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States can use quota of coal in pvt power plants for 3 years

States can utilize quota of coal in pvt power plants for 3 years

NEW DELHI: As increasing electricity need extends fuel supply lines, the federal government on Friday said states can use their quota of coal in private power plants for as much as three years, rather of one year at present, as this will reduce pressure on Railways and enhance capability utilisation of more efficient units. The longer duration will offer convenience level to states and personal power plants for a more economical tolling proposition. States can put their allocated coal to more optimal usage at power plants that are near to mines as it is simpler to transfer electrical power rather of coal to faraway states, the power ministry stated in a declaration. The ministry had, at a meeting to examine fuel stocks at power stations previously this month, decided to permit states to utilize such tolling center for approximately 25 per cent of their allocated coal. Tolling likewise minimizes power production cost of states due to short transportation distance and the reality that the private power plants are generally more effective than those operated by the state utilities. The changed method for utilisation of coal set aside to states at other systems likewise makes it necessary for the tolling plant to make readily available 100 %power arranged by the buying state. Otherwise, the power plant will have to pay 20%of the tariff as settlement to the purchaser for the quantum of deficiency listed below 80 %of the capacity arranged by the state. Likewise, the modified standards likewise safeguards the interest of the power plants by doubling the settlement to be paid by the purchasing mentions to 20% of the tariff if they set up less than 80%of the capability on an average. In both cases, the compensation is to be paid on a regular monthly basis for the quantum of shortfall below the 80%threshold.
These are the most current in a series of steps, including asking states to import coal, the ministry has taken in recent times as the country’s power plants are having a hard time to keep up with rising demand due to low fuel stocks. Fuel inventories at the power plants are at 35%of the normative requirement, which is good for only about 10-11 days. The everyday usage of coal is more than the real supply at power plants as the Railways come to grips with an increased need, which is resulting in faster drawdown of stocks. The government anticipates peak demand to touch 210 GW this
month and desires all coal-based power plants to have sufficient fuel stock to provide about 160 GW during peak hours. Released at Fri, 22 Apr 2022 19:18:47 +0000

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