Question : DEMAND AND SUPPLY OF COAL



(a) the details of the demand for coal made by the power plants and the quantum of coal allocated against thereto during the last three years and the current year;

(b) whether the demands so made by the power companies have been met;

(c) if not, the reasons therefor;and

(d) the steps taken by the Government to supply of coal as per demand of the power plants?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF COAL(SHRI SANTOSH BAGRODIA)

(a): The Planning Commission assesses the demand of coal of different sectors,including power utilities.Based on such projected demand,supply plan is formulated by Ministry of Coal/Planning Commission.These assessments of demand are made on sectoral basis,not unit-wise.The demand vis-à-vis supply plan for power sector,as formulated in the Annual Plan is given below:-


(figures in million tonnes)

2005-06 2006-07 2007-08 2008-09

Assessed Demand 307.16 322.00 330.00 373.00#

Indigenous supply Plan

Coal India Limited 255.65 272.63 279.40 292.93

(CIL)

Singareni 25.10 27.39 27.75 28.88 Collieries Company Limited (SCCL)

Other(Captive 7.08 7.33 12.08 14.88 sources of TPSs)

Total 287.83 307.35 319.23 336.69

Gap between demand 19.33 14.65 10.77 36.31 & Supply Plan

# The demand for current fiscal includes 8 million tonnes of coal for stock building.

(b)&(c): There had been gaps between the assessed demand of power utilities and indigenous supply plan and therefore,the Annual Plan envisages import of coal by various sectors, including power utilities.By and large,Coal India Limited(CIL) and Singareni Collieries Company Limited (SCCL) have been able to meet the Annual Action Plan target for supply of coal to power utilities.However,due to lesser materialization as against quarterly planned movement of coal on account of various factors including loading/unloading and movement constraints, short-term production constraints in the linked source,increase in Plant Load Factor(PLF), increase in coal consumption per output and lesser materialization of targeted import by power utilities,there has been overall depletion of coal stocks at the power plants.

(d): Keeping in view indigenous availability of coal,Ministry of Power has advised power utilities to import 20 million tonnes of coal during 2008-09.Further,during the meeting convened in Planning Commission in September,2008,having regard to projected demand of power utilities and supply of coal from various sources including planned import,it was decided that in order to meet the power generation target and to have some cushion in coal supplies, additional 11 million tonnes need to be imported.