CHENNAI: Coal imports have dipped drastically due to the COVID-19 pandemic in the first quarter of the financial year but Tangedco has been able to sail smoothly as industries across the state are running with 50 per cent capacity.
The state electricity board is highly dependent on coal imports through Kamarajar Port. The port's Chairman Sunil Paliwal told The New Indian Express that there has been a dip of 43 per cent in coal imports but they are now on the recovery path.
Officials in Tangedco are yet to press the panic button. Sources told Express that the usual power generation was 16,500MW during this period last year. However, due to the lockdown, the power generation fell by 2,500 MW and the demand is only 14,500MW.
Sources told Express that the state has been able to generate enough power as commercial organisations, including malls, as well as Chennai Metro Rail are not functioning. "This has resulted in air conditioning load also coming down," said a source.
It is also learnt that the state is able to get enough coal from domestic suppliers. As a result, it is not dependent on imported coal for now.
The total coal required for Tangedco’s power stations is approximately 72,000 metric tonnes per day and the total Fuel Supply Agreement (FSA) quantity available at present including the side agreement is 21.291 Million Tonnes Per Annum (MTPA).
However, the average realization for the last five years is only 61.6 per cent against the agreed FSA quantity. Coal India Limited (CIL) had curtailed the existing linkage quantity of 20.445 MTPA to
18.791 MTPA. This may be restored to 20.445 MTPA, the state has urged the power ministry earlier this month.
Interestingly, thermal coal imports at India’s 12 major ports dropped 34.70 per cent to 17.71 million tonnes (MT) in the first quarter of the current fiscal, according to the Indian Ports’ Association (IPA).
It is learnt that during September 2019, Tangedco imported 2569.30 tonnes of coal while during the same period in 2018, it imported 1418 tonnes of coal.
Official sources also said that during the July-August period, the state is more dependent on wind energy than thermal power plants and hence is able to manage with the limited supply of coal.
Thermal coal is the mainstay of India's energy programme as 70 per cent of power generation is dependent on the dry fuel, while coking coal is used mainly for steel-making.