Coal crisis in NTPC's Barh-II project (Part I): First unit shut for want of coal

June 2: Coal shortages have started taking a toll on power generation in the country. A
case in point is NTPC's Barh-II super theral power pro!ect in Bihar" which is grappled
with the pro#le o$ coal shortages a$$ecting operations o$ the pro!ect.
%hile the $irst unit o$ &&' (% has already #een coissioned in )cto#er *'+," NTPC
has not #een a#le to #egin coercial operations at the unit #ecause o$ shortage o$ coal
supply.
Although the pro!ect has #een linked to NTPC's captive ines -- Chatti Bariatu -
.erandari" there has #een a delay in coenceent o$ coal production $ro the two
#locks owing to de-allocation o$ the #locks $or a #rie$ period..
Pertinently" the ines were de-allocated #y the coal inistry in /une *'++" #ut were
su#se0uently re-allocated in /anuary *'+,.
%ith the Barh-II 1TPP proposed to #e coissioned in (arch *'+2" NTPC now $ears
that the pro!ect ight #e le$t stranded i$ the re0uired coal supply $or the pro!ect is not
ade availa#le.
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Coal crisis in NTPC's Barh-II project (Part II): Copan! scouts for coal suppl! till
lin"e# coal $loc"s coe up
June 2: %hile the developent o$ the two linked coal #locks is e6pected to take soe
tie" NTPC is looking $or tapering linkage $or $ueling the pro!ect till the coal #locks #egin
production.
Accordingly" the power a!or has re0uested the (inistry o$ Coal to supply coal to the
pro!ect under the Presidential 4irective o$ /uly *'+, which directed Coal India 7iited
3CI75 to supply coal to theral power plants worth 8"&&' (% capacity and other siilar
cases which do not having coal linkage #ut are to #e coissioned #y (arch" *'+2.
Pertinently" the coal inistry is considering all the pro!ects that are likely to #e
coissioned #y (arch ,+" *'+2" have a long ter Power Purchase Agreeents 3PPAs5
and high #ank e6posure $or providing coal supply in line with the Presidential 4irective.
1tating that its Barh-II pro!ect is eligi#le $or such a dispensation" NTPC has re0uested
the coal inistry to consider the pro!ect as siilarly placed power pro!ect not having any
$uel linkage" till the captive ines o$ NTPC start production.
1horing up its case" NTPC has contended that the ines $ro where Central Coal$ields
7iited is o$$ering coal are nearer to Barh-ll pro!ect and transportation o$ coal can #e
worked out in consultation with CC7.
(oreover" NTPC has speci$ied that the tiely developent o$ the Barh-II pro!ect is o$
national iportance as it will help ease the power woes o$ Bihar and other states.
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In#ia's first %&& '( )*+C plant-I: 'an! in#ustries set to $enefit
June 2: India's $oray into Advanced 9ltra 1upercritical technology is undou#tedly a huge
challenge with the technology yet not developed anywhere in the world" #ut i$ achieved
success$ully can spiral into technological advanceents into any industries apart $ro
the power industry.
4:I has stated that once the technology is developed indigenously it will open up
any vistas $or developent o$ capa#ilities $or undertaking $uture innovations in that
technology strea.
1oe industries that could potentially #ene$it include anu$acturers o$ tu#es and
pipes" castings" $orgings" valves" $ittings" welding consua#les tec.
The technologies could also $ind applications in other industries where high
teperatures are encountered" the 4:I has noted.
:owever" developing the technology is no easy $eat. Talking a#out the challenges o$
developing the technology indigenously" the 4epartent o$ :eavy Industries 34:I5 has
noted that new nickel #ased alloys are re0uired $or which anu$acturing technologies
such as welding" anu$acture o$ tu#es and pipes" castings" $orgins etc are yet to #e $ully
esta#lished.
Things get even ore coplicated as $acilities $or anu$acturing such ites even $or
supercritical plants also are not availa#le in India.
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In#ia's first %&& '( )*+C plant-II: Plannin, Coission's su,,estions shot #own
June 2: The 4epartent o$ :eavy Industries 34:I5 has shot down the suggestions ade
#y the Planning Coission in regards to the ;'' (% A91C power plant unit #eing
developed #y the consortiu o$ B:<7" NTPC and I=CA>.
The Planning Coission had called $or policy initiatives like denying licenses to su#
critical or less e$$icient technologies to derive $ull #ene$its o$ investents in A91C.
:owever" the 4:I has opined that such easures are not needed as India re0uires a
wide range o$ power plant capacities ranging $ro sall captive plants to large utility
plants.
Additionally" the 4:I has not $avoured the Planning Coission's proposal to rap up
production capacity o$ B:<7 and other power plant e0uipent anu$acturers to avoid
#ottlenecks in supply.
The 4:I has noted that the #asic anu$acturing capacities re0uired $or A91C
e0uipent would #e the sae as re0uired $or su#critical and supercritical e0uipent with
addition o$ special achine tools" welding and $a#rication technologies and steel elting
$acilities aongst other things.
?urther" clari$ying Planning Coission's apprehensions a#out the >-4 e$$orts to #e
done in line with Indian coal 0uality and its ash content" the 4:I has noted that the
aterials and e0uipent will #e developed suiting Indian coal characteristics as well as
#lended coal.
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In#ia's first %&& '( )*+C plant-III: Protocols e-ol-e# for -ali#atin, cost
June 2: To ensure that the pro!ect does not overshoot its already grands e6penditure
plans" the 4epartent o$ :eavy Industries 34:I5 has put in place a procedure $or vetting
the cost and e6penditure at every stage.
To #egin with" the 4epartent has ensured that the cost estiates $or aterials and
test e0uipents are #ased on the ost recent procureent o$ siilar e0uipent and
#udgetary 0uotations $ro prospective suppliers.
Additionally" the 4:I will #e aintaining separate accounts $or all e6penditures under
the pro!ect. These will #e audited and the reports will #e su#itted to the =overnent o$
India.
The 4epartent has also proposed the $oration o$ two high level coittees -
)verarching Coittee and 1teering Coittee" #oth chaired #y Principal 1cienti$ic
Advisor 3P1A5 to the =overnent o$ India - $or vetting and approving all a!or
e6penditures.
This apart" the 4:I has con$ired that all purchases will #e ade in con$orance with
the purchase and works policies o$ the respective organisations.
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In#ia's first %&& '( )*+C plant-I.: Coponents an# technolo,! to a#here to
international stan#ar#s
June 2: %hile $ocusing on keeping the costs as planned" the 4epartent o$ :eavy
Industries 34:I5 is ensuring that there is no coproise in the 0uality o$ the indigenous
technology #eing developed. To this end" the 4:I has put in place an ela#orate
procureent plan $or procuring input aterials and coponents that adhere to re0uired
standards and speci$ications.
%hile two high level coittees will review all aspects o$ the pro!ect including
technological aspect" Peer >eview Coittees with independent technicians as
e#ers will #e set up in di$$erent areas to review the pro!ects $ro a technological
perspective at various stages and suggest corrective action.
The developed designs and technologies will #e su#itted to national and international
e6perts $or technical validation. (oreover" prototypes will also #e tested at reputed
national and international la#oratories.
(ost iportantly" aterials that re included in international standards such as A1(<
will #e used in e0uipent" tu#es" pipes etc. All new aterials will also #e su#!ect to long
ter tests such a creep" corrosion etc and will #e characterised during various stages o$
anu$acture.
In addition to this" to ensure aintenance o$ 0uality and usa#ility" soe critical
coponents such as #oiler tunes will #e tested un test loops at e6isting power plants" the
4:I has noted.
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In#ia's first %&& '( )*+C plant-.: +tiff copetition fro China/ 0*/ *+) an#
Japan
June 2: It is crucial $or India to adhere to the tight schedule laid down $or developing the
A91C indigenously so it is not le$t #ehind its counterparts including China" /apan" 91A
and the <uropean 9nion 3<95 which are also in the process o$ developing this advanced
technology.
Attepting to ake India a $ront runner in deonstration o$ this technology" 4epartent
o$ :eavy Industries 34:I5 is keeping an eye on the progress o$ other countries in
developing this advanced technology.
The #iggest challenge is likely to #e posed #y India's neigh#ouring country China as its
Adv-91C technology's critical phase o$ developing aterials and technologies is
e6pected to #e copleted #y *'+&. The deonstration pro!ect is then to coe up #y
*'*'-*+" very close to India's coissioning date $or its own ;'' (% unit.
Apart $ro this" the $irst phase o$ such a pro!ect has #een copleted in the 9nited
1tates o$ Aerica 391A5 and steps are underway $or ipleenting the second phase o$
identi$ying a power plant where coponents can #e tested in actual conditions.
/apan's progress on such a pro!ect is also a reason $or India to #e otivated to adhere
to the tight tie schedule. Currently" the country is testing various aterials $or #oilers
and tur#ine rotor as well as technologies like @''
o
C class #oiler" tur#ine and valve
technology are #eing developed" which is all e6pected to #e copleted #y *'+&.
The <uropean 9nion is also working on various deonstration pro!ects like C)1T"
A4@'' and C)(T<1@'' $or testing and developing the A91C technology. (aking
signi$icant progress in developing aterials and coponents" the <9 is working to
coplete testing #y *'+&.
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In#ia's first %&& '( )*+C plant-.I: Iport #epen#ence for aterials an#
technolo,! to ,o #own in the lon, run
June 2: The 4epartent o$ :eavy Industries 34:I5 has opined that with indigenous
developent o$ the A91C technology" accopanied #y indigeniAation o$ advanced
aterials" the long ter iport content would #e signi$icantly reduced.
Acknowledging that initially there will #e iports o$ aterials and coponents $or
which anu$acturing capacities do not currently e6ist in India" the 4:I has claied that
these iports will drastically reduce as anu$acturing capacities are created in India
during the developent o$ the $irst A91C unit.
(oreover" the iport o$ aterials and coponents will go down even $urther as the
constraint posed #y iported technology to iport its key aterials in case o$ repairs will
#e reoved with the indigenous developent o$ the A91C technology.
Additionally" the 4:I is also con$ident that such a ove to doestically develop such a
technology and related aterials will result in lower dependence on iports $or the
e6isting range o$ supercritical coal-$ired power plants as well.
This su#stantial reduction in iports in the long run helps !usti$y the huge up$ront
investent in >-4 involved in developing such an advanced technology indigenously.
The 4epartent has noted that developing the technology within the country will prove to
#e uch less e6pensive in the long run than ac0uiring the technology a$ter a $ew years
with various riders $ro soe other country.
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1I+ $ase# s!ste #e-elope# to i#entif! in-iolate forest areas
June 2: 1hunning adhoc ways to identi$y inviolate $orest areas" the (inistry o$
<nvironent and ?orests 3(o<?5 is developing a coprehensive paraeterised way to
dearcate inviolate $orest areas. The inistry is getting help in its endeavour $ro the
?orest 1urvey o$ India 3?1I5" 4ehradun which has developed a =eographical In$oration
1yste 3=I15 #ased syste to identi$y inviolate areas.
Pertinently" a Coittee under the Chairanship o$ 1ecretary" <nvironent and
?orests was $orulated to suggest paraeters $or identi$ying $orest areas where any
ining activity would lead to irreversi#le daage to the $orests and there$ore should #e
#arred $ro any non-$orest activity.
The Coittee suggested si6 dra$t paraeters naely $orest cover" $orest type"
#iological richness" landscape integrity" wildli$e value and hydrological value to identi$y
inviolate $orest areas.
Based on these paraeters" the ?1I has developed a =I1 #ased syste to assess the
e6tent o$ ineral #earing areas which ay $all in the inviolate $orest areas.
In line with this" the coal inistry has #een re0uested to $urnish =I1 layers $iles to the
environent inistry to help $acilitate the assessent o$ the e6tent o$ ineral #earing
areas which ay $all in the inviolate $orest area.
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*ttar Pra#esh power crisis: Centre $laes state ,o-ernent for acute power
shorta,e
June 2: Taking the 9ttar Pradesh Chie$ (inister Akhilesh Badav under his radar" the
newly appointed Power (inister Piyush =oyal has stated that the state's power crisis is its
own aking.
1tating that the acute power shortage $aced #y 9P in the past $ew days is a direct
result o$ poor governance" =oyal has turned around the allegations put on hi #y the
Akhilesh Badav led 9P governent.
=oyal has argued that non procureent o$ coal and #acking down on gas #y power
developers has pushed the state in this darkness. 1u#stantiating his clai" he noted that
the private sector plant Anpara-C o$ &'' (% is reeling under $orced outages due to non
procureent o$ iported coal #y the developer even when the coal supply $ro Coal
India 7iited 3CI75 is ore than C'D o$ the linkage granted.
Then again" the state is note taking power e0uivalent to its allocation $ro gas #ased
stations o$ Anta" Aurayia and 4adri.
To cur# this power shortage" the power inistry has suggested the state to iprove
the generation $ro the current availa#ility. Nota#ly" only 8"2'' to 2"2'' (% o$ the state's
generation capacity o$ +'"+'' (% is currently availa#le.
Additionally" the power inistry has suggested the state governent should re0uisition
,@@ (% availa#le $ro NTPC /ha!!ar power plant in :aryana while ,'' (% can #e ade
availa#le iediately to the state i$ a re0uisition is raised #y the state distri#ution utilities.
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Power Pro#ucers a"e a case for interplant transfer of coal for CC0) appro-e#
projects
June 2: %ith coal shortages to result in delay in coissioning o$ power plants worth
8"&&' (% likely to #e coissioned #y (arch" *'+2" the pro!ect developers have ade
a case in $ront o$ the Coal (inistry $or allowing interplant trans$er o$ coal $or their pro!ects.
These 8"&&' (% worth o$ pro!ects were allowed coal supply last year #y the Ca#inet
Coittee on <conoic A$$airs 3CC<A5 even though they did not have any $ir coal
linkage" owing to the readiness o$ the pro!ects and the possi#ility o$ achieving
coissioning #y (arch" *'+2.
:owever" even a$ter #eing allowed coal supply" the pro!ect developers are still scouting
$or any $ir assurance o$ coal supply.
Accordingly" the pro!ect developers have re0uested the (inistry o$ Power to e6tend the
interplant trans$er o$ coal to these pro!ects in line with CI7Es Interplant Trans$er o$ Coal
guidelines.
1tating that the e6tension o$ interplant trans$er o$ coal to the 8"&&' (% pro!ects would
not have any additional #urden on CI7 even as it will help eet the short$all o$ coal $or
these pro!ect" the power producers apprised that such a provision would also optiise the
logistic cost o$ coal supply.
It ay #e noted that CI7 has earlier allowed interplant trans$er o$ coal in the ?1As $or
the @;"''' (% capacity power pro!ects having coal linkages.
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2& capti-e coal $loc"s pro#uce 3454 'T #urin, 2&63-62
June 2: The Coal Controller )rganiAation has reported the total coal production $ro
captive coal #locks has #een ,C.C illion tonnes 3(T5 during the year *'+,-+8. Nota#ly"
out o$ the total allocated captive coal #locks" 8' coal #locks have started production #y
(arch" *'+8. The we#site carries" $or re$erence purposes the details o$ the coal
production $ro captive coal #locks during *''@-'; to *'+,-+8. The in$oration is
provided under the $ollowing heads:
Nae o$ the copany
Nae o$ the #lock
4ate o$ coenceent o$ production
<nd-use plant
Bear-wise details o$ the coal production in the ++th Plan
Coal production in the +*th Plan
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Capacit! a##ition achie-eent for )pril 2&62 #eclines/ reports C0)
June 2: The Central <lectricity Authority's 3C<A5 latest $igures on capacity addition shows
a assive decline in the capacity addition during the onth o$ April *'+8 as against the
corresponding period last year.
4uring April" capacity addition stood at +,2 (%" resulting in a decline o$ 2*D as
copared to the capacity addition o$ *;* (% during April *'+,.
According to the review report" there was no set target $or the theral sector" while the
actual capacity addition has #een +,2 (% #y coissioning o$ 1alora TPP 9nit-I Phase-
I in Chhattisgarh #y Fandana Power 7td.
%hile the target set $or the hydro sector was &;.&@ (%" no hydro unit was
coissioned during the onth. As $or the nuclear sector" neither capacity addition was
achieved nor target was set.
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Pea" #eficit at 7528 in )pril 2&62
June 2: Peak deand" one o$ the prie $actors $or deterining the power supply position"
recorded a de$icit o$ 2.8D as per the provisional $igures released #y the Central <lectricity
Authority 3C<A5 $or the onth o$ April *'+8.
Pertinently" against the peak deand o$ +8'"CC; (% across the country" only +,,"88*
(% o$ power was et.
According to C<A's power sector review $or the onth" the southern region su$$ered the
highest peak de$icit at ;.*D. The northern region $ollowed ne6t at @.8D peak de$icit.
The western and eastern region registered peak de$icit o$ *.+D and +.2D respectively
while the northeastern region e6perienced a peak de$icit o$ &.CD $or the onth.
To note" the peak de$icit recorded in the previous onth o$ (arch" *'+8 was ,.CD.
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)ll In#ia P9F reains $elow :&8 in )pril 2&62 #espite ipro-eent o-er 'arch
2&62
June 2: All India plant load $actor 3P7?5 in April *'+8 stood at &C.,;D" as against &&.2;D
recorded during the previous onth o$ (arch.
According to the onthly review o$ the power sector released #y Central <lectricity
Authority 3C<A5 $or April" the central sector e6hi#ited a P7? o$ ;'.88D which is higher
than the @C.C+D achieved in (arch.
Interestingly" the P7? achieved #y the state sector utilities increased $ro &'.'+D in
the previous onth to &*.C8D during April.
In addition to this" the private sector utilities witnessed an increase in the P7? during
the onth" going to @*.@&D $ro &&.2;D e6hi#ited in the onth o$ (arch.
Nota#ly" the All India P7? recorded in April *'+8 is &C.,;D against the P7? o$ &C.C2D
achieved during the sae period last $iscal.
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News Briefs
June 2: Tata Power's 'un#ra an# 'aithon plants re,ister hi,her ,eneration in
F;62: Tata Power has generated *,"C*; (9 o$ electricity at its (undra ultra ega power
pro!ect in the past $iscal year" which is C*D higher than the generation capacity o$ +*"88'
(9 in ?B+,.
--(oreover" (aithon Power 7td 3(P75 -- /oint Fenture #etween Tata Power and
4aodar Falley Corporation 34FC5 has generated &",*; (9 during *'+,-+8 as
copared to 8"2;; (9s in ?B+,.
--1peaking on the developent" Anil 1ardana" (anaging 4irector" Tata Power" stated"
G%e at Tata Power ai to generate +;''' (% #y *'**. It gives us great pride to #e the
largest integrated power copany in India. %e will continue in our endeavors to $urther
strengthen our operations and optially utilise our resources to achieve the set targetsH.
+u<lon to raise =s 6/&&& crore fro non-core asset sales in F;67: The wind
tur#ine aker 1uAlon <nergy has planned to raise a#out >s +"''' crore $ro sale o$ non-
core assets this $inancial year.
--To note" the copany has already opped up ore than >s @'' crore #y selling two
non-core assets. This includes >s 22' crore realised $ro the sale o$ 91-#ased Big 1ky
wind $ar and around >s +@, crore #y o$$loading stake in a Chinese anu$acturing
$acility.
4etails
63 power units an# 2: transission lines fail on June 6
June 2: +, units" aggregating 8"*C' (%" were taken o$$line across the country
yesterday.
In the eastern sector" the unit ; o$ the (e!ia B power station was taken o$$line due to
tu#e leakage even as the unit 2 o$ the 1antaldih power station su$$ered $ro PA $an
pro#le.
The +2' (% unit * o$ the (eenakshi power station in the southern region was taken
o$$line yesterday $or undertaking a!or aintenance works. The unit is e6pected to
resue operation #y /une ,.
In (aharashtra" the /aigad-, and 8" Paras-," Chandrapur-@ and .haperkheda-8 were
$orced to stop power generation due to various technical $aults. ?ive other power units in
the western region were also taken o$$line yesterday. %hile =TP1-8 and F1TP1-8 were
taken out due to low deand and =T replaceent respectively" 41P(-* and .or#a <
<6tn * su$$ered $ro #oiler tu#e leakage. The unit & o$ AP7 also su$$ered $orced outage
during the day.
(eanwhile" the 8''kF .olaghat-.haragpur I - II transission line in the eastern sector
su$$ered $orced outage with no e6pected tie o$ revival known.
Two transission lines in the northern region went non-operational on account o$
soe technical $ault. (oreover" si6 other lines in the region were opened anually due to
high voltage. <6pected tie o$ revival is not known $or any o$ the eight lines.
In the southern region" the **'kF 9pper 1ileru -Baliela transission line was taken
out o$ service due to technical $ault.
(oreover" si6 transission lines in the northeastern sector and eleven transission
lines in the western region were also rendered non-operational during the day.
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>arnata"a re-ises +olar Polic! to push solar ener,! in the state-I: )is to install
2/&&& '( $! 2&26
June 6: .een on harnessing the state's solar potential to the $ullest" the .arnataka state
governent has revised the state's solar policy even #e$ore the e6piry o$ the e6isting
1olar Policy *'++-*'+&.
?or keeping pace with the technology advanceents and providing conducive
environent $or a greater addition o$ solar units" the state governent has issued
I.arnataka 1olar Policy *'+8-*+I.
9nder the policy" the governent ais to add solar generation o$ iniu *"''' (%
#y *'*+ in a phased anner.
This" according to the governent" will result in solar power $ul$illing ,D o$ total
consuption o$ the state #y *'*+.
)$ the proposed addition o$ *"''' (%" a whopping ;'D or +"&'' (% is targeted $or
addition $ro grid connected pro!ects. The highest addition o$ ,2' (% is planned $or the
current $iscal *'+8-+2.
Additionally" the #alance 8'' (% is to #e achieved $ro grid connected roo$ top solar
generation pro!ects #y *'+;.