Coal Ministry Urges UP to Develop Captive Coal Block for Long-Term Thermal Power Fuel Security

Coal Ministry on Thursday advised Uttar Pradesh to accord priority to the early development of its captive coal block to build long-term fuel security for its thermal power plants and reduce dependence on external coal sources. In an official statement, the ministry said that recent media reports have indicated that the “State of Uttar Pradesh is facing a severe power shortage on account of a disruption in coal supply”.

“The Ministry of Coal places the following facts on record to clarify the actual position and to reiterate its advice to the State to expedite development of its own captive coal block, even as Coal India Limited (CIL) continues to fully meet the State's coal requirement,” the statement added. As on September 15, “none of the thermal power plants of Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) is in the critical-stock category. The current stock position, therefore, does not indicate any critical coal availability constraint at the plant end,” said the Coal Ministry.

According to the ministry, the Saharpur Jamarpani coal block in Dumka district, Jharkhand, holding reserves of more than 973 million tonnes, was allotted to UPRVUNL in 2015 by the Ministry of Coal under the Coal Mines (Special Provisions) Act, 2015, specifically to meet the coal requirement of its thermal power projects. More than 10 years since the allotment, no progress has been made towards operationalisation of the block, on account of a lack of requisite initiative by UPRVUNL.

As a result, the entire coal requirement of Uttar Pradesh's power plants continues to be met by CIL, the ministry further said. Meanwhile, 14 other coal blocks allotted for captive use in the power sector on or after the date of allotment of Saharpur Jamarpani have already been operationalised and have commenced coal production for their respective end-use plants. The coal stock position at UPRVUNL's thermal power plants has been improving steadily. Stock stood at 7.25 lakh tonnes (LT) on September 1 and rose to 8.41 LT by September 15. Over the last seven days, average daily coal receipt of around 0.90 LT has exceeded average daily consumption of around 0.83 LT, reflecting a continuing build-up of stock.

“Unloading constraints at various plants, which lead to periodic restrictions on rake placement by the Railways, limiting further augmentation of coal supplies,” said the ministry. It is also pertinent to note that despite coal stock having increased to over 8 LT, the current-month Plant Load Factor (PLF) of UPRVUNL's thermal power plants stands at only around 48 per cent. “The lower generation during the current month cannot, therefore, be attributed to inadequate coal availability at the plant end. Improvement in generation would require the State to address operational constraints at its generating stations and ensure optimal utilisation of available coal stock,” the ministry noted.

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