Coal India ramps up output, supplies power plants as rains recede | Today’s news
New Delhi: State-run Coal India Ltd (CIL) on Wednesday said its coal output rose to 1.91 million tonnes (mt) on September 8, 40% above the daily average for the first three days of the month, driven by a 67% rise in output by its subsidiary Northern Coalfields Ltd (NCL).
Shipments from Coal India’s mines to the power sector rose 27% to 1.74 million tonnes on September 8, from an average of 1.37 million tonnes a day in the first three days of the month, CIL said in a statement. This increase in coal production and supply to power plants comes after reports indicated that some 58 thermal power plants are operating with critically low coal supplies, potentially affecting power generation.
NCL produced 300,000 tonnes of coal on September 8, compared to a daily average of 180,000 tonnes in the first three days of September, showing a marked improvement as rains receded.
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NCL’s operations at its mines in Uttar Pradesh and Madhya Pradesh were among the worst hit due to the recent rains. About 87% of NCL’s total coal supply goes to the power sector, with the majority going to power plants in Uttar Pradesh, Madhya Pradesh and Rajasthan. In this financial year, NCL’s total coal production stood at 51.43 million tonnes, while its stockpiles stood at 55 million tonnes till September 8, marking a significant recovery from operational problems posed by heavy rains.
“As the monsoon loosens its grip, Northern Coalfields Limited (NCL), one of the major coal-producing subsidiaries of Coal India Limited (CIL), is ramping up the pace at its mines, with coal production up 67% and supply up 75% as of September 8 compared to the September 1-3, 2002 average,” Co2 said in a statement.
“With the receding monsoon, NCL is further intensifying efforts to maximize production, enhance evacuation by making optimal use of available resources. It is focused on converting improved mine conditions into higher production, faster dispatch and more reliable coal supply,” the company said, adding that with improved mine availability, NCL is able to move people, machinery and coal more efficiently. Prioritizing the restoration of internal roads improved the movement of coal to coal works and railway sidings, while continuous drainage helped to reopen mine areas affected by water accumulation.
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It said that with the receding rains, coal supplies to power plants are gradually moving towards pre-monsoon levels.
On Tuesday, Union Coal Minister G Kishan Reddy said more than 123 million tonnes of coal is available in mines, transit and thermal power plants, enough to meet power demand for 51 days.
Reddy’s comments came amid concerns that several thermal power plants across the country are running on critically low coal stocks, fueling fears of power shortages.
He said mining and coal supplies will improve when the rains stop. Speaking to reporters on Tuesday, the minister said there were about 100 million tonnes of coal in pits or in transit, while thermal power plants had about 23.7 million tonnes.
Coal mines and coal-fired power plants are under further pressure this year as a weak monsoon and El Nino conditions have boosted energy demand from both agriculture and households. While farmers use pumps for irrigation during light rains, the use of air conditioners in homes and commercial establishments has also increased in wet weather. In addition, hydropower, which usually compensates for the slowdown in coal-fired power generation, also saw a decline due to a weaker monsoon.
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India’s power deficit has remained high in recent days, with shortages particularly pronounced in northern and western regions, according to data from the Grid Controller of India. The deficit stood at 19.57 million units on Sunday, while it crossed 28 million units on September 5.
