Date:03/07/2005 URL: http://www.thehindubusinessline.com/2005/07/03/stories/2005070301320500.htm

Back To bridge demand-supply gap — Power sector told to optimise coal use by cutting T&D losses

Badal Sanyal

Kolkata , July 2

AS part of the strategy to bridge the demand-supply gap of coal, the Committee of Secretaries has advised the power sector to optimise coal consumption by reducing transmission and distribution (T&D) losses, which stand at around 33 per cent of the thermal power generated in the country.

The committee has observed that about 393 billion units were generated by the power sector, and of this about 128 billion units were lost on account of T&D. The loss is equivalent to the consumption of around 100 million tonnes (mt) of coal.

The scenario is worrisome in view of the overall coal shortage in the economy. Although the Planning Commission, in its mid-term review, has projected the demand-supply gap at the end of the Tenth Plan (2006-07) to narrow to about 41 mt from its earlier projection of about 55 mt, the committee is not sure as to how the demand will be met. It has thus prepared a strategy for producers and consumers and the carriers of coal.

Coal India Ltd has been asked to advance its production planning, while major power utilities have been asked to import coal in a planned manner. The utilities have been advised to improve unloading infrastructure at their end to reduce turnaround time of wagons, as coal movement needs to be improved through augmentation of wagons in circuits where more coal is available. Despite availability of coal at Ib Valley in Mahanadi Coalfields Ltd, at Korba in South Eastern Coalfields Ltd and at North Karanpura in Central Coalfields Ltd, it could not be dispatched due to non-availability of wagons.

The committee has stressed the need for improvement of port infrastructure to handle more coal, facilitating movement of domestic and imported coal to various destinations in the country. It is pointed out that about four lakh tonnes of coal for Tamil Nadu Electricity Board is lying at the Paradip, Haldia and Vizag ports for the past few months because of inadequate coal handling facilities.

The committee has asked National Thermal Power Corporation to expedite commissioning of Pakri Barwadi coal block, which was recently allotted to it. It is felt that this will help NTPC to take care of its growing requirement of power grade coal.

For the current coal shortage, the committee has held owners of the virgin coal blocks responsible, mainly for their lackadaisical attitude towards developing those blocks for captive consumption purposes. Of the 143 coal blocks identified by the Coal Ministry for allocation, a total 86 blocks were allotted in phases in the last decade. But coal production has begun in only eight blocks contributing 9.2 mt in 2004-05. Production from these blocks is expected to reach about 12.5 mt in 2005-06, against a target of more than 55 mt.