Coal news and updates

After the first phase of Shri Singaji Thermal Power Plant which is proving to be a 'white elephant', in terms of excessive coal consumption, the second phase also seem to be financially 'impractical' on account of irrational fuel costs where cost of transportation of fuel is far more than coal cost.

 

Call for developing and operating mines which are intended to supply coal for the second phase, has found no takers in past 8 months.

 

Madhya Pradesh Power Generation Company (MP power genco) has got Gondbehera Coal mines in Singrauli district from where coal would be used for power production in second phase of Shri Singaji Thermal Power Plant in Dongalia village of Khandwa district where 2 units each of 660 megawatts are to be developed.

 

State power genco invited tenders from mine operators for developing and operating these mines in February this year but till date no one has turned up resulting in extension of tenders for five times in these 8 months.

 

Executive director (fuel management) of MP genco, A K Sankule said, "Basically it is an underground mine where coal deposits are below 300 meters, so bidders are not able to determine rates of coal leading to delay. Once their mining plan is ready it would be much easier. However, we initially wanted that these should also be developed by bidders. But as of now the same is being done by coal ministry".

 

A total of around 120 bore wells were to be dug for making the mine plan, of which 95 are done by union government's agency Central Mine Planning and Design Institute Limited (CMPDI), it will be complete by March, things would be better then, he said.

 

"As of now the dates have been extended till October 24," Sankule told TOI.

 

Interestingly, these coal mines are also located at a distance of around 1,000 kilometers from Dongalia. 'Singrauli to Khandwa is a single line and there will be transportation problems pushing up cost of power produced,' said another official of MPPGCL wishing anonymity.

 

Sources said case of the first phase whose one unit is already operational, coal is supplied from Korba in Chhattisgarh which around 900 kilometers, transportation cost is much higher than the cost of coal itself. In month of August this year, MPPGCL coughed up Rs 16 crore for transporting coal worth Rs 9 crore. Now the same is likely to happen with the second phase also, said sources.

 

Per unit coal consumption in the operational units is also nearly double, where more than 1 kilogram of coal is being used for generating one unit of power, said sources. Dada Dhuniwale power project in the same district considered an extension of Shri Singaji has already been shelved on feasibility grounds.

 

 

Source: ToI