Lok Sabha Question No. 1731 (UNSTARRED), answered on 2017-12-28
Subject: Shortage of Fuel
Ministry: POWER
Asked by: RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB, SANJAY SHAMRAO DHOTRE

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.1731 TO BE ANSWERED ON 28.12.2017

## SHORTAGE OF FUEL

1731.  SHRI RAHUL SHEWALE: SHRI BHARTRUHARI MAHTAB: SHRI SANJAY DHOTRE:

Will the Minister of POWER be pleased to state:

(a) whether the shortage/non-availability of fuel for power generation plants/stations  and  its  adverse  impact  on  power  generation  of  various  States  still persists in the country despite several measures taken by the Government in this regard;

(b) if so, the details thereof and the reasons therefor along with the fuel supplied o power plants/stations across the country during each of the last three years and the current year;

(c) whether there are a number of power plants/stations which are on the verge of closure due to high cost of fuel in the country;

(d) if so, the details thereof, State-wise along with the reaction of the Government thereto;

(e) whether the Government  proposes to provide cheap fuel or financial assistance  to  such  plants/stations  for  their  survival  in  the  country  and  if  so,  the details thereof; and

(f) the  other  steps  taken/being  taken  by  the  Government  to  ensure  timely uninterrupted fuel supply at affordable rates to the power generation plants/ stations across the country?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) & (b) : Due to several measures taken by the Government, the availability of coal in power plants have improved. The overall coal stock in the coal based power plants have increased from 7.3 Million Tonnes (MT) as on 19.10.2017 to 12.9 MT as on 25.12.2017.

The  drop  in  coal  stock  was  mainly  during  the  2 nd  quarter  of  2017-18 because  of  heavy  rains  during  monsoon  in  the  mining  area  which  affected  coal production,  loading  at  mines  and  transportation  of  coal.  Further,  due  to  reduced generation  from  hydro,  wind  and  nuclear  power  station,  the  generation  from  coal based power station had to be increased.

...........2.

The receipt of coal by the coal based power plants during the last three years and the current year are given at Annex-I.

The  availability  of  domestic  gas  for  power  sector  is  very  low as availability of gas from KG D6 field has reduced drastically . The details of the gas allotted and supplied / consumed during the last 3 years and the current year ( Upto November, 2017 ) is given at Annex-II.

(c) to (e) : Generation  is  a  delicensed  activity  as  per  Electricity  Act.  2003.  The operation  of  a  power  station  is  done  based  on  the  merit  order  despatch  by  the Discoms so that the over all cost of power purchase is less.

Further,  to  reduce  the  cost  of  coal  to  power  station,  the  Government has  introduced ' flexibility  in  utilization  of  domestic  coal  for  reducing  the  cost  of power generation ' where the State / Central Gencos would have flexibility to utilize their coal in an efficient and cost effective manner in their own power plants as well as by transferring coal to other State / Central Gencos Power plants . This would lead to availability of cheaper power to discoms.

(f) : The Union Government has taken the following steps to ensure timely and uninterrupted fuel supply at affordable rates to the power plants :

- (i) The  availability  of  coal  is  being  regularly  monitored  closely  to  ensure  that generation of power plant is not affected due to shortage of coal.
- (ii) Coal  blocks  have  been  allotted  to  central/  state  power  utilities  to  improve domestic coal availability.
- (iii) The  Government  has  introduced  a  scheme  SHAKTI ( Scheme for  Harnessing and  Allocating  Koyala ( Coal ) Transparently  in  India )-2017,  to  provide  coal linkages to the power plants which do not have any linkage .
- (iv) Awarding  gas  blocks  for  Exploration  &  Production  activities  in  various sedimentary basins of the country, and formulation of Hydrocarbon Exploration and Licensing Policy ( HELP ) in March, 2016 .
- (v) Policy  for  marketing  freedom  for  gas  produced  from  Deepwater  &  Ultra Deepwater areas .
- (vi) The  Government  has  introduced  flexibility  in  utilization  of  domestic  coal amongst power generating stations to reduce the cost of power generation. The  State/Central  Gencos  would  have  flexibility  to  utilize  their  coal  in optimum and cost effective manner in their own power plants as well as by transferring coal to other State/Central Gencos Power plants for generation of cheaper power.

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ANNEX-I ANNEX  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  UNSTARRED QUESTION NO. 1731 TO BE ANSWERED IN THE LOK SABHA ON 28.12.2017. ***********

The receipt of coal by the coal based power plants during last three years and current year

| Year                    | Domestic Receipt ( MT )   | Imported Receipt ( MT )   | Total Receipt ( MT )   |
|-------------------------|---------------------------|---------------------------|------------------------|
| 2014 - 15               | 450 . 3                   | 91 . 2                    | 541 . 5                |
| 2015 - 16               | 481.3                     | 80 . 6                    | 561 . 9                |
| 2016 - 17               | 494 . 9                   | 66 . 1                    | 561 . 0                |
| 2016-17 ( Apr - Nov )   | 312 . 9                   | 44 . 7                    | 357 . 6                |
| 2017 - 18 ( Apr - Nov ) | 343 . 3                   | 38 . 8                    | 382 . 1                |

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ANNEX-II ANNEX REFERRED TO IN REPLY TO PARTS (a) & (b) OF UNSTARRED QUESTION NO. 1731 TO BE ANSWERED IN THE LOK SABHA ON 28.12.2017.

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The  gas  allotted  and  supplied / consumed  during  last  3  years  and  current  year ( Upto November ' 17 )

( Figures in MMSCMD )

| Years                     | Domestic Gas Allocation   | Long - Term RLNG ( Imported ) Contracts   | E - bid RLNG Allocation ( for the year 2015 - 16 and 2016 - 17 )   | Domestic Gas Supplied / consumed   | RLNG supplied / c onsumed   | Total Gas Supplied / consumed   |
|---------------------------|---------------------------|-------------------------------------------|--------------------------------------------------------------------|------------------------------------|-----------------------------|---------------------------------|
| 2014 - 15                 | 84 . 31                   | 5 . 38                                    | NA                                                                 | 23 . 61                            | 1 . 59                      | 25 . 20                         |
| 2015 - 16                 | 87 . 09                   | 5 . 38                                    | 9 . 62                                                             | 21 . 63                            | 6 . 63                      | 28 . 26                         |
| 2016 - 17                 | 87 . 04                   | 5 . 73                                    | 9 . 57                                                             | 22 . 70                            | 6 . 89                      | 29 . 59                         |
| 2017 - 18 ( upto Nov,17 ) | 87 . 04                   | 7 . 43                                    | NA                                                                 | 23 . 07                            | 8 . 73                      | 31 . 80                         |

( MMSCMD : Million Metric Standard Cubic Meter per Day )

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