Singaji project failed to utilize 70% of its coal allocation: RTI query

Times of India: Bhopal: Friday, 27 February 2015.

Shri Singaji Thermal Power Station (SSTPS) in Khandwa district of Madhya Pradesh, a venture of the state government likely to be inaugurated by the Prime Minister Narendra Modi on March 1, has remained an under performer with poor plant load factor (PLF) and consumed only 30% of it total coal allocation.

An RTO query by TOI reveals that the 600 KW first phase of the project failed to utilize coal allocation by Union coal ministry.

Replying to the query, Coal India Limited has informed that between January and November 2014, a total of 9.18 lakh metric tonne of coal was supplied to the Shri Singaji Thermal Power Station. Total quota of coal for this unit is around 24.5 lakh metric tonne but MP power generation company limited, that operates the plant, failed to procure it, said sources. CIL is bound by fuel supply agreement to supply a minimum of 65% of coal requirement for the project.

However, officials of the MP power genco blame railways for its inability to utilize coal allotted for the unit.

"Railways have not been able to provide adequate number of rakes for this power station which has a coal linkage from mine in Chhattisgarh's Korba district. We have raised the issue with railways several times. Now, senior railway officials are visiting the power station in this regard," executive director (ED) fuel management, A R Sankule told TOI.

Contrary to this, documents in possession of TOI reveal the plant has only performed at 25% of its capacity (Plant load factor) in last one year. Its coal consumption per unit should have been around 670 gms of coal as per the MP power genco, but its average coal consumption per unit generation has been around 800 gms which makes power costlier by at least 20%.

First unit of 600 MW of Singaji project was started commercial operations from February 1, 2014.

Officials of the MP power genco are busy ahead of the Prime Minister's proposed visit to Khandwa and senior officials including its managing director are stationed at the power station to ensure that all operations are smooth.

Officials are concerned about the irrational coal linkage made for project and are planning to raise the issue with Prime Minister so that it could be resolved. At present the transportation of coal to this plant costs more than the price of coal, as the mine is located at a distance of more than 1,000 kilometers.