‘Constraints kill power plant’s coal appetite’

For power generators,it is a Hobson’s choice. While domestic coal availability is tapering off,there are technical limitations to blending high-calorific imported coal in the typical boilers used in domestic projects. So,without adequate domestic supplies,stranded capacity is clearly on the cards.

“Any further increase in the coal import requirements for power generation would face major difficulties in reaching the generation centers,thus leading to stranded assets and sub-optimal performance,” the Mercados study has said. The study suggests — augmenting domestic coal production,developing coal storage facilities at the port premises and an efficient system of coal evacuation from port site,setting up coastal coal preparation hubs,identifying alternative railway routes to release congestion on critical sections,rationalisation in routing of coal to the power plant clusters and implementing coal pooling as necessary actions to make large scale imports a reality. Progress on a slew of important and identified railway links,such as Tori–Shivpuri-Hazaribagh,Bhupdevpur–Gharghoda–Dharmajaygarh-Korba and Gopalpur–Manoharpur,if taken up on a priority basis,can help significantly in increasing coal evacuation,the study estimates.

The Association of Power Producers,which commissioned the study,has said in view of the domestic coal deficit and the constraints likely to be faced in bulk import of coal,enhancing domestic coal availability is an imperative for our energy security and will obviate foreign exchange payouts and help to reduce the current account deficit.

Overall domestic coal shortage is expected to be around 216 MT by the end of Twelfth plan period against the requirement of 878 MT.