To repair coal crunch, captive mines’ 50% output get sale nod

IN A transfer anticipated to assist tackle the continuing coal scarcity on the nation’s thermal energy vegetation, the federal government on Tuesday notified guidelines permitting the sale of as much as 50 per cent of the annual coal and lignite output of captive mines.
The transfer to amend the Mineral Concession Rules, 1960 is anticipated to learn operators of 100 coal and lignite blocks, with an annual manufacturing capability of 500 tonnes. Captive mines are operated by end-users of coal, together with metal and energy sector corporations. A authorities launch stated the amended guidelines “paved the way for releasing of additional coal in the market by greater utilisation of mining capacities of captive coal and lignite blocks, which were being only partly utilised, owing to limited production of coal for meeting their captive needs.”
Lessees of such captive mines can be required to pay further premiums to state governments above those paid for coal that they promote after assembly their very own necessities. The transfer is anticipated to inspire lessees of captive mines to spice up manufacturing past their very own necessities.
Thermal vegetation are presently coping with a coal scarcity resulting from a pointy uptick in energy demand, decrease ranges of coal manufacturing and fewer despatches resulting from disruptions through the monsoon, and low accumulation of inventory within the April-June interval.
As many as 17 thermal energy vegetation, with a technology capability of 21,325 MW, had zero days of coal inventory as of October 3. Another 40 vegetation with a technology capability of 52,510 MW have shares of 1 or two days. On common, the shares of coal obtainable with thermal energy vegetation are enough for under 4 days of operations, in comparison with really helpful inventory stage of 14 days.

DefinedTo assist increase manufacturingLessees of captive mines promoting coal should pay the state further premiums over what they pay for coal they use themselves. The transfer is anticipated to inspire lessees of captive mines to spice up manufacturing past their very own necessities.

The scarcity was seen to be extra acute in non-pithead vegetation or those that aren’t positioned near coal mines, with such vegetation accounting for 97 of the 107 vegetation seen to have essential ranges of inventory i.e below 8 days. As a lot as 131 GW of the overall 165 GW of capability for which shares are monitored every day is presently dealing with “critical” or “super critical” ranges of coal stock.

The share of coal-based energy within the electrical energy combine has risen to 66.4 per cent from 61.9 per cent in 2019, resulting in an 18 per cent enhance in coal consumption in August and September, as in opposition to the corresponding interval in 2019.
A complete of 263 rakes of coal had been dispatched from coal mines on Monday, up from 248 on Sunday, with the quantity set to extend additional, in response to a authorities launch. Coal India has elevated offtake within the September quarter by 9.7 per cent to 147.3 million tonnes (mt), up from 134.3 mt within the year-ago interval with a view to assist tackle the scarcity.