Question : Shortage of Fuel

(a) whether the shortage/non-availability of fuel for power generation plants/stations and its adverse impact on power generation of various States still persists in the country despite several measures taken by the Government in this regard;

(b) if so, the details thereof and the reasons therefor along with the fuel supplied o power plants/stations across the country during each of the last three years and the current year;

(c) whether there are a number of power plants/stations which are on the verge of closure due to high cost of fuel in the country;

(d) if so, the details thereof, State-wise along with the reaction of the Government thereto;

(e) whether the Government proposes to provide cheap fuel or financial assistance to such plants/stations for their survival in the country and if so, the details thereof; and

(f) the other steps taken/being taken by the Government to ensure timely uninterrupted fuel supply at affordable rates to the power generation plants/ stations across the country?

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND
NEW & RENEWABLE ENERGY

( SHRI R. K. SINGH )

(a) & (b) : Due to several measures taken by the Government, the availability of coal in power plants have improved. The overall coal stock in the coal based power plants have increased from 7.3 Million Tonnes (MT) as on 19.10.2017 to 12.9 MT as on 25.12.2017.

The drop in coal stock was mainly during the 2nd quarter of 2017-18 because of heavy rains during monsoon in the mining area which affected coal production, loading at mines and transportation of coal. Further, due to reduced generation from hydro, wind and nuclear power station, the generation from coal based power station had to be increased.

The receipt of coal by the coal based power plants during the last three years and the current year are given at Annex-I.

The availability of domestic gas for power sector is very low as availability of gas from KG D6 field has reduced drastically. The details of the gas allotted and supplied/ consumed during the last 3 years and the current year (Upto November, 2017) is given at Annex-II.

(c) to (e) : Generation is a delicensed activity as per Electricity Act. 2003. The operation of a power station is done based on the merit order despatch by the Discoms so that the over all cost of power purchase is less.

Further, to reduce the cost of coal to power station, the Government has introduced “flexibility in utilization of domestic coal for reducing the cost of power generation” where the State/Central Gencos would have flexibility to utilize their coal in an efficient and cost effective manner in their own power plants as well as by transferring coal to other State/Central Gencos Power plants. This would lead to availability of cheaper power to discoms.

(f) : The Union Government has taken the following steps to ensure timely and uninterrupted fuel supply at affordable rates to the power plants:

(i) The availability of coal is being regularly monitored closely to ensure that generation of power plant is not affected due to shortage of coal.

(ii) Coal blocks have been allotted to central/ state power utilities to improve domestic coal availability.

(iii) The Government has introduced a scheme SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India)-2017, to provide coal linkages to the power plants which do not have any linkage.

(iv) Awarding gas blocks for Exploration & Production activities in various sedimentary basins of the country, and formulation of Hydrocarbon Exploration and Licensing Policy (HELP) in March, 2016.

(v) Policy for marketing freedom for gas produced from Deepwater & Ultra Deepwater areas.

(vi) The Government has introduced flexibility in utilization of domestic coal amongst power generating stations to reduce the cost of power generation. The State/Central Gencos would have flexibility to utilize their coal in optimum and cost effective manner in their own power plants as well as by transferring coal to other State/Central Gencos Power plants for generation of cheaper power.

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