Coal scarcity worries power body

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Mumbai, May 30: The Central Electricity Authority (CEA) has convened crucial meetings this week to address the issue of the burgeoning mismatch between the demand and supply of coal.

According to the CEA, the country will have a coal shortfall of nearly 15 million tonne (mt).

Against the coal stock of 19 mt, power stations are left with a paltry

9 mt. CEA has embarked upon a plan whereby states can go in for import

of 12 mt with good quality and calorific value.

“The CEA has been taking up the issue of coal shortfall with the ministries of coal and power in particular. Import is one of the possible solutions but states will have to take call in this regard. This apart, the CEA favours increasing coal linkages to states. Besides, efforts are also being made for the allocation of captive coal mines by the coal ministry to various states and private sector companies. Coal India and its subsidiaries have also been asked to increase their manufacturing capacities," the CEA’s director (planning) VS Varma told FE.

He said the ministries of coal and railway would have to ensure that coal loaded on the rakes from mines was transported to the power stations on a given time.

The CEA’s initiative in this regard is crucial especially when finance minister P Chidambaram last week announced that the central government would give top priority to coal reforms.

The CEA’s move comes at a time when the coal ministry has projected shortage of 95 mt in 2011-12. The coal minister has projected a shortfall of 55 mt against the demand of 460.50 mt during the terminal year of 10th Plan (2006-07). According to the ministry, the shortage will go up to a level of 95 mt against the demand of 620 mt in the terminal year of 11th Plan (2011-12).