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Nationwide miner Coal India Ltd (CIL) has lifted all restrictions on the quantity of coal that energy technology items can procure, permitting energy crops with gas provide agreements (FSA) to accumulate as a lot fossil gas as they want. This marks a shift from the earlier system, the place CIL provided coal primarily based on the annual contracted amount (ACQ) agreed upon with every energy plant.
In a press release launched on Tuesday, the corporate introduced: “CIL has paved the way in which for permitting provides past ACQ to thermal energy crops of the nation, together with impartial energy crops (IPPs) or privately owned items. This is applicable to the gencos which have signed the FSAs embedded with such an enabling clause.”
It additional famous that within the final week of June, CIL’s board accredited the removing of provide caps past the ACQ for “ease of doing enterprise” and “simplicity”, and to keep away from “duplicity of labor”.
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Beforehand, CIL allowed coal provides as much as a most of 120 per cent of the ACQ to energy crops and IPPs. The idea of ACQ was first launched beneath the New Coal Growth Coverage in 2007, which initially capped coal provide at 80-90 per cent of an influence plant’s necessities. This threshold was raised to 100 per cent in 2022-23, and in 2023-24, it was additional elevated to 120 per cent on account of CIL’s surplus coal availability.
The corporate highlighted that the brand new coverage will profit energy crops looking for to “raise greater portions of coal past their stipulated ACQ”, whereas additionally enabling CIL to extend its coal provide at a time when demand exhibits indicators of slowing.
This simplification would profit the ability crops and enhance CIL’s provides, the assertion added.
In an interview with Enterprise Normal final month, CIL Chairman and Managing Director P M Prasad pressured that quantity maximisation is a key technique for the corporate to boost its income. “Quantity development in sale of coal maximises our income as a result of main value is fastened and any enhance in gross sales is advantageous,” he stated.
CIL’s pitheads at present maintain a coal inventory of 72 million tonnes — 47 per cent greater than the 49 million tonnes as on August 12, 2023. The nationwide common coal inventory with energy crops has reached a 14-day provide, a considerably excessive determine for monsoon months.
At the moment, coal-generated electrical energy satisfies India’s 75 per cent energy demand. In recent times, India’s energy demand is incresing within the vary of 6-8 per cent yearly and this incremental demand is being met by thermal energy items.
In 2023-24, CIL provided 101.6 per cent of the projected coal demand, registering a 5.4 per cent development in coal provide over the earlier monetary yr. Of the 153 home coal-based energy crops within the nation, CIL has long-term linkages with 127 crops, masking 592 million tonnes, together with 50 IPPs.
First Printed: Aug 13 2024 | 6:00 PM IST
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