Question : Stressed Power Plants

(a) whether many State power plants are stressed power plants requiring working capital to buy coal and start generating power in the country;

(b) if so, the details thereof;

(c) whether such power plants would be offered short-term loans from Power Finance Corporation and REC Ltd.;

(d) if so, the details thereof;

(e) the number of State power plants whose generating capacity has reduced due to shortage of supply of coal along with the steps taken by the Government to provide fuel; and

(f) whether the power plants are generating power at their full capacity to meet energy demand and if so, the details thereof?

Answer given by the minister

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) & (b) : State Power Generating Companies (GENCOs) are generally facing delays in realization of receivables from Distribution Companies (DISCOMs) which impair their ability to service debt in a timely manner that leads to exhaustion of working capital. Depletion of working capital in turn affects Gencos ability to purchase coal.
(c) & (d) : The details of State sector generation companies which approached Rural Electrification Corporation Limited (REC) for working capital loan for purchase of coal is given below:

Sl. No. State Utility Loan Amount sanctioned by REC (Rs. Cr.)


1. Maharashtra Maharashtra State Power Generation Company Limited (MSPGCL) 1800

2. Rajasthan Rajasthan RajyaVidyutUtpadan Nigam Limited (RRVUNL) 500
3. Punjab Punjab State Power Corporation Limited (PSPCL) 400
4. Haryana Haryana Power Generation Corporation Limited (HPGCL) 500
5. Karnataka Karnataka Power Corporation Limited (KPCL) 500
TOTAL 3700

Decision to extend any loans is taken by the lenders as per their commercial wisdom through appropriate due diligence on case to case basis.

(e) : The coal stock available with the Thermal Power Plants (TPPs) is monitored on daily basis by CEA. As on 31.03.2022, the coal stock was 25.6 Million Tonnes (MT) and has increased to 28.4 MT as on 17.07.2022, which is about 50% of the normative coal stock required to be maintained by the TPPs. The coal stock available as on 17.07.2022 is sufficient to run these power plants for an average of 10 days at 85% PLF.
Government has taken following steps to ensure smooth coal supply to power plants for unhindered power generation:-

(i) An Inter-Ministerial Sub-Group comprising of representatives from Ministry of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants.

(ii) As per the decision taken in the meeting held under the Chairmanship of Cabinet Secretary on Augmentation of coal supply and power generation capacity, a Secretary level Inter Ministerial committee has been set up to ensure that the medium and long term requirements of coal are met. The IMC comprises of Chairman Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forests and Climate Change as members and Secretary, Ministry of Power as convenor. Further, CEA provides technical support to the IMC.

(iii) Ministry of Power vide OM dated 28.04.2022 has advised power plants to import coal for blending purposes during 2022-23.

(iv) CIL has allocated about 16 MT coal on Road cum Rail (RCR) mode to TPPs.
(v) Ministry of Railways has issued order to give preference to Power Sector for loading of coal from Good Shed Siding (GSS) and Private Washery.

(f) : The Plant Load Factor (PLF) of Coal/lignite based power plants of capacity 25 MW and above during the year 2021-22 was 58.87%. In 2022-23, the demand for electricity has been increased and power plants are generating the electricity as per schedule given to them. The PLF for Coal/lignite based power plants in FY 2022-23 upto June- 2022 is around 69.5 %.
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