Financial Daily from THE HINDU group of publications
Friday, Jul 29, 2005

Port Info

Group Sites

Industry & Economy - Power

`Fuel shortage will ease only in 2008-09'

Our Bureau

Mr R.V. Shahi (left), Secretary, Ministry of Power, with Mr C.P. Jain, Chairman-cum-Managing Director, NTPC, at a seminar on `Power sector: Strategies for mitigating fuel crisis' in the Capital on Thursday. — Ramesh Sharma

New Delhi , July 28

THE fuel crunch faced by power utilities is likely to continue for two to three years, with supplies of both coal and gas falling far short of demand. "The coal shortage is not going to get better over the next couple of years. By 2008-09, we think the situation will improve," the Power Secretary, Mr R.V. Shahi, said at a CII seminar here on Thursday.

To meet the deficit in domestic production, power utilities plan to import about 20 million tonnes of coal during the current fiscal, 40 per cent more than this year's import of 14 mt.

Mr Shahi said that besides imports, there was need to step up domestic production also. He said the Power Ministry has taken up the matter with the Coal Ministry, which has promised to expedite approvals for coalmines.

Mr Shahi said about 24 coal projects were linked to power projects in the Tenth Five-Year Plan, but only six received all the clearances.

The process has been speeded up and 18 other projects would be cleared shortly, he added. He said power utilities also faced acute gas shortage, with many stations running at 60 per cent Plant Load Factor, as against a national average of over 75 per cent PLF.

The current gas production is about 90 million standard cubic meter per day (mscmd) and there was shortage of 18 mscmd.

He said production from captive coalmines, allotted to power producers or state electricity boards, would begin middle of next year.

Power major National Thermal Power Corporation Ltd (NTPC), which has also been allotted one block in Jharkhand, will begin production only in July 2007 with a target of 10 mt of coal.

This fiscal, power majors NTPC, Reliance Energy Ltd (REL), state electricity boards and private firms are expected to import over 13.25 mt of coal to tide over the crisis.

At present, as many as six thermal power stations are running with super critical coal stock of less than four days, and 16 other plants have critical stocks for less than a week.

NTPC will import 3.98 mt of coal and has mandated MMTC. Other companies that would import coal include Maharashtra State Electricity Board (1.38 mt), Tamil Nadu Electricity Board (1.56 mt), REL (0.42 mt) and Punjab SEB (0.5 mt).

The country requires about 18 mt of coal stocks at any given time for its 75 thermal power plants.

  • All India coal demand (in 2006-07): 473.18 million tonnes.

  • Indigenous availability projected at 431.50 m.t.

  • The gap is 41.68 m.t., according to the Minister of State for Coal & Mines, Dr Dasari Narayana Rao.

    Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

  • Stories in this Section
    Mumbai High: Govt begins operation to counter pollution

    Heavy rains forecast in Gujarat
    Fresh `low' over Bay likely to extend rain cover to entire country
    Kalam presents 10-point agenda for Kerala
    Dharam Singh woos AP entrepreneurs
    Engg exports may double in 5 yrs
    AP corpn to build waste treatment plant in Kochi
    'Commission will settle tax disputes faster'
    Govt may not issue directions to refiners on kerosene output
    US pharma lobby seeks changes in Patents Act
    `Fuel shortage will ease only in 2008-09'
    AP may cut power tariff for industrial users
    `VAT swells States' tax revenue kitty'
    New AP stamp duty norms from Aug 1
    Investments in textiles sector
    `Real estate prices may go up further in Chennai'
    Building designers urged to adopt holistic approach
    European central banks' gold sales target within reach
    Reverse osmosis plant: CM's help sought for getting subsidy
    Kalam outlines agenda for Indian space missions
    Bengal, Indonesia co sign pact for two-wheeler unit
    Blood donation drive
    Hallowed stuff
    Meet on emotional intelligence
    Check duty
    No extension for filing of returns
    Airlines asked to operate more flights to Mumbai
    Insurance cos bracing for flood of claims
    Mumbai limping back to normal; over 300 dead in Maharashtra

    The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
    Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

    Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line