Odisha Cry For Coal

While Odisha is having reserve of 24 Percent of non-coking coal of the Country, the State is reeling under coal shortage 

And the Industries in Odisha are facing tough time as the coal supply has critically slowed down.
According to arrangements, the Coal Major, Mahanadi Coalfileds Limited (MCL) supplies coal to the Industries.
Coal scenario in the State looks bleak as MCL has slashed down its production target during 2017.
During April to October, 2017, MCL has set target of 80.35 Million Tons as against the target of 85.33 Million Tons during corresponding period of 2016.
While target is low, production has also come down, which is 91 Percent of the Target has been achieved, sources said.
For supply of coal the Industries are categorized as ‘Power’ and ‘Non-Power’ Sector.
Government run Power Plants and Independent Power producers (IPP)s are covered under ‘Power’ Sector, while Industries like Fertilizer, Cement, Sponge Iron and Captive Power Producers (CPP) are under ‘Non Power Sector, said a senior
According to sources, the Total Annual Contracted Quantity (ACQ) for the year 2017-18 was 119 Million Tons for Power Sector and 14.74 Million Ton for Captive Power Plant (CPP).
Coal is sold through Fuel Supply Agreement (FSA) and Spot e-Auction to the Power Producers and Non Power Sector.
The Industries have to bid and sign agreement for five long years for the allotted quantity and allotted quantity is delivered on monthly basis.
Spot e-Auction is open for bidding by all including traders and are held usually once in a month and quantity has to be lifted within 45 days from the delivery order.
Besides the above, washery rejects are supplied by private parties from their washeries located at pit head.
While ACQ is 119 Million Ton , MCL has been able to dispatch hardly 7.4 Million Ton to Power Sector during the period April to October 2017.
MCL has contracted for an average of 9.95 Million Ton per month, which speaks volumes about short supply of coal.
In the meantime, MCL has served notice to ‘Non Power Sector, including CPPs to supply 80 Percent of the monthly schedule quantity from October onwards, which indicates that availability of coal at MCL is insufficient to meet customers’ requirement, insiders say.
On railway rake movement front as on date there are 564 rakes pending to be received from MCL, Talcher and 887 rakes from IB Valley and these rakes are pending from April, 2017.
CPPs are to receive 660 rakes, IPPs 405 and others 386 rakes. It is understood that Indian railways has instructed for priority placement of rakes for Power Sector. Non Power sectors are overlooked and left to fend for themselves.
So rake shortage for Non Power Sector is also posing problem and Industries are crying hoarse.
Under this backdrop, Industries in the State have been forced to either import coal or reduce generation of power and production in the Industries.
Sources said that some of the CPPs have shut down their plants and few of them are procuring power from State Utilities at higher cost to meet the gap.
In this scenario a coal surplus state is forced to import coal and coal imports have gone up by 10 Percent and in future it will go up more.

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