Diverting e-auction coal to meet fuel demand is possible: CIL

Coal India on Tuesday said it is possible to divert coal meant for e-auction for meeting the demand of the power plants facing shortage of the dry fuel.

“It’s possible,” the new Coal India Chairman and Managing Director S Narsing Rao said when asked whether CIL would consider diverting coal from e-auction to meet short-term coal crisis faced by power plants.

Some power plants in the country are facing critical coal shortage for plants and there have also been reports that generation had been cut due to shortage of the fuel.

CIL Director (Technical) N Kumar said, “We are supplying coal based on 85 per cent PLF (Plant Load Factor) and units are producing at higher PLF and that is creating additional shortage.”

Rao hinted that companies have to learn to live with the situation given the overall shortage of coal in the country.

In 2011-12, CIL had supplied 311 million tonnes to power sector and in 2012-13 the commitment will increase up to 360 million tonne following new supply agreements.

Of about 48 FSAs required to be signed under the government directive, 8-10 contracts have been signed till today with both PSUs and private companies, Rao said.
Source: Daily Pioneer

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