Date:04/02/2005 URL: http://www.thehindubusinessline.com/2005/02/04/stories/2005020403041700.htm

Back DVC may buy more coal from Eastern Coalfields

Pratim Ranjan Bose

Kolkata. Feb. 3

DAMODAR Valley Corporation (DVC) is planning to increase its coal supplies from Eastern Coalfields Ltd to tide over the short supply of coal at its 840 MW ( 4 X 210 MW) Mejia thermal power station (MTPS) in Bankura in West Bengal.

DVC was in fact forced to shut down the power station last year due to coal shortage. The plant currently has a coal stock of one-and-a-half-days' supply sourced mostly from Bharat Coking Coal Ltd (BCCL).

Having undergone a 210-MW capacity addition during the current year, MTPS will emerge as the biggest DVC thermal power station following a fresh capacity addition of 500-MW in the Eleventh Plan period.

DVC sources blamed the corporation's existing supply agreement, which is biased in favour of BCCL, as the root cause of the trouble. In view of the BCCL failing to maintain adequate supplies, the DVC authorities had made an unsuccessful effort to source its coal requirements from Central Coalfields Ltd (CCL) and other CIL subsidiaries.

The Railways had then said that any such sourcing would increase the travelling time for rakes by more than double. Since wagons were in short supply, the railways said they would not be able to cater to the DVC's demand for additional rakes.

According to sources, the ECL authorities have not only agreed to make additional supplies but also alter the mode of transport from rail to road.

As the ECL mines are located closer to the Mejia power station, the average transport time for coal is expected to be shorter.

The DVC, however, is aiming at the allocation of captive coal-mining blocks as the long-term solution to its requirement of coal. The corporation currently owns a single coal block at Bermo, provided way back in the 1950s, which has largely been exhausted.

Undergoing a 1210-MW capacity addition in the Tenth Plan period to be followed by at least a 1500-MW capacity addition in Eleventh Plan as against its existing thermal capacity of roughly 2500 MW, DVC will require no less than 15-16 million tonnes of coal in the next few years compared with its existing requirement of six million tonnes. The 1210-MW capacity addition in the Tenth Plan will increase the coal intake by four million tonnes.