Coal news and updates

Brace for more power cuts as Phailin hits coal supplies

The effect of cyclone Phailin and heavy rains that wreaked havoc across eastern India have hit coal supplies to thermal power stations in the country, with coal stocks at thermal power beginning to decline, affecting production and dispatches. This may lead to a drop in power supplies and increased power cuts.

Coal India officials admit that production and dispatch to many power plants have been affected. "Against a production target of 30 million tonnes for October, the company has been able to achieve only about 24 million tonnes so far. The target for the month is likely to be missed," said a senior CIL official on condition of anonymity.

According to figures released by the Central Electricity Authority (CEA), 20 thermal power stations have coal stocks that will last them barely seven days. In September, the situation was very different with only 12 such plants in a similar situation.

Plants with super critical stock position - enough for four days or less - have increased from just five in September to 14 as of Monday this week, highlighting the grimness of the situation.

Stocks in some 100-odd power plants have declined from 22 million tonnes in September to 18 mt now, CEA figures reveal. "Both production and offtake in two large coalfields in Orissa's Mahanadi Coalfields - Talcher and IB Valley - have been badly affected, first due to heavy rains and then by the cyclone.

Production and loading of coal on railways have been also been affected in Central Coalfields, Eastern Coalfields and Bharat Coking Coalfields," he said.

The current coal stock position is in sharp contrast to the situation a couple of months ago when power plants requested Coal India to reduce supplies as they had no space for more stock.

Source: The Economic Times