To keep away from summer time coal crunch, NTPC seems to be to construct buffer inventory

One of India’s largest thermal energy producers, state-owned NTPC has floated tenders to obtain over 14 million tonnes of imported coal regardless of elevated worldwide costs as producers anticipate a possible scarcity of home coal in the summertime. Thermal energy producers have persistently raised the difficulty of uncertainty of supply of coal and are unlikely to have the ability to construct up shares to normative ranges by March in accordance with authorities officers.
Low coal shares at thermal energy crops had compelled many states together with Uttar Pradesh, Rajasthan and Punjab to impose load shedding in October, as states rushed to energy exchanges paying three-four instances regular charges for energy as a consequence of insufficient provide.
NTPC has floated tenders to obtain 14.5 million tonnes of imported coal for numerous thermal energy stations anticipating a shortfall in provide of home coal.
“We expect that there may be a shortfall (of domestic coal) and we need to keep a buffer stock of coal,” mentioned an NTPC official who didn’t want to be named. The official added that points round availability of home coal for the summer time season had cropped up as early as March in 2021.

The authorities had in October permitted energy technology corporations that use home coal to import upto 10 per cent of their coal necessities amid the coal scarcity The value of Indonesian coal is at present about $160 per tonne up from about $75 per tonne in January 2021.
While the ministry for energy has requested the Indian railways to prioritise coal deliveries to thermal energy crops to construct up coal stock, they’re nonetheless unlikely to have the ability to construct up inventory to achieve a focused stage of 58 million tonnes by March, in accordance with authorities officers. Post the coal scarcity at thermal energy crops in October, the centre revised stocking norms upwards to require thermal crops to keep up increased shares between February and June previous to the monsoon interval when coal shares are likely to fall.
About 58 of 180 thermal energy crops which can be monitored day by day had important ranges of inventory on January 20, in accordance with information from the nationwide energy portal. The whole inventory of coal at these thermal energy crops stood at 24.6 million tonnes.
Power producers notice that well timed availability of coal remains to be unsure regardless of assurances from Coal India and the coal ministry and have known as for larger accountability for non-delivery of coal.

“The key issue is the uncertainty that power producers face on the quantum and timing of coal availability and its transportation through rail. We have been asking for accountability in the supply of coal and its transportation through tripartite agreements between power producers, Coal India and the Indian Railways,” mentioned Ashok Khurana, Director General of the Association of Power Producers.
Khurana added that the system of provide on a “best efforts basis without any accountability has not proved effective” and {that a} “blame game starts up” between the Indian railways and Coal India when coal shortages happen.