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Coal Supply Still one of the Major Challenges for the Power Industry

May 16, 2018 05:17 PM

Tagged Sector(s) : Coal

Coal as per standards is either stored in dead storage (generally 40 days coal supply) which serves as coal supply in case of coal supply bottleneck or to the live storage(8 hours coal supply) in the raw coal bunker in the boiler house. But nowadays, Generators nods to NO for keeping 40 days of coal supply and have constrained storage to an average of 10 days. Being strucken with untied power, generators have restrained them to a low PLF, requiring less coal. Constrained cashflows and unhonoured FSA has cut down their deep pockets and are shying up to stockpile coal.

As per CEA reports demand is likely to spur in upcoming 2 years driving more consumption of coal. The government’s push for rural electrification is also expected to add to power demand that will exert supply pressure on coal. CIL is in a position to supply coal to strucken plants but logistic issues have bottlenecked supplies. Government should catalyse execution of critical railway projects to enhance daily rakes supplies else demand for coal would rise and supplies are expected to be tight.   

Article By:
Amit Sharma

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