and Munlities suffer avoidable water shortage problems. Even now Telangana and A.p. chief ministers must stop quarreling on petty problems and start co-operating with each other in making joint tours to the above coutries and prepare reports for cloud seeding practices and implement them in India for public good.Dor more details see the following websites. 1. 2. 3. mages/ScienceOfClouds.pdf 4. x.htm 5. N.ht PROF. T.SHIVAJI RAO, DIRECTOR FOR ENVIRONMENT, GITAM UNIVERSITY, VISAKHAPATNAM, INDIA.

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