Mahanadi Coalfields Ltd (MCL) has offered 143,500 MT coal to the power utilities, in accordance with the CIL’s compliance to substitute the intake of costlier imported coal.
Under the “Import Substitution” exercise, various power utilities were given the dispensation for supply of domestic coal to meet their shortfall against the Annual Contracted Quantity (ACQ).
The power plants that blend high energy coal from overseas market with low grade domestic variety, were urged to substitute the imported part with high quality domestic coal to be offered by road mode from the sources where coal was available with CIL.
Accordingly, three utilities having Fuel Supply Agreement with SECL were offered coal through road mode from MCL for Jun’19. Adani power’s Tirora plant accounted for the lion’s share with 100,000 MT coal, followed by 34,000 MT to SKS Power and 9,500 MT to DB Power Ltd.
The coal would be offered from MCL’s Lakhanpur OCP in IB coalfield and Hingula OCP in Talchar coalfields. The consumers have the option of lifting coal from any of the two sources or a mix of both as per their choice.
MCL had made it clear that the beneficiary power producers would have to submit an undertaking that they have either stopped import or will be stopping further import of coal forthwith. Besides, they were also not supposed to lift coal beyond their ACQ of the FSA.
The customers have been advised to submit their consent and deposit the requisite coal value along with relevant documents for the issuance of Road delivery orders by 28 Jun’19.
Power Plants’ Coal Imports:
As per the data provided by Power Ministry, coal imports taken by power utilities had increased 9% Y-o-Y to 61.66 MnT in FY19. With an increased coal supply from CIL, imports are expected to come down this year.
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