The coal ministry is set to allow seamless transfer of coal linkage of old power units to new ones. The move will benefit several aging power plants of NTPC and other state generation utilities, helping them replace these inefficient units with new, bigger plants on the same site.
The coal ministry, which is awaiting the formation of a new government, has included this proposal in the to-do-list, so that a decision could be taken at the earliest. The power ministry has already proposed the changes to the coal ministry, suggesting that the move would not only control pollution, but also make power plants more efficient and generate more electricity.
As per current regulations, coal linkage is non-transferable. Only in limited cases is a transfer allowed, but the process is cumbersome and often delays commissioning of the new project.
The move for seamless transfer of fuel linkage between units of the same project has been proposed at the instance of several state generation utilities. Power sector advisory body Central Electricity Authority (CEA) has received requests from Haryana Power Generation Corporation (HPGCL), Madhya Pradesh Power Generation Corporation (MPPGCL), and Gujarat State Electricity Corporation (GSECL) for transfer of coal linkage of old retiring units to new, bigger replacement units.
?The transfer scheme should be approved soon after the new government takes office. It would benefit close to 20,000 MW of old generation capacity,? said an official source privy to the development.
Close to 20% of NTPC’s power generation capacity of 43,000 MW comprises units that are over 30 years old and need urgent replacement.
A NTPC official said that, on numerous occasions, the company had gone for renovation and retrofitting to extend the life of these units, rather than taking the replacement route due to lack of clarity over fuel linkage. This has not only reduced efficiency of plants, but also increased pollution.
?Many of our old plants are running at 90-95% plant load factor. If these are to be replaced, assurance on fuel supply is of utmost importance so that consumers do not suffer,? said the NTPC official quoted earlier.
Under the scheme for transfer of fuel linkage, the arrangement would work only if the older unit is replaced with new and efficient super-critical units. Moreover, the retiring unit?s capacity should not be less than 50% of the proposed replacement units.
The country?s total generation capacity as of March 2014 stands at 2,43,028.95 MW. Most of the older plants belong to NTPC and a few other state utilities.