CIL says coal supply to improve further post Durga Puja

Coal India

on Tuesday said it has scaled up supplies to power utilities to 1.51 million tonnes per day during the past four days of October ahead of the festival.

The total off-take has gone up to 1.73 MTs per day during October, till Monday, posting 10% growth over same period last year, company’s director marketing S N Tiwary said.

“The aim is to ramp up supplies to power sector even higher which we hope to achieve post puja. Once the dispatch rate is maintained the stock build up will help tide over the tight situation” he said.

CIL

produced close to 126 MTs of coal during current fiscal’s second quarter, a record high, posting 9.6% year-on-year growth. During the first ten days of October CIL’s output logged 6.5% growth over last October. Going forward, the production will increase further when the attendance at coalfields improves after festival holidays, he said.

CIL’s supplies to power generation companies have been at an all-time high till now this fiscal but high demand and power generation upset the demand-supply scales.

Once October and major festivals are over conditions will improve and the power demand is expected to be down by a notch, easing the pressure.

During H1 of the current fiscal loading to power sector at 225.3 rakes per day was up 28% compared to 176.3 rakes of last year same period. The company is building up adequate evacuation logistics to transport coal.

He said 14 imported coal based power plants have scaled down their generation due to record high coal prices in the international markets. As a consequence, domestic coal based thermal power plants had to step in to fill in the generation shortfall, which in turn placed an unfactored load of around 10 MTs on CIL. Had this not happened the stocks at power plants would have been around 17MTs to 18 MTs instead of the bleak 7 MTs now, he said.

During September, generation from imported coal plants at 2, 041 MW fell short by 75% against the target of 8,114 MW. The generation logged a negative growth of 72% compared to September’20 when they generated 7,238 MW.

“CIL is marshalling all its efforts to bridge the demand supply gap to the extent possible. With 40 MTs stock at our pitheads and increasing production, availability of coal would not be a problem,” he said.

Coal supply prioritised temporarily to power sector to replenish dwindling stock: CIL

State-owned

CIL

on Tuesday said the supply of coal was prioritised temporarily to power producers to replenish their dwindling stock of the dry fuel. The statement assumes significance in the wake of the country’s power plants grappling with fuel shortages.

“In view of the low stock position at the power house end due to a spurt in economic activities during post-second wave of COVID-19, the supply of coal was prioritised temporarily to the power sector to replenish their dwindling coal stock,” Coal India Ltd (CIL) said in a statement.

To achieve the same in the quickest possible time, coal companies were advised only to go slow temporarily on conducting further e-auction of coal, barring the special forward e-auction for power.

“This was a highly transitory measure to tide off the current high demand scenario in the power sector and normalcy will be restored soon,” the filing said.

Coal Minister Pralhad Joshi on Tuesday discussed ways to improve coal stocks at thermal power plants with Railway Minister Ashwini Vaishnaw and Power Minister R K Singh.

The coal minister also reviewed the performance of Coal India arm Northern Coalfields Ltd (NCL), and directed it to ramp up production and load to at least 34 rakes of the dry fuel daily.

Last week, Joshi said the government was making full efforts to meet the coal demand of power producers and stressed that steps are being taken to soon ramp up the dry fuel supply to two million tonnes per day.

The minister also felicitated machine operators at the Nigahi opencast coal project of NCL and said that their role is integral to scale up coal production and despatch from the block.

“Flagged off a coal dumper truck at Nigahi OCP, @NCL_SINGRAULI. This indigenous dumper has been manufactured by BEML and furthers #MakeInIndia initiative,” he said.

Coal India accounts for over 80 per cent of the domestic coal output.

Govt mandates energy accounting of discoms to reduce T&D losses

The government on Tuesday mandated electricity distribution companies to undertake energy accounting on periodic basis.

A regulation in this regard was issued by Bureau of Energy Efficiency (BEE) with the approval of Ministry of Power, under the provisions of Energy Conservation (EC) Act, 2001, an official statement said.

Energy accounting reports will provide detailed information about electricity consumption by different categories of consumers and the transmission and distribution losses in various areas. It will identify areas of high loses and theft and enable corrective action. This measure will also enable fixation of responsibility on officers for losses and theft. The data will enable the discoms to take appropriate measure for reducing their electricity losses. The discoms will be able to plan for suitable infrastructure up-gradation as well as demand side management (DSM) efforts in an effective manner. This initiative will further contribute towards India’s climate actions in meeting our Paris Agreement Goals, the statement said.

The notification stipulates quarterly energy accounting by DISCOMs, through a certified energy manager, within 60 days. There will also be annual energy audit by an independent accredited energy auditor. Both these reports will be published in the public domain.

These regulations have been issued under the ambit of Energy Conservation Act, 2001, with an overall objective to reduce distribution sector in-efficiency and losses thereby moving towards economic viability of discoms.

The statement said BEE has a pool of National Accredited Energy Auditors and Energy Managers who possess expertise in preparing energy accounting and audit reports, duly providing recommendations for loss reduction and other technical measures. The aforesaid regulations were pre-published in April 2021 for seeking public comments and thereafter Ministry of Power held detailed discussions with various stakeholders before finally issuing these regulations, it said.

In September 2020, through a separate notification, all the Electricity Distribution Companies were notified as Designated Consumers (DCs) under the EC Act. “Owing to the potential benefits of energy auditing on the entire distribution system and retail supply business, it was imperative to develop a set of comprehensive guidelines and framework such that all Distribution utilities across India can adhere to and formulate actions,” it said.

Energy Accounting prescribes accounting of all energy inflows at various voltage levels in the distribution periphery of the network, including renewable energy generation and open access consumers, as well as energy consumption by the end consumers.

Energy accounting on periodic basic and subsequent annual energy audit, would help to identify areas of high loss and pilferage, and thereafter focussed efforts to take corrective action.

The objectives to be achieved through periodic energy accounting are development of a comprehensive energy accounting system to quantify and determine actual losses in the power distribution system, segregated across technical and commercial losses.

It also aims to ientify areas of leakage, theft, wastage or inefficient use and enable distribution utilities to undertake targeted improvement activities to reduce T&D losses.

India’s coal import drops in August despite higher fuel demand from power sector

India’s coal import registered a decline of 2.7 per cent to 15.22 million tonnes (MT) in August this year amid the country’s power plants grappling with fuel shortages.

The country imported 15.64 MT of coal in the corresponding month last year.

According to data compiled by mjunction services, “Imports in August 2021 stood at around 15.22 million tonnes…imports in August 2021 were also down by 2.7 percent over August 2020.”

mjunction CEO and MD Vinaya Varma attributed the decline in volumes to the steady increase in seaborne coal prices coupled with the initiatives taken by the domestic miners for import substitution.

However, he said, there is a spurt in demand from the power sector.

“What impact it will have on imports, given the volatility in international prices, is to be seen,” he added.

Of the total import during August 2021, non-coking coal was at 9.08 MT, against 10.33 MT imported during August last year. Coking coal imports were at 4.37 MT, up against 3.17 MT imported during August 2020.

India’s coal imports during August 2021 through the major and non-major ports are estimated to have decreased by 6.71 per cent over July 2021.

Imports in July stood at 16.31 MT.

During April-August 2021, coal import stood at 92.49 MT, about 21.27 per cent higher than 76.27 MT imported during April-August 2020.

During April-August 2021, non-coking coal import was at 60.85 MT as compared to 51.23 MT imported during April-August 2020.

Coking coal imports were recorded at 22.19 MT, against 14.38 MT imported during the same period last year.

Coal India which accounts for over 80 per cent of domestic coal output had earlier said that due to skyrocketing coal prices in international markets, all the consumers have been vying for domestic coal, hiking up the demand.

Coal Minister Pralhad Joshi on Thursday said closure of some mines, and inundation of a few others due to monsoon led to the crisis but there is no need to panic as the situation is improving.