Government Aims To Simplify Coal Stocking Regulations

Amid the ongoing coal crisis in the country, the central government had decided to simplify coal stocking regulations for thermal power plants, mandating them to maintain fuel inventories based on a specific plant load factor to avert the annual crisis the country faces during peak electricity demand seasons.

At present, the regulations are based on the last seven-day average coal consumption. Pithead plants have to maintain 15 days’ stock while for other generators, this can go up to 30 days depending on the distance between the plant and the coal supplying mine. These present regulations are seen as defective because if power demand rises suddenly and more coal is consumed, a plant would see its stock deplete fast and run out of coal before the supply is replenished.

Power companies have welcomed the proposal to revise these guidelines as they will simplify the calculation and eliminate chances of manipulation and complacency on part of power project operators. So, if a project curtails generation during a crisis to save coal, the following week it will become eligible for less coal as a penal measure. 

The current coal crisis has forced 80% of the coal-fired capacity to operate with less than the critical average coal stock of four days and one of the key reasons for the current crisis is that power plants have not built coal inventories. The new regulations will bring more clarity in coal supply position and coal stocking position.