Fuel shortage versus govt efforts

Time has come to reduce the dependence on imported coal. Significant reforms from govt side are needed in the coal sector to minimise the demand-supply gap
Fuel shortageFuel shortage in the country is something that does not need any introduction. It is forcing the government to face many challenges. Scarcity of fuel is taking a toll in meeting the countrys power requirement. It has been reported that out of the total capacity addition in the 12th Five-Year plan (2012-17), a huge 76000 MW is impacted somehow due to shortage in fuel supply. More than 50000 MW of coal-fired power generation capacity and 24000 MW of gasgrid connected power generation capacity are facing challenges due to nonavailability of fuel.
A shortage of fuel needed to fire power plants and expectations of a deficient monsoon leading to lower hydro electricity generation are some of the major issues. If there happens a lower rainfall, it would also cause a drop in hydel generation, resulting in higher demand for thermal power. This would increase the requirement of coal, which fires most generation plants and is not produced in enough quantities to meet demand in the country. According to official data, Indias coal imports rose to 82.5 million tonnes till September end of the previous financial year from 69 million tonnes in 2010-11.
Coal sector reforms which will lower the need for imported fuel and reduce cost of generation for the power sector are needed. Distribution reforms are another key concern for the sector. The government is supposed to take some fundamental steps to improve the distribution side of business.
Importing liquefied natural gas is also not always a viable option. The shortage of natural gas in the country, caused by lower output at the KG-D6 block in the Bay of Bengal, has left plants with a combined capacity of 8000 MW without fuel. The government will also have to deal with stranded gas projects that are stuck for lack of gas supply.
Its criticalRecently it is also found that at least three state-owned thermal power plants in Uttar Pradesh have been running short of coal supply. The condition is so critical that the power plants may be forced to shut down if not replenished with a fresh stock. In search of solution to overcome the issue, state government had asked the central government to provide coal for a backup of coal.
Currently around 20 coal-fired plants in the country are running low on fuel stock and are practically making do with daily supplies. The CEA, which monitors the power sector, has said 38 power stations have less than a weeks stock and 20 units less than four days. But the plants are getting daily fuel supplies. CEA stipulates power plants to stock coal for seven days. Any stock less than this is categorises as critical.
Power plants have traditionally faced this problem and only some units are able to maintain adequate stocks. The problem arises due to Coal Indias inability to meet the targets for loading rail wagons, poor quality of coal and unavailability of wagons or locomotives as well as traffic congestion in key routes.
The power ministry has asked coal-fired plants to defer any maintenance shutdown till October to meet an anticipated rise in demand due to poor monsoon. It has also made plans to ensure the units have adequate coal to keep spinning.

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