Power generation sector should have preference for coal supply, power ministry

Power generation sector should have preference for coal supply, power ministryThe power minister has said that the power generation sector in the country should get preferential treatment during spot market sales of coal.

The move follows ministry's requests to ban e-auction sales of coal in order to allow long-term consumers in the power sector to meet their requirements. Most thermal power plasnts are now operating on a depleting reserve of coal and they might have to reduce generation of even close without additional supplies.

Thermal plans at Kolaghat, Bakreshwar, Kahalgaon, Tuticorin, Khaparkheda, Panipat and Badarpur have only a day's stock with them and about forty percent are working with only seven days stocks. . Coal fuels 86 power plants in the country and results in the generation of 85,477 MW or 64% of the total power supply.

Power secretary P Uma Shankar has said that e-auctions should only be allowed after the coal producers meet the requirement of the power sector. He also pointed out that the coal ministry had earlier assured committed supply for power projects through e-auction with a condition that coal will have to be collected from the pithead of Coal India mines.