New Delhi: The government has allowed the Tata Group and Adani to sell electricity from idle capacity at their coal import factory in Gujarat on energy exchanges for a month to check the surge in power prices triggered by coal shortages in 73 stations.
But even when the government grappled with a crisis in power plants, aluminum producers have joined the choir on the shortage of fuel in their prisoner generation units.
In a letter to relevant officials, the Indian aluminum association has accused “drastic restrictions” of the supply contracted by coal India Ltd – maybe because they were transferred to the main generation station.
Meanwhile, officials said orders based on the provisions of the Electricity Law would be issued, requesting the strength of Tata and Adani to dismiss the capacity of 4,400 MW to their Mungra plant applicant because the buyer’s country refused to compensate for the increase in imported coal costs.
Permission to sell power on the exchange can be extended for another month if the stock of coal in the domestic factory does not improve.
Both factories have a combined capacity of 8,000 MW but running at a lower capacity regardless of enough imported coal supplies.
Tata Power has withdrew 3,200 MW and ADAN 1,200 MW over the issue of compensation rates.
Switching to this capacity will allow basic load stations to reduce so that inventory in other factories can be built.
It will also calm prices on the stock exchange, which averages Rs 8 per unit against around RS 3 a month ago.
Prices have increased due to demand from countries, which are forced to buy from exchanges because of coal shortages hit power houses.
The electricity authority document was showing fuel stock in 73 coal-fired factories with a total capacity of 92,417 MW very critical or very important.
Six has a ‘zero’ stock and runs on daily supply, 13 has a buffer day, 17 has supplies for two days and 13 plants for four days.
The rest has stock for less than eight days.
According to an aluminum association, a power outage or failure for two hours or more causes liquid aluminum freezing in a pot that leads to turning off the plant at least six months.
Industry executives blame low fuel stocks on poor supply and lack of planning.
But India Coal Ltd., which contributed 80% of domestic production, blamed a decline in inventory in the generator who failed to heed his advice since October to demand nails.
Cil executives told Tii the company supplying 196.6 MT coal to the electricity sector in the April-August period, or 6.5% more than 184 MT in the same period in 2019.
“Coal stock in plants is 24 MT first, almost on Par with shares in the previous five years.
It could be higher if the generator does not regulate deprivation, “the official said.