Lok Sabha Question No. 1292 (UNSTARRED), answered on 2023-07-27
Subject: Working Capital and Fuel to State Power Plants
Ministry: POWER
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1292 ANSWERED ON 27.07.2023

## WORKING CAPITAL AND FUEL TO STATE POWER PLANTS

1292. SHRI G.M. SIDDESHWAR:

Will the Minister of POWER be pleased to state:

(a) whether many State power plants are stressed power plants and require working capital to buy coal and start generating power in the country;

(b) if so, the details thereof;

(c) whether such power plants would be offered short term loans from Power Finance Corporation and REC Ltd.;

(d) If so, the details thereof;

(e) the  number  of  State  power  plants  whose  generating  capacity  has  been reduced due to shortage of supply of coal and action taken by the Government to provide fuel; and

(f) whether  the  power  plants  are  generating  power  at  their  full  capacity  to meet energy demand 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  (c)  :  There  has  been  significant  improvement  in  realization  of  dues  of Generating Companies post implementation of Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 promulgated on 3rd June, 2022. The total  outstanding  dues  of  States  towards  Generating  Companies  reported  on PRAAPTI  Portal  which  were  at  Rs.  1,20,540  Cr.  as  on  03.06.2022  have  been reduced to Rs. 61,025 Cr. as on 24.07.2023 with timely payment of twelve (12) Equated  Monthly  Installments  (EMIs).  Distribution  companies  are  also  paying their  current  dues  in  time  to  avoid  regulations  under  the  rule.  However,  some State  Gencos  have  sought  working  capital  assistance  from  PFC  and  REC  for procurement of coal pending realization of their dues.

(d) : Various state utilities are approaching Rural Electrification Corporation  Limited  (REC)  to  sanction  the  loans.  REC  has  provided  loan assistance  to  various  utilities  for  procurement  of  coal.    The  details  are  at Annexure-I.

Also,  Power  Finance  Corporation  Ltd.  (PFC)  has  a  policy  in  place which prescribes sanction of  short  term  loans  to  state  power  plants  requiring working capital to buy coal subject to compliance of Additional Prudential Norms prescribed  by  Ministry  of  Power.  During  FY  2022-23  and  FY  2023-24,  PFC  had sanctioned loans to various State Sector Gencos for procurement of coal. The details are at Annexure-II.

- (e) : As  on  31.03.2023,  the  coal  stock  available  at  180  Domestic  coal based (DCB) plants was 34.6 Million Ton (MT), while on 17.7.2023, it was 33.4 MT which is sufficient to run these plants for an average of 13 days at 85% Plant Load  Factor  (PLF).  Further,  the  coal  stock  at  57  State  Sector  Plants  as  on 17.07.2023 is 9.6 MT, which is sufficient to run these plants for an average of 10 days  at  85%  PLF.  So,  there  is  no  shortage  of  coal  in  State  Sector  Plants. However, coal stock at the plant end varies as per gap between consumption and receipt of coal.

Government has taken following steps to ensure smooth coal supply to power plants for unhindered power generation:-

- 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
- I. in power plants.
- II. An  inter-ministerial  Secretary-level  meeting  is  held  regularly  to  monitor coal stocks.
- III. Government has issued revised coal stocking norms, which mandates the power  plants  to  maintain  sufficient  stock  at  all  times  to  meet  any contingent situation.
- IV. 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 where necessary through a transparent competitive  procurement  so  as  to  have  sufficient  stock  at  their  power plants for smooth operations till September, 2023.

...........3.

- V. As per Railways, during 2022-23, the net induction of coal carrying wagons was about 8800 (about 150 rakes).  During 2023-24, the likely net induction of  coal  carrying  rakes  would  be  about  200  rakes,  which  could  provide additional 50 rakes/day for coal loading.  The expected increase in annual coal  transportation  capacity  on  account  of  wagon  induction  would  be about  70  Million  Tonnes  (MT).  Similarly,  likely  net  induction  of  coal carrying  rakes  in  2024-25  is  about  250  rakes,  which  could  provide additional 60 rakes/day. The expected increase in annual coal transportation capacity on account of wagon induction would be about 85 MT.
- VI. Railways  have  identified  40  number  of  project  for  augmentation  of  coal evacuation. Out of 40 projects, 17 number of projects have already been completed  and  23  projects  are  in  progress.  Out  of  23  projects,  it  is expected that about 18 projects would be completed by 2026-27.
- VII. According  to  Railways,  likely  increase  in  coal  transportation  capacity during 2023-24 and 2024-25 is about 185 MT.
- VIII. To ensure sufficient coal, Captive Coal Mine Production target for Financial Year 2023-24 is kept at 141 Million Tonnes in comparison to 102.69 MT for previous FY 2022-23.
5. (f) : The  Plant  Load  Factor  (PLF)  of  Coal/Lignite  based  power  plants  of capacity 25 Mega Watt (MW) and above during the year 2022-23 was 64.15%. In 2023-24,  the  demand  for  electricity  has  increased  and  power  plants  are generating the electricity as per schedule given to them. The PLF for Coal/Lignite based power plants in FY 2023-24 (up to June 2023) is around 70.02%.

***************

ANNEXURE-I

ANNEXURE REFERRED IN REPLY TO PART (d) OF UNSTARRED QUESTION NO.   1292 ANSWERED IN THE LOK SABHA ON 27.07.2023 **************

## Loans Sanctioned by REC for procurement of Coal

| Sl. No.   | State       | Utility                                                     |   Loan Sanctioned (Rs. Cr.) |   Loan Disbursed (Rs. Cr.) |
|-----------|-------------|-------------------------------------------------------------|-----------------------------|----------------------------|
| 1.        | Maharashtra | Maharashtra State Power Generation Company Limited (MSPGCL) |                      1800   |                     1800   |
| 2.        | Rajasthan   | Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL)       |                      1500   |                     1000   |
| 3.        | Punjab      | Punjab State Power Corporation Limited (PSPCL)              |                       400   |                      400   |
| 4.        | Haryana     | Haryana Power Generation Corporation Limited (HPGCL)        |                      1000   |                      810   |
| 5.        | Karnataka   | Karnataka Power Corporation Limited (KPCL)                  |                      2500   |                     2000   |
| 6.        | West Bengal | West Bengal Power Development Corporation Ltd. (WBPDCL)     |                      3612.5 |                      812.5 |
| 7.        | West Bengal | Durgapur Projects Limited (DPL)                             |                       300   |                      300   |
| Total     | Total       | Total                                                       |                     11112.5 |                     7122.5 |

***********

ANNEXURE-II ANNEXURE REFERRED IN REPLY TO PART (d) OF UNSTARRED QUESTION

NO. 1292 ANSWERED IN THE LOK SABHA ON 27.07.2023 **************

Loans Sanctioned by PFC for procurement of coal

| Sl. No.   | State       | Utility                                                     |   Loan Sanctioned (Rs. Cr.) |   Loan Disbursed (Rs. Cr.) |
|-----------|-------------|-------------------------------------------------------------|-----------------------------|----------------------------|
| 8.        | Maharashtra | Maharashtra State Power Generation Company Limited (MSPGCL) |                        2749 |                       2749 |
| 9.        | Rajasthan   | Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL)       |                         500 |                        500 |
| 10.       | Punjab      | Punjab State Power Corporation Limited (PSPCL)              |                         400 |                        400 |
| 11.       | Haryana     | Haryana Power Generation Corporation Limited (HPGCL)        |                        1000 |                        500 |
| 12.       | Karnataka   | Karnataka Power Corporation Limited (KPCL)                  |                        1500 |                       1500 |
| 13.       | West Bengal | West Bengal Power Development Corporation Ltd. (WBPDCL)     |                         563 |                        200 |
| Total     | Total       | Total                                                       |                        6712 |                       5849 |

**********