Lok Sabha Question No. 2549 (UNSTARRED), answered on 2023-03-16
Subject: Coal Fired Power Plants
Ministry: POWER
Asked by: P. Velusamy

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.2549

## ANSWERED ON 16.03.2023

## COAL FIRED POWER PLANTS

2549.  SHRI VELUSAMY P.:

Will the Minister of POWER be pleased to state:

- (a) whether  the  Government  is  aware  of  the  fact  that  coal  fired  power  plants  are facing shortage due to low inventory level;
- (b) if  so,  the steps taken by the Government to reduce the shortage due to excess demand of power consumption;
- (c) whether  the Government  allows  import of coal by the power  generation companies;
- (d) if so, the details thereof;
- (e) whether the power generation companies are allowed to sell power on exchanges at higher rate by the buyers under Power Purchase Agreements (PPAs); and
- (f) if so, whether this cost would be passed on to the distribution companies and if so, the details thereof?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (d) : As  on  12.03.2023,  the  total  coal  stock  available  with  the  coal  based thermal power plants monitored in CEA is 33.5 Million Tonnes (MT), which is sufficient for an average of 12 days at a requirement of 85% Plant Load Factor (PLF).

However,  the  Government  has  taken  the  following  steps to  ensure adequate availability of coal:-

1. To address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as  for  meeting  any  contingent  situations  relating  to  Power  Sector  including  to alleviate critical coal stock position in power plants.

2. An  inter-ministerial  Secretary-level  meeting  is  held  regularly  to  monitor  coal stocks.
3. Government  has  issued  the  revised  coal  stocking  norms,  which  mandates  the power  plants  to  maintain  sufficient  stock  at  all  times  to  meet  any  contingent situation.
4. Power Utilities have been importing coal considering their requirement as well as cost-economics. Ministry of Power vide order dated 09.01.2023 directed Central/State  Gencos  and  IPPs  to  take  necessary  actions  to  import  coal  for blending at the rate of 6%  by  weight  through  a  transparent  competitive procurement  so  as  to  have  sufficient  stock  at  their  power  plants  for  smooth operations till September, 2023.
5. Railways have taken steps to purchase 1 Lakh wagons.
6. Increase in the net work of Railways in coal mining areas.

(e) & (f) : Regarding sale of power by the generating companies to power exchanges at higher rate than the agreed rate between buyers and generating companies, as per Rule  9  of  the  Electricity  (Late  Payment  Surcharge  and  Related  matter)  Rules,  2022 notified by Ministry of Power on 3rd June, 2022, the generating companies may sell the contracted  power,  which  is  not  requisitioned  by  a  distribution  licensee,  in  the  power exchanges. In case of any gain arising due to sale price in the exchange higher than the expense  borne  by  the  generating  company  including  energy  charges,  transmission charges  and  other  incidental  charges,  the  gains  from  sale  of  such  power  shall  be adjusted in the following order:

- a. Payment to generating company of up to three paise per unit.
- b.    Recovery of Fixed Cost.
- c.    Liquidation of overdue amount.

d.    The balance shall be shared in the ration of 50:50 between the distribution licensee and the generating company.

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