India is considering reducing the mandatory blend of imported coal with locally produced fuel for thermal power units from 6% to 4-5% due to higher coal stocks at plants. The advisory on coal blending, extended in March to ensure power availability during peak demand, is set to expire on June 30.
New Delhi: India could lower the amount of imported coal that thermal power units must blend with the fuel produced locally to around 4-5% from the current 6%, because of higher coal stocks at the plants, government officials said.
The current advisory on blending of imported coal, which was extended in March to ensure availability of power in peak demand, is set to expire on June 30. Coal stock at thermal power plants has depleted just around 3.1 million tonnes since the beginning of the financial year, despite high electricity demand.
Power plants currently have a total stock of 47.4 million tonnes, 94% of which is domestic coal , compared with 36.2 million tonnes a year back.
This is mainly because of increased coal production , higher supply of railway rakes , and better logistical arrangements to transport the fuel to power plants.
The government is taking pre-emptive measures to ensure coal stock in the monsoon period . The power and coal ministries have been holding review meetings to take stock of the fuel position at thermal plants, which still contribute about 70% to the country's total power generation and largely handles the base load.
The aim of the power ministry is to have around 33-34 million tonnes of coal stocks at power plants on September 30, according to the official.
This is almost 45% higher than that on the same day last year.
In case of any slippage in supply or transport, the stock could be at 25 million tonnes by September end. "If the average rakes of 403 per day continues in the second quarter, there will be about 33-34 million tonnes by September 30," a senior official said.
Blending may still be required keeping in mind the target of 33-34 million tonnes of coal stocks by September end. The June-September monsoon season generally sees a fall in the production and transportation of coal than other parts of the year.
This causes a faster depletion of fuel at power plants.
In September end last year, power plants had coal stocks of 23.5 million tonnes, including imports.
This was primarily because of high power demand in August and September because of a deficit in monsoon rains and sultry weather.