Lok Sabha Question No. 1601 (UNSTARRED), answered on 2016-11-24
Subject: Coal Stock for Power Plants
Ministry: COAL
Asked by: MALLIKARJUN  KHARGE, PRAHLAD SINGH PATEL, K. ASHOK KUMAR

## GOVERNMENTOF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO.1601 TO BE ANSWERED ON 24.11.2016

## 'Coal stock for Power Plants'

## 1601. SHRI MALLIKARJUN KHARGE: SHRI PRAHLAD SINGH PATEL: SHRI K. ASHOK KUMAR:

Will the Minister of COAL be pleased to state:

- (a) whether it is a fact that 40 of the 101 power plants have coal stocks for less than 15 days and the current coal stock for power utilities is reaching critical level, if so, the details thereof and the reasons therefor;
- (b) the current mechanism in place for routine assessment of coal supply, maintaining of stock and delivery in time to the power plants in the country;

(c) whether the Government proposes to maintain the buffer stock in different places in future, if so, the details thereof;

(d) whether  the  CIL  has  been  asked  to  provide  the  full  contracted  quantity  of  coal  to power units under the fuel supply agreements signed in 2011, if so, the details thereof;

- (e) whether  it  is  also  a  fact  that  while  the  FSAs  required  CIL  to  fully  cater  to  power capacity of 78,000 MW a relaxation was provided in 2011 in this regard, if so, the details thereof;
- (f) whether the CIL has failed to meet its target of cumulative production from April to October, 2016 and there has been a decline in the monthly coal production for the same time when the electricity production has gone up leading to shortage of coal stocks in power plants; and
- (g) if  so,  the  steps  taken by the Government for the adequate supply of coal to power plants ?

## A N S W E R

## MINISTER  OF  STATE  (I/C)  FOR  COAL,  POWER,  NEW  AND  RENEWABLE  ENERGY AND MINES

## (SHRI PIYUSH GOYAL)

(a): As  on  16.11.2016,  61  Thermal  Power Plants  (TPPs)  of  the  105  plants  under  review have coal stocks for less than 15 days' requirement.  Three TPPs were having critical coal stock and one TPP was having super critical stock as on 16.11.2016. A non-pithead TPP

having coal stock for less than 7 days is classified as 'critical' and a TPP having coal stock for  less  than  4  days  is  classified  as  'super  critical'.  For  likewise  classification  of  pithead TPPs, these are for 5 days and 3 days respectively. TPPs have been regulating their coal supply  in  current  year  preferring  to  consume  from  their  stocks  owing  to  their  comfortable coal stock position due to power demand dynamics arising out of merit order dispatch rules of discoms. As a result, coal stock of TPPs had declined from 38.87 MT  equivalent to 27 days' requirement as on 01.04.2016 to 18.75 MT equivalent to 13 days' requirement as on 16.11.2016.

(b): In  addition  to  the monitoring mechanism available at coal companies, CILand Central Electricity Authority (CEA), coal supplies to Power Utility sector is monitored regularly by a Inter-Ministerial Sub-Group of the Infrastructure Constraints Review Committee comprising representatives of Ministry of Power, Ministry of Coal and Ministry of Railways constituted by the Infrastructure Review Committee of Cabinet Secretariat.  This Sub-Group takes various operational  decisions  for  meeting  any  contingent  situations  relating  to  Power  sector including critical coal stock position for power plants.

(c): To  maintain  coal  stocks  TPPs,coal  stocking  norms  depending  on  the  distance  of  the power plan from the mine have been laid down as per table below:

Table

| Location                             |   Stocking Norms (in Days) |
|--------------------------------------|----------------------------|
| Pit-head Station                     |                         15 |
| Upto 500 kms. away from Coal Mine    |                         20 |
| Upto 1000 Kms. away from Coal Mine   |                         25 |
| Beyond 1000 Kms. away from Coal Mine |                         30 |

(d)  &  (e): Coal  is  presently  supplied  from  CIL  sources  under  long-term  Fuel  Supply Agreements (FSA) with a tenure of 20 years wherein coal supply has been assured to the tune of 90% of Annual Contract Quantity (ACQ) for pre-2009 TPPs (TPPs commissioned as on 31.03.2009) and 75% of ACQ for post-2009 TPPs (TPPs commissioned/coming up after 31.03.2009). In respect of post-2009 TPPs, supply of indigenous coal has been assured to the tune of 65% of ACQ upto 2014-15, 67% of ACQ in 2015-16 and 75% of ACQ in 201617. The Presidential Directive issued by Government on 17.07.2013 directed conclusion of FSA  in  respect  of  Post-2009  TPPs  of  78535  MW  capacity  which  were  likely  to  be commissioned by 31.03.2015.

(f)  &  (g): Month  wise  coal  production  target  and  achievement  for  the  year  2016-17  is  as below:

## (Fig. in MT)

| Month                  |   Target |   Achievement |
|------------------------|----------|---------------|
| April                  |   44.48  |        40.366 |
| May                    |   44.639 |        42.542 |
| June                   |   43.36  |        42.761 |
| July                   |   40.294 |        36.739 |
| August                 |   40.89  |        32.435 |
| September              |   41.505 |        35.213 |
| October                |   51.881 |        43.512 |
| April to October, 2016 |  306.995 |       273.568 |

Offtake performance of CIL in the current year up to October, 2016 has been 292.16 MT (Provisional)  against  target  of  331.76  MT,  with  88%  materialization.    Generally,  it  is observed  that  coal  production  slows  down  considerably  between  June-September  every year. This trend is evident this year also and the downswing has been greater than previous years  due  to  excessive  rains  in  coal  mining  areas.  The  production  has  picked  up  from October  onwards.  The  details  of  supply  to  Power  Utilities  in  the  country  vis-a  vis  FSA commitment for the last three years and current year is as givenin the table:

Table

| (Figs. In Million Tonnes)                  |    ACQ |   Despatch | % Materialisation   |
|--------------------------------------------|--------|------------|---------------------|
| 2013-14                                    | 415.18 |     353.83 | 85%                 |
| 2014-15                                    | 458.81 |     385.4  | 84%                 |
| 2015-16 (Provisional)                      | 471.96 |     408.75 | 87%                 |
| 2016-17 (up to October, 2016)(Provisional) | 269.82 |     215.29 | 80%                 |

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