May 23, 2019
Home Posts tagged Inventory Stock

To meet the rising demand for power across the country and to avoid any delays in procurement of the coal, the Government has decided to allow stoking from 7 to 15 days. This will allow power manufacturers enough breathing room to streamline the sourcing of the coal and maintain a steady supply of power.

Inaugurating conference on the India Coal Sector organized by ASSOCHAM held in New Delhi today, Mr Haribhai Parthibhai Chaudhary, Minister of States for Mines and Coal, GOI, said that over 75 per cent of total power production in India is met by coal. It is imperative for the Government to maintain the consistent supply to meet the rising demand for power in the country and sustained economic growth.

Speaking during the ASSOCHAM Conference on India Coal Sector, Mr. Chaudhary, citing the need for increasing the number of days for coal stocking, he said, “Our approach for 24 hour electricity supply has resulted into increased supply of coal to the power stations with an insight to keeping inventory stock of at least 15 days in advance. Earlier the coal stock at power stations were for 7 days but from last 2-3 years the number of days has increased to 15 days. We are also increasing dependency on our railways, which is one of the fastest and reliable mode of transporting coal.”

He further added that commercialization of the coal sector was required in order to increase the production. He said, “With commercialization and opening the coal sector for Foreign Direct Investment (FDI), this has reformed the industry in a big way. Introduction of E-auction is regularizing the coal production as it has brought in transparency which was required for decades.The Industry has also learnt new and good possible technologies of mining which is an indirect effect of International Relationship Building Campaign lead by the present Government.”

Commenting on the recent global developments of coal, Mr Vinay Prakash Goel, Chairman, ASSOCHAM National Council on Coal said that, “The global demand for coal increases by 2 per cent every year and is set to grow by 25% in next 2 decades due to the growth expected from developing economics like India, which is an attraction for the world. Power generation in India has grown by 6 per cent over the last 6-7 years. To augment the domestic supply to meet the demand, commercial mining will play a vital role.”

India is moving forward with the production of 650 million tons coal, which has increased from 460 million tons in 2014.The initiative of coal linkage has taken the foreground by speedy and rational distribution of coal to nearby power stations has saved approximately 3,500 crores from the funds of the government and has also cut down the price of electric power.

Given the present demand supply situation and the projected economic growth of the country, commercial mining will be a necessary step to increase production of coal. The reform is bound to bring efficiency in the coal sector by inducing more competition in the industry. It will also allow the use of new and advance technology, new talents and invite higher investment in the coal bidding section, creating direct and indirect employment.