Considering the growing need for imports due to constraints in the availability of domestic coal, the Central Electricity Authority (CEA), in an advisory, has told all power-generating companies, power project developers and power equipment manufacturers that boilers, including auxiliaries, should be designed for a 30:70 blend ratio, in which 30 per cent would be imported/high gross calorific value (GCV) coal, while 70 per cent would be indigenous coal. The CEA has also said station facilities should be designed for unloading, handling and blending imported/high GCV coal.
The advisory, issued on April 19, is crucial, as the power ministry has proposed capacity addition of 75,000 Mw during the 12th Plan. Of this, about 55 per cent is expected to be coal-based. CEA’s advisory is also important, as Coal Minister Sriprakash Jaiswal had recently estimated India’s coal imports by the end of 12th Plan at 250 million tonnes.
The CEA, therefore, said, “Coal quality is a major input parameter for the design of a power plant boiler. Large coal quality variations may not be readily accommodated in a plant, and may lead to loss in efficiency. It is thus considered prudent that all future coal-fired thermal power stations to be set up in the country shall be designed to enable the use of a higher percentage of imported/high GCV coal, as may be required.”
A power ministry official, speaking on the condition of anonymity, confirmed the CEA advisory, saying a few power generation utilities had already carried out necessary changes and these had planned to blend more imported coal during expansion.
According to the CEA, the gap between the demand and the indigenous supply of coal was likely to increase, as these supplies unable were unable keep pace with capacity addition in the power sector. Coal imports would be required to bridge the shortfall, especially in supplies to stations designed on indigenous-coal standards. Stations designed primarily for imported coal would also be required.
The CEA’s advisory was based on a report of a group that studied the range of blending imported coal with domestic coal. The group, headed by Suresh Chander, had given its report to the government in April 2011.
In its report, the group had said a large number of Indian power utilities were already using imported coal for blending and generally, stations blended 10-15 per cent of imported coal by weight.
Govt working on PPP model for CIL mines
Facing criticism for its inability to meet the growing demand of coal, the government is working on a proposal under which CIL would engage private sector companies to undertake mining on behalf of the PSU.
The proposal to involve private sector under the PPP mode, sources said, was recently discussed between Planning Commission Deputy Chairperson Dr Montek Singh Ahluwalia and Coal Secretary Alok Perti.
The Coal Ministry, they said, is considering a model agreement - mining, development and operations (MDO) - under which private sector entity would undertake mining operations, while the ownership and sale of coal would rest with Coal India (CIL).
Dr Ahluwalia, in a letter to Coal Minister Sriprakash Jaiswal has recently said, “It should be possible to expand coal mining operations rapidly through a PPP model that can enable a fair and transparent framework based on competitive bidding.”
CIL, in which government has a majority stake, has already done some preliminary work on the new model.
Ahluwalia wants the Ministry to prepare a model concession agreement which could be put up before the inter-ministerial group and the Cabinet for approval.CIL which accounts for over 80 per cent of the domestic coal production missed its revised productiontarget as it achieved only 435.84 million tonnes (MT) of coal in fiscal 2011-12 against 447 MT.
In order to meet fuel needs of power companies, the government has recently issued a Presidentialdirective to CIL asking it to enter into fuel supply pacts with power producers for minimum assured supply.
The advisory, issued on April 19, is crucial, as the power ministry has proposed capacity addition of 75,000 Mw during the 12th Plan. Of this, about 55 per cent is expected to be coal-based. CEA’s advisory is also important, as Coal Minister Sriprakash Jaiswal had recently estimated India’s coal imports by the end of 12th Plan at 250 million tonnes.
The CEA, therefore, said, “Coal quality is a major input parameter for the design of a power plant boiler. Large coal quality variations may not be readily accommodated in a plant, and may lead to loss in efficiency. It is thus considered prudent that all future coal-fired thermal power stations to be set up in the country shall be designed to enable the use of a higher percentage of imported/high GCV coal, as may be required.”
A power ministry official, speaking on the condition of anonymity, confirmed the CEA advisory, saying a few power generation utilities had already carried out necessary changes and these had planned to blend more imported coal during expansion.
According to the CEA, the gap between the demand and the indigenous supply of coal was likely to increase, as these supplies unable were unable keep pace with capacity addition in the power sector. Coal imports would be required to bridge the shortfall, especially in supplies to stations designed on indigenous-coal standards. Stations designed primarily for imported coal would also be required.
The CEA’s advisory was based on a report of a group that studied the range of blending imported coal with domestic coal. The group, headed by Suresh Chander, had given its report to the government in April 2011.
In its report, the group had said a large number of Indian power utilities were already using imported coal for blending and generally, stations blended 10-15 per cent of imported coal by weight.
Govt working on PPP model for CIL mines
Facing criticism for its inability to meet the growing demand of coal, the government is working on a proposal under which CIL would engage private sector companies to undertake mining on behalf of the PSU.
The proposal to involve private sector under the PPP mode, sources said, was recently discussed between Planning Commission Deputy Chairperson Dr Montek Singh Ahluwalia and Coal Secretary Alok Perti.
The Coal Ministry, they said, is considering a model agreement - mining, development and operations (MDO) - under which private sector entity would undertake mining operations, while the ownership and sale of coal would rest with Coal India (CIL).
Dr Ahluwalia, in a letter to Coal Minister Sriprakash Jaiswal has recently said, “It should be possible to expand coal mining operations rapidly through a PPP model that can enable a fair and transparent framework based on competitive bidding.”
CIL, in which government has a majority stake, has already done some preliminary work on the new model.
Ahluwalia wants the Ministry to prepare a model concession agreement which could be put up before the inter-ministerial group and the Cabinet for approval.CIL which accounts for over 80 per cent of the domestic coal production missed its revised productiontarget as it achieved only 435.84 million tonnes (MT) of coal in fiscal 2011-12 against 447 MT.
In order to meet fuel needs of power companies, the government has recently issued a Presidentialdirective to CIL asking it to enter into fuel supply pacts with power producers for minimum assured supply.
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