Ministry of Power (MoP) has outlined a mechanism for transparent distribution of domestic coal via rail rakes for thermal power plants. The exercise has been carried out in lieu of preparations for an uninterrupted power supply during high demand period of April-May, 2023.
As per estimates, domestic coal requirement at thermal power plants is expected to reach 222 million tonne (mnt) in the first quarter of FY 2023-24 (April-June, 2023), against which the likely availability from all sources will be around 201 mnt due to constraints in railway logistics.
Subsequently, MoP has decided to carry out domestic coal allotment based on the ratio of fortnightly average power generation of thermal power stations. Here, the allotment specifically comprised supply from state-run miners like Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL).
Factoring alternative avenues of coal supply
With an aim to utilise the rail network efficiently by providing adequate rakes to plants in need, the MoP has decided to factor out plants having alternate modes of coal supply while assessing the allotment plan.
In particular, coal requirement by plants lifting the material via merry-go round (MGR), conveyor and other means of transportation, were excluded from the rake allotment scheme. Because, they do not use the railway network. On similar lines, plants lifting coal via road mode have not been included.
Further, plants securing coal supplies from captive mines, were not considered for rail rakes allotment from CIL or SCCL. In this regard, the availability from captive mines would be taken at levels of March, 2023, considering a 5% growth.
The MoP has also informed that if state electricity board was found to be selling power generated from domestic coal in exchanges, their rakes will be reduced accordingly.
Based on these principles, the station-wise rake allocation will be made and operationalised from 1 April, 2023. The power plants have been advised to immediately plan and make arrangements for shortfall in domestic coal supply at their level so that power demand is fully met.
As per data maintained by CoalMint Research, India’s coal rake movements (including domestic plus imported coal) stood at 15,172 units in February 2023, up 6% y-o-y. Rake movement was down 6% m-o-m on absolute basis due to fewer days in February. Otherwise, average supplies via rail mode increased by 4% to 542 rakes/day in February, 2023 compared to 522 rakes/day in January, 2023.
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