The coal ministry has expressed
concern over increasing average
specific coal consumption by
power plants. In a note to the cabinet
secretary regarding coal production,
the coal ministry stated that an
important point for consideration in
respect of power sector is average
specific coal consumption. From 0.71
kg/kwh in 2006-07, the specific coal
consumption has increased to 0.74
kg/kwh in 2010-11 and with the
projected demand in 2011-12, its works
out to 0.79 kg/kwh. The ministry
stated that this is very high needs to be
reviewed through proper demand
management through improved
efficiency, reduced transmission and
distribution and transit losses.
The ministry further informed in the
note that about one percent
improvement in specific coal
consumption would amount to a
savings of about 6 million tonnes of coal
per annum with the current coal based
capacity of 93,918 mw at national
average PLF of 75 per cent. Further,
current transmission and distribution
losses are reported to be around 25 per
cent. At 2010-11 coal based generation
level it works out to about 134 billion
units. One percent reduction in T&D
loss implies a savings of 5.35 billion
units at 2010-11 generation level. The
ministry stated that the power sector
needs to improve coal consumption
levels through undertaking efficiency
improvement programmes and
reduction in T&D losses.
Regarding coal production in the
country the ministry mentioned that
the XI Plan started with a note for high
growth in coal sector in line with the
envisaged economic development.
Coal demand and production were
envisaged to grow at 9.5 per cent
against growth of 5.6 per cent achieved
in the 10th Plan. Even at this growth a
gap in demand and supply of 51 million
tonnes in 2011-12 was envisaged.
However, the situation changed
swiftly after first two years of the plan
partially due to global financial crisis
affecting the markets and local
environmental concerns restricting the
coal mining which led to revision of
targets downwards during the
midterm appraisal of the XI Plan.
The ministry further mentioned
that the supply from Coal India
Limited is slated to increase from
306 million tonnes in 2010-11 to 347
million tonnes in 2011-12. However,
this is subject to availability of
adequate number of railway rakes to
move the stocks from pitheads to
the utilities.