Power projects worth Rs 36,000 crore stuck thanks to lack of coal, says govt

Efforts are being made for supplying adequate coal to power projects, the government also said.<br />

hidden July 24, 2014 17:02:17 IST
Power projects worth Rs 36,000 crore stuck thanks to lack of coal, says govt

New Delhi: Power projects worth over Rs36,000 crore and having total generation capacity of 7,230 MW
are stranded due to shortage of coal, the government saidtoday.

Efforts are being made for supplying adequate coal topower projects, the government also said.

"As far as coal-based thermal power plants are concerned,a capacity of 7,230 MW is already commissioned but having nocoal supply.

"Considering an indicative cost of Rs 5 crore per MW, aninvestment of about Rs 36,150 crore has been made in theexecution of these projects," Minister of State for PowerPiyush Goyal said in the Lok Sabha.

The 7,230 MW capacity is spread across 12 projects.In a written reply, Goyal, who also holds the portfolios
of Coal as well as New and Renewable Energy, said generationcapacity of 42,480 MW commissioned after 2009 is presentlyentitled to only 65 per cent of their Letter of Assurance(LoA) commitment.

With regard to gas-based capacity, about 5,349 MW isready for commissioning and is awaiting gas allocation.

"An installed and commissioned capacity of 24,149 MW isrunning at a very low average of 23 per cent PLF (Plant LoadFactor)," the Minister said.

To address the issue of coal shortages, the PowerMinistry has initiated certain steps including issuance ofadvisory to import the fuel.

As per the advisory, the cost of imported coal would bemade a pass through on case to case basis by regulators to theextent of shortfall in the quantity indicated in the LoA orFuel Supply Agreement (FSA).

In a separate reply, Goyal said the government is "makingefforts to make adequate fuel available for power generationthrough coal companies".

To another query, Goyal admitted that gas-based powerplants have been generating only 50 per cent of their
installed capacity during the last few years.

"The main reasons for low generation is insufficient gasavailability from Krishna Godavari Dhirubhai-6 (KG D-6) basin.

"Gas-based generating station can also run on RegasifiedLiquefied Natural Gas (RLNG). However, the imported cost ofRLNG would render the final cost of power generated so highthat it will be difficult to schedule the same for sale," theMinister said.

To increase gas availability for power plants, theMinistry of Petroleum and Natural Gas has taken various steps.

The steps include issuing guidelines on "clubbing/diversion of gas between power plants of same owner with the
intent to serve the largest public interest so that theavailable gas can be used more efficiently in order to improve
the PLF with corresponding increase in electricitygeneration".

PTI

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