State-owned Coal India has been forced to temporarily stop production at several mines and suspend shifts in others, as there are no takers for their stock due to surplus position at all thermal power plants in the country.
The coal stocks now stand at 84 million tonnes, with 48 million tonnes at various Coal India mines and another 36 million tonnes at power plants.
“We have been forced to temporarily stop production at several mines, mostly open cast. The worst hit are the mines under subsidiaries of South Eastern Coalfields and Eastern Coalfields, although all the producing companies have been affected, some severely.
“The power companies are not in a position to take any additional coal and we are being requested, both officially and unofficially, to cut supplies, which has prompted us to scale down production at several other mines apart from the ones where we have stopped production temporarily,” said a senior official on condition of anonymity.
Coal India is being forced to cut or stop production because there's a limit on the volume of coal that can be stocked at any single location. The stock is so huge at some mines, dumpers that carry coal from pits to stockyards cannot move within the mine area. Large stocks of coal also run the risk of catching fire.
The irony, however, is that India is faced with surplus coal situation despite some 57,000 mw of thermal units starved of coal since they do not have any supply contract with Coal India.The National Coal Distribution Policy (NCDP) stipulates that Coal India cannot supply to power plants without signing any fuel supply agreement.
The only way out now for Coal India is to supply more than 65% of the annual contracted quantity to power plants which have fuel supply agreements.
Coal India Ltd offers 14 mt under special e-auction
State-owned Coal India has offered 14 million tonnes of fossil fuel under special e-auction to both power and non-power sectors in order to facilitate liquidation of pit-head stock, Parliament has been informed on Thursday.
"To facilitate liquidation of pit head coal stock, CIL has offered 10 mt (million tonnes) and 4 mt of coal under special e-auction to power sector and non-power sector consumers respectively, in line with directions of government," Coal and Power Minister Piyush Goyal informed the Lok Sabha in a written reply.
He said that supply of thermal coal to the power sector by Coal India (CIL) was 385.61 mt against a target of 405 mt in the last fiscal. During April-January 2015-16, supply to power plants by CIL was 337.01 mt (provisional) against the target of 352.29 mt. CIL, he said, is able to meet the current demand and thermal power plants have comfortable coal stock positions of 36 mt equivalent of 24 days requirement as on February 2. "As on February 1, 2016, the coal stock was 42.25 mt compared to 39.05 (provisional) mt as on February 1, 2015.” he said.
Govt garners Rs 726 crore from auction of 31 coal blocks
Government has generated a revenue of Rs 726 crore from the auction of 31 coal blocks, Parliament has been informed. "The actual revenue generated till January 2016 only from auction of 31 coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015, is Rs 7,26,32,97,858 (provisional)," Coal Minister Piyush Goyal said in the Lok Sabha. The minister further said "the estimated revenue which would accrue to the coal bearing states concerned from the allotment of 43 coal mines and auction of 31 coal mines during the life of mine/lease period is Rs 1,96,698 crore and Rs 1,48,276 crore respectively." Goyal further said the fourth round of coal block auctions for the non-regulated sector was cancelled in view of the prevalent market conditions, which included sharp decline in e-auction price of coal from Coal India as well as the international FOB price of non-coking coal, among other factors.
The coal stocks now stand at 84 million tonnes, with 48 million tonnes at various Coal India mines and another 36 million tonnes at power plants.
“We have been forced to temporarily stop production at several mines, mostly open cast. The worst hit are the mines under subsidiaries of South Eastern Coalfields and Eastern Coalfields, although all the producing companies have been affected, some severely.
“The power companies are not in a position to take any additional coal and we are being requested, both officially and unofficially, to cut supplies, which has prompted us to scale down production at several other mines apart from the ones where we have stopped production temporarily,” said a senior official on condition of anonymity.
Coal India is being forced to cut or stop production because there's a limit on the volume of coal that can be stocked at any single location. The stock is so huge at some mines, dumpers that carry coal from pits to stockyards cannot move within the mine area. Large stocks of coal also run the risk of catching fire.
The irony, however, is that India is faced with surplus coal situation despite some 57,000 mw of thermal units starved of coal since they do not have any supply contract with Coal India.The National Coal Distribution Policy (NCDP) stipulates that Coal India cannot supply to power plants without signing any fuel supply agreement.
The only way out now for Coal India is to supply more than 65% of the annual contracted quantity to power plants which have fuel supply agreements.
Coal India Ltd offers 14 mt under special e-auction
State-owned Coal India has offered 14 million tonnes of fossil fuel under special e-auction to both power and non-power sectors in order to facilitate liquidation of pit-head stock, Parliament has been informed on Thursday.
"To facilitate liquidation of pit head coal stock, CIL has offered 10 mt (million tonnes) and 4 mt of coal under special e-auction to power sector and non-power sector consumers respectively, in line with directions of government," Coal and Power Minister Piyush Goyal informed the Lok Sabha in a written reply.
He said that supply of thermal coal to the power sector by Coal India (CIL) was 385.61 mt against a target of 405 mt in the last fiscal. During April-January 2015-16, supply to power plants by CIL was 337.01 mt (provisional) against the target of 352.29 mt. CIL, he said, is able to meet the current demand and thermal power plants have comfortable coal stock positions of 36 mt equivalent of 24 days requirement as on February 2. "As on February 1, 2016, the coal stock was 42.25 mt compared to 39.05 (provisional) mt as on February 1, 2015.” he said.
Govt garners Rs 726 crore from auction of 31 coal blocks
Government has generated a revenue of Rs 726 crore from the auction of 31 coal blocks, Parliament has been informed. "The actual revenue generated till January 2016 only from auction of 31 coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015, is Rs 7,26,32,97,858 (provisional)," Coal Minister Piyush Goyal said in the Lok Sabha. The minister further said "the estimated revenue which would accrue to the coal bearing states concerned from the allotment of 43 coal mines and auction of 31 coal mines during the life of mine/lease period is Rs 1,96,698 crore and Rs 1,48,276 crore respectively." Goyal further said the fourth round of coal block auctions for the non-regulated sector was cancelled in view of the prevalent market conditions, which included sharp decline in e-auction price of coal from Coal India as well as the international FOB price of non-coking coal, among other factors.
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