Amid power crisis, govt amends methodology for use of coal by pvt stations

Power ministry on Friday announced that it has amended the methodology for use of coal (allocated to states) by private power generating stations (IPPs). The move is in line with other measures taken by the government to deal with the increasing power demand of the country.

"Larger visibility has been given to the power plants by extending the period of supply of coal from 1 year to 3 years," noted the Power Ministry. The ministry has further made amendments in the timeline of bidding process which has been reduced from 67 days to 37 days. The measures have been taken for ensuring more efficient utilisation of domestic coal, it added.

"The Government has taken these measures in order to optimally utilise the railway infrastructure for maximum transportation of coal to the power plants," read the statement. It added that this would enable states to optimally utilise their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far off states.

Meanwhile, reports of power shortages across the country are coming in as coal inventories hit the lowest pre-summer levels in nine years triggering blackouts. Concerns are now rising on how India will cope with surging demand for power amidst record high temperatures this summer season.

With India experiencing its hottest March in 122 years, electricity demand is expected to rise at its fastest pace in at least 38 years, led by the ever-growing demand to irrigate farms and run air conditioners in homes.

Coal India and the coal ministry had asked power plants to stock up, but the utilities kept reducing their inventories. Andhra Pradesh, home to auto giant Kia Motors and drug manufacturer Pfizer, has reported an electricity deficit of 8.7 per cent, as mentioned by Reuters.

Facor Alloys, a producer of ferrochrome used in manufacturing stainless steel, said that its output had reduced by 50 per cent due to power cuts in Andhra Pradesh state.

Not only Andhra Pradesh; Gujarat, Maharashtra, and Uttar Pradesh also have resorted to load shedding or forced power cuts. Jharkhand, Bihar, Haryana and Uttarakhand have also reported power shortages, the news agency added.

Coal inventories dipped to the lowest since 2014 at the beginning of the financial year to nine days, against the government guidelines of 24 days' worth of stock.

(With agency inputs)

Also read: Maharashtra, Gujarat, TN plan huge coal imports amid shortage