Captive power producers urge govt to ensure normal coal supplies

A captive power producers' association has urged the government to normalisation the supply of coal.

“We are getting only 35 per cent to 40 per cent of what we should be getting. Let there be 100 per cent normalisation of supplies to captive power plants (CPPs)," Rajiv Agarwal, Secretary-General, Indian Captive Power Producers' Association (ICPPA) said in a press conference.

“Any abrupt stoppage of this secured coal supply will bring the industry to a grinding halt and have a severe impact on the SMEs in the downstream sector, resulting in increased prices of finished products with a burden on end consumers, “ he said.

Blaming independent power generators for the coal crisis, the ICPPA alleged that independent power producers did not build up the required inventories which led to the supply crisis.

"All the coal rakes made for CPPs have virtually stopped," he said, adding that the independent power producers are not building inventories because they know that if there is a crisis the whole government will help them.

Out of a total 78,000 MW installed CPP capacity in the country, around 40,000 MW (i.e. 55 per cent) CPPs are thermal-coal based, which require 200 million tonnes (MT) coal per annum.

Significant investments to the tune of 30 billion dollars have been made for setting up these CPPs and associated infrastructure, which have generated 15 lakh direct and indirect employment.

Check out latest DH videos here