‘Captive Power Plants getting insufficient coal’

at 8:07 pm

New Delhi: India’s Captive Power Plant (CPP) industry is getting insufficient coal rake supplies at the levels of 40-50% and if augmentation is not done immediately, there would be irrevocable collateral damage to these national assets.

This has been highlighted by the Indian Captive Power Producers Association (ICPPA) in a recent representation to the Union Ministry of Coal, Railways and Power with a request for urgent support for normalizing the coal supplies to CPP-based industries.

In the last few months, the supplies meant for CPPs & industries have been either stopped or significantly curtailed for diversion of these to the power sector, which has led to a perilous situation for other Coal-based Power Generators (CPP), adversely impacting their industrial operations, the ICPPA said.

“The decision of Coal diversion, left CPP-dependent industry with no time to devise mitigation plans for sustainable operations, forcing CPPs to curtail generation or come to a standstill,” it said in a statement.

On an average, Captive Power Plant-based industries are getting less than 50% of the Coal against secured linkages and CIL auctions, the Association said.

Importantly, curtailment to CPP is continuing despite the Power Sector having come out of the coal crisis, it said.

With the coordinated efforts of all ministries, the situation for State Power Sector has improved to current levels of 10 days, the ICPPA said.

However, the CPP industry consumers are still getting overall coal supplies at just 40% to 50% levels, leaving them struggling to get uninterrupted coal supplies for continued operations, it said.

Also, the Coal -Rake dispatch is at a much lower levels than their requirement booked through linkage and auctions, it added.

The Aluminium industry operations are one of the most severely impacted with the price being on a rise recently due to the global shortage, according to the Association.

With the coal crisis impacting the industry, the scarcity will lead to further increase in rates. Being a metal of strategic importance, the country cannot afford the shock of Aluminium shortage, it said.

Any power outage in Aluminium plants will lead to catastrophic impact & complete shutdown which will take minimum 12 Months of recovery, resulting in job loss of more than 8 lakh people, the ICPPA said.

Therefore, it is critical to maintain continuous Coal supplies to the Aluminium sector for production of captive power as any shortfall will jeopardize investments of Rs. 1.4 Lakh Crore including debt of Rs. 1 Lakh Crores, it said.

“Keeping the above in mind, The Indian Captive Power Producers Association has requested the ministry’s immediate intervention for normalizing 100% Coal rakes supplies to CPP industry and help them to partner the economic development of the nation,” it said.