AndhraNews.Net - Steps to streamline Coal Supply to Power Plants

New Delhi: July 15, 2004

A contingency coal movement plan for power utilities for the period April-June 2004 was prepared by an inter-ministerial group comprising Ministries of Railways, Power and Coal on the initiative of the Cabinet Secretariat to build up coal stock in power plants. Coal India Limited (CIL) and Indian Railways have accorded an overriding priority to power sector in despatch and movement of coal.

During the first half of this calendar year, 125.097 million tonnes of coal have been despatched by CIL to power utilities as against the actual supply of 112.752 million tonnes in the corresponding period of the previous year. Close monitoring by the Inter-Ministerial group on day-to-day basis resulted in significant reduction in number of critical power plants in the country. On account of co-ordinated efforts by all concerned, it could be ensured that there were no outages in power utilities on account of non-availability of coal.

Ministry of coal and Mines has taken steps to expedite the sanction and grounding of new coal projects to augment coal supplies specially to the power sector. Government have also reduced the import duty on thermal coal which now stands at 5 per cent with a view to enabling power houses to import more coal to supplement their needs on account of increased generation of power.

Press Release: PIB

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