Fuel Audit Full Report

No.
: CPRI/ERED/ EA/117/12

Report

Submitted to

Punjab State Electricity Regulatory Commission,
Chandigarh

On

Fuel Audit of PSPCLs Thermal Generating
Stations
(Work order No.PSERC/Tariff/T/152/8792)

Submitted by

August 2012

ENERGY EFFICIENCY & RENEWABLE ENERGY DIVISION
Central Power Research Institute,
Prof. Sir C.V. Raman Road, P.B. No 8066,
Sadashivnagar, Bangalore 560 080.
E-mail: ered@cpri.in
Web-site: http://www.cpri.in
Fuel audit study of PSPCL thermal power stations for PSERC, Chandigarh - CPRI Report

Project Summary
01 Title: Fuel audit of PSPCLs Thermal Generating Stations.

02 Work Order No. PSERC/Tariff/T/152/8792. Dt-10-1-2012.
03 Sponsoring agency: Punjab State Electricity Regulatory Commission, Chandigarh
04 Contact Person (sponsorer): Er. Suresh Singla, Director (Tariff),
PSERC, Chandigarh
Mob: +91 9815461188
05 Project implementing agency: Central Power Research Institute,
P.B. No. 8066, Sir C.V.Raman Road,
Sadashivanagar Sub-P.O.,
Bangalore-560080
Tel:080-23604682; +91 9448459587
FAX: 080-23604682, 23601213

06 Contact Person (project
implementing agency):
M. Siddhartha Bhatt, Additional Director (ERED)
Central Power Research Institute,
P.B. No. 8066, Sir C.V.Raman Road,
Sadashivanagar Sub-P.O.,
Bangalore-560080
Tel: 080-23604682; +91 9448459587
FAX: 080-23604682/23601213
E-mail: msb@cpri.in; rajkumar@cpri.in
07 Energy audit team :
(At site)
M. Siddhartha Bhatt, Additional Director
N. Rajkumar, Engineering Officer
08 Objectives: To conduct a fuel audit at the PSPCL power plants and
recommend measures related to saving in fuel.
09 Scope of work: i. Study system of recording, sampling,
measurement, reporting, verification & accounting
for coal and Oil receipts, consumption and
stocking as inventory.

ii. Identify key constraints with the current fuel
accounting system across process, technology,
skills and facilities.

iii. Study the Fuel supply agreements &
evaluate whether there is any deviation and
procedural gaps.

iv. Measure the Gap between billed quality and
quantity vis--vis actual receipt of coal and oil.
Ascertain the loss and assess reasons for high
losses, if any.

v. Submit report on findings, along with
recommendations for proper fuel accounting.

vi. To check more precisely the methodology
regarding computation of cost of fuel being
passed on to the consumers as an uncontrollable
10 Report No.: CPRI/ERED/117/12

11 Power station: PSPCLs Thermal Generating Stations

12 Date of conduct of study: GGSSTP, Ropar: 1-3
rd
February 2012
GNDTP, Bhatinda: 4-6
th
February 2012
GHTP, Lehra Mohabbat: 7-9
th
February 2012
Reply to comments: 17
th
July 2012
Reply to points raised in meeting with PSPCL: 20
th
July 2012

13 Date of issue of report: 13
th
Aug 2012
14 Signature of Energy Audit
Team Leader:

15 Signature of the Division
Head:

i
EXECUTIVE SUMMARY
The fuel audit has covered the complete study of coal and fuel oil including the fuel
supply contract agreements. The salient areas of fuel saving and cost reduction are
as follows:
Review of the measuring methods and points of measurement of GCV of coal.
Reduction in the drop of GCV of bunkered coal vis--vis receipt coal.
Reduction in transit loss between the mine and the TPS.
Reduction in demurrages through improvement in unloading infrastructure.
Reduction in quantities of stones received through more vigilance at the
loading end.
Review of contract with washeries regarding the quantity and quality of coal
inputs and outputs.
Achievable station heat rate

The investment and savings are as follows:
Sl.
No.
Type of measure Invest
ment
(Rs. In
lakhs)
Savings
(Rs. Lakhs)
Pay back
period
(months)+
01 Improvement in coal
quality and quantity
measurement processes;
measurement of both
receipt and bunkered coal
at the TPS.
309 GGSSTP 20670 1 month
GNDTP 5410
GHTP 4530
Total 30610
02 Improvement in unloading
infrastructure, coal
management at the coal
yard and reduction of
demurrages
489 GGSSTP 162.71 29.8
months
(2.5 years)

GNDTP 27.15
GHTP 7.29
Total 197.15
03 Improvement in TL 60 GGSSTP 170.54 2 months
GNDTP No TL
GHTP 196.15
Total 366.69
04 Reduction in stones in
receipt coal
nil GGSSTP 368.62 Not
applicable
since no
investment
GNDTP Stones within
limits
GHTP 177.13
Total 545.75
05 Total investment and
saving
858 GGSSTP 21371.87 1 month
GNDTP 5437.15
GHTP 4910.57
Grand total 31719.59
ii
Sl.
No.
TPS Saving
Rs. In lakhs
01 GGSSTP 21371.87
02 GNDTP 5437.15
03 GHTP 4910.57
Total 31719.59

iii
The salient areas of interest are discussed in detail as follows:
Reduction in drop of GCV between the receipt and bunkered coal
While the audit of quantities of coal are in order, a drop in heating value is observed
between the receipt and bunkered quantity beyond the normal deterioration. The
process needs to be improved to minimize the drop in the GCV before it is fired into
the boilers. A number of measures have been suggested for the coal yard and for
the monitoring process of coal quality to restrict difference is GCVs to within 150
kcal/kg.

Some of the measures are:
Measurement process of GCV needs to be modified to introduce uniformity in
the processes as follows:
Sending end GCV (mine end) is being measured on equilibrated basis
(without surface moisture) and total moisture is being measured.
Receipt end GCV (TPS entrance) need to be measured considering
the total moisture by determining GCV on equilibrated basis and
adding the effect of surface moisture at the rate of 145 kcal/kg for 1
% surface moisture). This would give the GCV of coal as received.
Bunkered coal GCV (at the bunkering belts) need to be measured
considering total moisture by determining the GCV on equilibrated
basis and adding the effect of surface moisture (at the rate of 145
kcal/kg for 1 % surface moisture).
In cases where the payment is based on quality measurement at the TPS end
only, random and periodic samples need to be sent to third party truly
independent labs under committee supervision.

The concept of the fuel basket must be used to report the receipt coal GCVs,
i.e., source wise GCV must be provided.

The reporting period for coal consumption and reconciliation of stock must be
a month.

Reduction in transit loss

Considering the national trends in transit loss, the TL fixed for stations with similar
transit distances, high GCV of coal by almost 1200-1500 kcal/kg as compared to
other states a TL of 0.8 % is recommend for CIL coals excluding Penam. Since the
stations are getting majority of coals 60-90 % from Penam, TL is applicable only to
CIL coals and washed coals.

In the case of washed coals, TL on account of moisture loss must be to the
account of Washery since they have to load coals after equilibrium is reached.

The transit loss may be fully included in the scope of the liasoning agent by linking it
up with the coal cost (Rs. 30/t for 1 full rake of 4000 t for 1 % loss).

iv
Reduction in demmurages through improved unloading infrastructure

Upgrading coal handling capacity of tipplers and conveyors; and mechanical
equipment for removal of stones could bring down dummerages.

The unloading infrastructure at the three stations needs to be comprehensively
reviewed to keep in tune with the increasing of the wagon capacity by 20 % (with
further increase to 74 t wagon capacity by railways in the offing) as well as
reduction in unloading time by 30 % (7 h as compared to 10 h earlier). The
upgradation of the apron feeder capacity, conveyor belt capacity, tippler capacity,
etc., needs to be studied keeping the futuristic scenario. Wagon position equipment
(in-haul out-haul betel charges or side arm charges) must be put into service or
purchase a new.

Reduction in POL charges

POL can be minimized by higher level of vigilance from the Liasion agent as well as
the PSPCL officials at the sending end. Since loading is in the scope of Monnet, POL
may be brought into the scope of Monnet (presently it is 50/50 between Monnet and
PSPCL).

Reduction in quantities of stones received

The percentage of stones at GGSSTP is on the higher side (1.2-1.8 %) and steps
need to be taken to bring them to under 0.25 % of the receipt coal.

Contracts with Coal India and captive mines

The inclusion of surface moisture in computation of the GCV (which is presently
being computed on equilibrated basis which considers only inherent moisture) of the
sending end may be taken up with the appropriate authorities.

Contracts with washeries

The overall energetics of the washed coal vis--vis the benefits are presently not
economical. Presently the washed coal is expensive by almost 22-28 % as compared
to the raw coal. The washed coal must be cost economical in addition to the
environmental obligation to not transport coal above 34 %. A validation of the
process must be undertaken by a neutral third party agency at the earliest.

In the case of MDL the UHV of the raw coal lifted by the washeries is recorded. In
the case of Dipika washery of SECL, the band width of UHV of F grade is varying
between 2400 to 3600 kcal/kg, implying that there is almost 1200 kcal/kg difference
between the band limits of the F grade.

v
The sampling frequency of the coal lifted by washeries must be on the basis of
similar to rake sampling, i.e., around 350 kg per 4500 tonnes, i.e., 80 ppm (parts
per million). Hence, for all coal lifted by the washery the GCV must be specified to
verify the overall energetics of the process.

Station heat rate

The GGSSTP units have already achieved 2563.75 kcal/kWh for the FY 2011-12. The
operating at SHR of near 2500 kcal/kWh by GGSSTP station is achievable during
2012-2013 with operational optimization and a shifting a few medium term
measures to immediate.

GNDTP has already achieved a SHR of 2842.79 kcal/kWh during 2011-2012. GNDTP
is capable of achieving a SHR of 2825 kcal/kWh during 2012-2013 with operational
implementation and a few measures like replacement of cooling tower fills, etc.

General
The quantities and quality of fuel oil audited is in order.
vi

Sl.
No.

Recommendations
Time frame for
implementation,
months
Coal- Overall process
01 For the process of sampling, recording of quantity,
determination of fuel quality (GCV) a committee may be
formed composed of senior level officers at the level of SE
from Operations, Maintenance, Efficiency and Fuel along
with Chief Chemists who will supervise, perform random
quality checks and monitor the entire process of receipt
and reporting of coal quality and quantity received and
consumed in the TPS.
2
Coal-Recording (quantity)
02 The data file composed of gross weight, wagon nos and
tare weight may be made portable to the Fuel Section and
Accounts for archiving of the online data.
4
Fuel oil-Recording (quantity)
03 It is recommended that in GNDTP also, the wagon dip
level measurement may be taken as the primary
measurement for recording receipt quantity.
1
Coal Sampling
04 Sampling: The sampling of both receipt coal as well as
bunkered coal at any time of the day must be witnessed
by an officer level person since the sample determines the
basis for determining station heat rate and indirectly
relates the quantity of consumption. Periodic surprise
checks by committee members are essential. The random
table details of which wagon to take the sample must only
be told to the personnel at the last minute by the
Committee members.
2
05 Sampling improvement: Receipt coal sampling must
be only through automatic samplers under the supervision
of chemists. Chemists must witness the taking of the
samples. Automatic samples can go deep inside the
wagon whereas manual sampling has a tendency to
sample only on the under surface of the heap.
4
06 Bulk density determination: During reduction process
of coal samples coal density (by standard pot's weight
and volume method) should be measured so that general
record of coal density for particular coal colliery is
available.
1
Coal Consumption calculation & Verification of
stocks

07
Coal stock verification and reconciliation may be done
once a month.
1
vii
08
The coal stock verification must be in the presence of
the committee of senior level officers as indicated in
Section 2.1.1.

09 Belt weighers: Belt weighers may be installed for all
conveyors feeding to all units before entrance to the
bunkers so that unit wise coal consumption can be arrived
at. The unit wise coal consumption through belt weighers
is present only in GHTP, Lehra Mohabat. The same may
be installed in all units of GGSSTP, Ropar and in all units
of GNDTP, Bhatinda. Belt weighers have emerged as a
reliable and cost effective method of coal measurement.
The signals from the belt weighers give coal flow in t/h
and total flow and are of the re-setting type. The coal
flow from the coal yard to the units (total composite flow)
can be measured through these conveyors. In addition to
the total flow to the units from the belt weighers, the unit
wise consumption is required to be monitored to provide
the unit wise performance. Microprocessor based
interfaces for belt weighers needs to be installed or
multiple time totalizers.
6
Coal-Reporting (quantity)

10 The reporting of the reconciled consumption must be on
a monthly basis. Once the monthly stock and
consumption is reconciled and arrived at it must be final
and there must be no further reconciliation on a quarterly,
bi-annually or yearly basis.
1
Fuel oil- Reporting (quantity)
11 The reporting of the reconciled consumption must be on
a monthly basis.
1
Significance of the heating value of coal & oil
13 The drop in GCV between the receipt coal and bunkered
coal may be brought down to within 150 kcal/kg.
2
14 First-in-first out principle must be adopted for receipt
coals to ensure that certain lots do not weather for too
long.
1
15 The joint sampling provision in the FSA with CIL and other
colleries must be strictly implemented.
1
16 Introduction of additional fogging systems at various
locations in the coal yard as well as at the junction towers
to avoid spontaneous fires in coal stacks.
2
17 Use coal compactors for compaction of the coal heaps to
avoid spontaneous combustion and also to eliminate
seepage of water and loss of heating value of the coal.
3
Coal-Method of testing fuel quality at site
18 A uniform method of coal measurement may be adopted
for receipt and bunkered coal through GCV at equilibrated
conditions in a bomb calorimeter and adding the effect of

viii
surface moisture to the GCV at the rate of 145 kcal/kg per
1 %.
19 The consideration of effect of surface moisture on the
GCV for coal purchased from the collieries may be taken
up at the appropriate forum.

20 Periodic surprise checks of witness the GCV determination
for both receipt coal as well as bunkered coal in a bomb
calorimeter by committee members is essential.
1
21 Random samples of both receipt coal as well as bunkered
coal or a certain percentage of samples (5 to 10 %) as
well as third party testing samples may be sent to
independent, impartial truly third partly central
laboratories whose result must be final, such as the
following:
Central Institute of Mining & Fuel Research
(CIMFR) (Formerly CFRI), Nagpur
Central Institute of Mining & Fuel Research
(CIMFR) (Formerly CFRI), Dhanbad
CPRI, Bangalore

22 It is recommended to go for additional set of sample
primary and secondary crushing equipment including
pulverizers.
4
23 Presently, the three stations are having only bomb
calorimeter. Usually, in many other utilities there are
separate bomb calorimeters for Stage 1 & Stage 2. One
additional automatic multi-sample bomb calorimeter is
recommended for each station along with room air
conditioners for maintaining the temperature control of
the cooling water.
4
Basis for working out station heat rate (SHR)
24 The receipt coal GCV which is the basis for payments
must also be a part of returns filed to Regulatory
Commission. The computation of SHR can still be on the
basis of bunkered coal GCV but this value must not
deviate beyond 150 kcal/kg from the receipt coal GCV
value.
1
25 The computation of SHR must be on daily basis and the
monthly value must be based on daily average. The
annual value must be based on monthly average. The
reporting period for SHR must be monthly.
1
Fuel cost- PAYMENTS ASSOCIATED WITH FUEL
RELATED COSTS, REASONS FOR HIGH LOSS

26 An independent third party validation of the washery
energetics to map the yield as a function of the input raw
coal quality and washed coal quality is required.
1
27 The coal cost (landed price of coal at the TPS) can be
evaluated in three formats:
1
ix
Rs. /t = (coal cost + freight)/receipt weight
Rs./kWh = (coal cost + freight)/energy generated
Rs./Gcal = (coal cost + freight)/(receipt weight x GCV of
receipt coal) converted in Gcal to have it in comparable
number values.
Transit loss (TL)
28 Considering the above facts it is recommended to reduce
TL to CERC norms of 0.8 % for CIL & Washed coal. In
the case of washed coal it may be ensured that washed
coal is brought to equilibrium with respect to moisture
before being loaded onto the rakes. Coals with high
moisture loaded onto wagons likely to give rise to some
weight loss in transit must be stabilized before loading.
Also, since the majority of the coal (60-90 %) is coming
from Penam, the 0.8 % TL will be only for CIL coals.

Demmurages
29 It was noticed that in all the three TPS wagon positioning
equipment (inhaul-outhaul beetle chargers or side arm
chargers) are either not present or non in working
condition and the shunter is used for the same. Either
these may be repaired or side arm chargers may be
installed for all wagon tipplers.

30 Earlier wagon tippler systems were designed for 500 &
1000 t/h to empty a rake in 3 h. Present day systems are
available in 1600 t/h for faster disposal. The detailed
study of wagon tippling systems and coal conveying may
be studied for removal of existing bottlenecks and for
upgradation wherever it is critical.

31 Detailed study and upgradation of coal conveying system
especially at GNDTP which is using vibratory feeders.
3
32 Rail tracking system through GPS or alternative
technologies
3
33 Grab cranes for removal of stones from the wagon
tippler area is present in Ropar. The same may be
installed in Bhatinda and Lehra Mohabat

34 Rotary pneumatic or electrical hammers may be
used for crushing coal lumps at the wagon tippler in place
of manual hammering.
2
Penal overloading charges (POL)
35 Since loading is in the scope of Monnet, POL may be
brought into the scope of Monnet.
3
Costs associated with stones and non-fuel foreign
materials in coal

36 Frequent visits and inspections at the colliery loading end
is essential to minimize the receipt of stones
1
37 Random sampling of rakes from washeries and captive
mines in the presence of CIL officials may be undertaken
1
x
to sort out the issue with CIL and convince them that
stones are from CIL.
FSA with Coal India Ltd (CIL)- STUDY OF FUEL
SUPPLY AGREEMENTS (FSAs)

38 The joint witness of weighment and quality determination
at the sending end must be fully utilized for ensuring that
quality and quantity are in order.

1
39 The FSA has provisions for consideration of the total
moisture in the quality. The issue may be taken up with
appropriate authorities for consideration of the coal GCV
on the basis of inherent moisture plus the surface
moisture in the coal loaded at the sending end. In other
words the inherent moisture effect of 145 kcal/kg for 1 %
may be added to the presently determined GCV based on
equilibrated moisture.

FSA with captive mines (Panem)- STUDY OF FUEL
SUPPLY AGREEMENTS (FSAs)

40 One of the major factors involved in the payment to
Panem is the testing of coal samples at the TPS. Hence,
extra care must be exercised in sampling and
measurement of receipt coal quality as it seriously
impacts the fuel price.
1
41 The FSA with captive mines has provisions for
consideration of the total moisture in the quality. The
issue may be taken up with appropriate authorities for
consideration of the coal GCV on the basis of inherent
moisture plus the surface moisture in the coal loaded at
the sending end. In other words the inherent moisture
effect of145 kcal/kg for 1 % may be added to the
presently determined GCV based on equilibrated moisture.

FSA with coal washeries (Monnet Daniel, ACBL)-
STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

42 Since washed coal loading is entirely in the control of
Monnet, the POL must be the in the account of the
washery. This clause is recommended to be reviewed and
reverted to include the POL into the scope of the
washery.
3
Analysis of details of FSA:
43 GCV of both receipt and washed coal is to be determined,
documented and reported for each and every rake of coal
input and output of washery.
1
44 Keeping in mind the that the density differences between
coal, mineral matter and ash are low, the process yield
for various input coals must be got validated by an
independent third party agency such as CPRI or CFRI,
etc..
3
xi
45 The process energy efficiency map along with economics
for various input coal GCVs and washed coal GCVs must
be got validated by an independent third party agency
such as CPRI or CFRI, etc..
3
46 The telemetering system for on-line information of the in-
motion weighbridge readings of receipt coal received and
beneficiated coal loaded at PSPCL TPS is essential and
must be implemented at the earliest to provide authentic
tamper proof data on transit loss and total weighments of
both receipt coal and washed coal dispatched at the
Washery.
3
47 POL at the loading site of washed coal may be brought
fully into the scope of Monnet which is presently shared
50:50 by Monnet and PSPCL.
3
48 The coal loaded into the rakes must have equilibrium
moisture. This is to ensure that TL does not occur due to
non-equilibrium moisture in coal evaporating and coal
coming back to equilibrium moisture. Moisture related TL
must be in the scope of the washery.
1
49 The cost benefits of the washery process which is higher
by almost 22-28 % to coal from other sources, may be
reviewed. Apart from the clauses on quantity of washed
coal delivered, the quality process may be reviewed. The
coal lifted by the washery must be specified in terms of
GCV, ash and moisture. The sampling frequency of the
coal must be on the basis of similar to rake sampling, i.e.,
around 350 kg per 4000-4500 tonnes, i.e., 80 ppm (parts
per million).
1
Agreement with liasioning agent
50 The transit loss may be fully included in the scope of the
liasioning agent. The payments to the Liasion agent must
be linked with the actual coal cost (landed price: coal
+freight), ( i.e., Rs. 30/t x coal weight for the rake ) for
every 1 % TL.
Next agreement
xii

Recommendations for unloading infrastructure, coal
management in TPS & reduction of demmurages

Sl.
No.

Particulars
Time
frame
for
impleme
ntation,
months
Anticipated
benefits
Anticipated
investment,
Rs. (lakhs)
(3 stations)
01 Installation of in-haul out-
haul betel chargers/side
arm chargers in CHPs of the
three stations
4 Saving in
unloading
time
300
02 Use coal compactors for
compaction of the coal
heaps.
4 Minimizing
coal
deterioration
90
03 Introduction of fogging
systems at various locations
in the coal yard
4 Reduction of
pile
combustion
60
04 Rotary pneumatic or
electrical hammers for
crushing coal lumps
4 Process
requirement
9
05 Grab cranes for removal of
stones
6 Process
improvement
30
06 Total investment required Process
improvement
Rs. 489
lakhs
07 Anticipated savings for 3 TPS Rs.
197.15 lakhs
08 Pay back period 2.5 years

xiii

Recommendations for improvement in coal quantity
and quality measurement processes

Sl.
No.

Particulars
Time
frame for
implemen
tation,
months
Anticipated
benefits
Anticipated
investment,
Rs. (lakhs)
(3 stations)
01 Additional set of sample primary
and secondary crushing
equipment including pulverizers
4 GCV
determination
60
02 Software for online coal energy
management
4 Tracking of
coal losses
60
03 One additional automatic multi-
sample bomb calorimeter along
with room air conditioners
4 GCV
determination
60
04 Microwave or Ultrasonic bunker
level monitoring system with
digital system
6 Process
requirement
24
05 Automatic auger sampling of
coal from wagons in a rake
4 Process
requirement
60
06 Automatic online sampling of
conveyor coal going into
bunkers.
6 Process
requirement
45
improvements
Rs. 309 lakhs
08 Anticipated savings for 3 TPS

Rs. 30610
lakhs
09 Pay back period 1 month

xiv

Recommendations for TL reduction through monitoring
of railway movement

Sl.
No.
Particulars Time
frame for
implemen
tation,
months
Anticipated
benefits
Anticipated
investment,
Rs. (lakhs)
(3 stations)
01 Rail tracking system through
GPS or alternative technologies
6 Saving in
transit loss
60
improvements
Rs. 60 lakhs
03 Anticipated savings for 3 TPS Rs. 366.69
lakhs
04 Pay back period 2 months

Recommendations for reduction in stones in receipt
coal

Sl.
No.
Particulars Time
frame for
implemen
tation,
months
Anticipated
benefits
Anticipated
investment,
Rs. (lakhs)
(3 stations)
01 Taking up with Collieries for
reduction in stones
6 Increased
quantity of
coal
nil
02 Total investment required Increased
quantity of
coal
Nil
03 Anticipated savings for 3 TPS Rs. 545.75
lakhs
04 Pay back period Nil since no
investment
xv

CONTENTS

Page
Nos.
1.0 INTRODUCTION
1
1.1 Scope of the fuel study
1
1.2 Experimental work
2
2.0 RECORDING, SAMPLING, REPORTING, VERIFICATION AND
ACCOUNTING OF FUEL- OVERALL PROCESS, KEY CONSTRAINTS AND
ASSESSMENT OF EFFECTIVENESS
2
2.1 Overall process
2
2.2 Recording (quantity) 2
2.3 Sampling
5
2.4 Accounting
6
2.5 Consumption calculation & Verification of stocks
7
2.6 Auditing
9
2.7 Reporting (quantity) 9
3.0 METHOD OF TESTING OF COAL & FUEL OIL AT SITE, BASIS FOR
RELEASE OF PAYMENT & BASIS FOR WORKING OUT THE STATION HEAT
RATE
10
3.1 Significance of the heating value of coal & oil
10
3.2 Method of testing fuel quality at site
14
3.3 Release of payments
16
3.4 Basis for working out station heat rate (SHR)
16
4.0 PAYMENTS ASSOCIATED WITH FUEL RELATED COSTS, REASONS FOR
HIGH LOSS
17
4.1 Fuel cost
17
4.2 Freight
19
4.3 Transit loss
19
4.4 Coal handling contract charges
24
4.5 Demmurages
24
4.6 Siding charges
27
4.7 Penal overloading charges (POL) 27
4.8 Commission to liasoning agents
28
4.9 Payment to railway staff
28
xvi

4.10 Coal stock maintenance cost
28
4.11 Weigh bridge labour cost
29
4.12 Costs associated with stones and non fuel foreign
materials in coal
29
4.13 Status of rebates offered by railways or other agencies
30
5.0 STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)
30
5.1 FSA with Coal India Ltd (CIL)
30
5.2 FSA with captive mines (Panem)
31
5.3 FSA with coal washeries (Monnet Daniel)
33
5.4 Agreement with liasoning agent
41
6.0 METHODOLOGY OF COMPUTING THE COST OF FUEL BEING PASSED
ONTO THE CUSTOMERS AS AN UNCONTROLLABLE COST
41
7.0 COMPARISON OF FUEL PARAMTERS WITH NATIONAL
/INTERNATIONAL STANDARDS.
42
8.0 CONCLUSIONS
43
REFERENCES
46
Annexure 1: Figures, graphs and photographs
48
Annexure 2: Tables and charts
79
Annexure 3: Comments by PSPCL
129
Annexure 4: CPRI replies to comments by PSPCL
153
Annexure 5: CPRI comments on Discussion points raised by PSPCL
175

xvii

Abbreviations/Nomenclature
ABT Availability based tariff
AC Alternating current
ADB Air dried basis (of specifying GCV)
AFB As fired basis (of specifying GCV)
C & I Control and instrumentation
CA Chemical Analysis
CC Carrying capacity
CHP Coal handling plant
ERC Energy regulatory commission
ERP Enterprise resource package
FIFO First in first out
FO Furnace oil
GCV Gross calorific value (kcal/kg or MJ/kg)
GoI Govt. of India
GRN Goods receipt note
H Time period block (hours)
HCV Higher calorific or heating value (kcal/kg or MJ/kg)=GCV
HGI Hardgrove Index of coal
KPI Key performance indicators
LDO Light diesel oil
Max. Maximum
MCR Maximum continuous rating of the unit
Min. Minimum
PLF Plant load factor (%)
POL Penal overloading of wagons beyond their carrying capacity
R & M Renovation and modernization
ROM Run of mine (open cast mining)
RR Railway receipt
SAIDI System average interruption duration index
SAIFI System average interruption frequency index
SFC Specific coal consumption (kg/kWh = t/MWh)
SH Superheater
SHR Station heat rate ((kcal/kWh)
SOC Secondary specific fuel oil consumption (ml/kWh)
SR Steaming rate (t of steam /t of coal)
SSC Specific steam consumption (kcal/kWh=t/MWh
T Temperature (
0
C)
TL Transit loss
TPS Thermal power station
UHR Unit heat rate (kcal/kWh)
v Velocity (m/s)
Greek letters
Difference
Efficiency (dimensionless or %)
1

1.0 INTRODUCTION
The objective of the study is the independent fuel audit for PSPCL stations, viz.,
GGSSTP, Ropar, GNDTP, Bhatinda, and GHTP, Lehra Mohabat and suggestions for
improvements.

1.1 Scope of the heat rate study

The scope of the fuel audit study is as follows:

1. Study system of recording, sampling, measurement, reporting, verification &
accounting for coal and Oil receipts, consumption and stocking as inventory.

2. Identify key constraints with the current fuel accounting system across
process, technology, skills and facilities.

3. Assess effectiveness of existing coal and oil tracking and accounting system
and practices.

4. Study the Fuel supply agreements and the relevant regulatory orders /
directions / rules and regulations and evaluate whether there is any deviation and
procedural gaps.

5. Measure the Gap between billed quality and quantity vis--vis actual receipt
of coal and oil.

6. Ascertain the loss and assess reasons for high losses, if any.

7. Method of Testing of coal at site and at plant and basis for release of
payment.

8. Treatment of stones or any foreign material in the coal.

9. Calorific value based on which coal consumption is worked out i.e. Gross or
fired and the extent of difference between the two.

10. Various components, including demurrage, loaded on the fuel cost along with
their justification.

11. Status of availing the rebate being offered by Railways or any other agency.

12. Comparison of various fuel consumption parameters with national
(comparison with NTPC/Private Sector Thermal Plants) / international standards.

13. Submit report on findings, along with recommendations for proper fuel
accounting.

2

14. To check more precisely the methodology regarding computation of cost of
fuel being passed on to the consumers as an uncontrollable

1.2 Experimental work

The field work of the performance tests and measurements was carried out as per
scope during February 2012. The observations, results of study and discussions are
given in the following sections.

2.0 RECORDING, SAMPLING, REPORTING,
VERIFICATION AND ACCOUNTING OF FUEL- OVERALL
PROCESS, KEY CONSTRAINTS AND ASSESSMENT OF
EFFECTIVENESS

2.1 Overall process
2.1.1 Coal

The overall process is described in detail in each of the following sections.

Recommendation: For the process of sampling, recording of quantity,
determination of fuel quality (GCV) a committee may be formed composed of senior
level officers at the level of SE from Operations, Maintenance, Efficiency and Fuel
along with Chief Chemists who will supervise, perform random quality checks and
monitor the entire process of receipt and reporting of coal quality and quantity
received and consumed in the TPS.

2.1.2 Fuel oil

The fuel oil receipt quantity is measured at the TPS end and compared with the RR.

2.2 Recording (quantity)
2.2.1 Coal

The present method of measurement of transit loss is as follows:

Transit Loss = [Net RR (railway receipt) Weight Net TPS Weight]

Net TPS Weight = [Gross Weight Tare Weight]

The wagon gross weights are determined through in-motion weigh bridges by
passing the rake at a speed of 10-15 km/h over the weigh bridge. The weight of
the each loaded wagon which passes on the track is automatically recorded in
3

the computer of in-motion weighbridge installed at the entry point of Plant.
The net weights are determined by either sending the empty rake over the weigh
bridge or by taking the stencil tare weight of the individual wagons (marked on each
wagon).

The weight of the coal received is recorded on electronic weigh bridge wagons
wise/rake wise and print outs are taken after feeding the wagon no and the tare
weight of each wagon. Shift staff posted in the Coal handling plant prepares a
consolidated receipt (CR notes).

The weight measurement process is as follows:

i. The coal is weighed (gross) at the mine or sending end through in-motion
weigh bridges and the weight is known through the rail way receipt (RR).

ii. The coal is again weighed (gross) at the receiving end at the power
station through in-motion weigh bridges at the coal yard.

iii. The tare weights are generally determined through the stencil weight of
the individual wagons but can also be determined through running the
empty train over the in-motion weigh bridge. Generally the stencil weight
is the accepted mode of tare weight.

iv. The net weight of the coal is determined by deducting the tare weight of
individual wagon from the gross weight recorded in the in-motion weigh
bridge. The sum total of the net weights of all the wagons gives the
weight of the rake for which payments are made.

v. The Fuel Section tallies the TPS net weight with the RR weight and
determines the transit loss.

vi. In case of washed, imported or captive mine coal since the weighment is
at receiving end only. Transit loss is not calculated.

Sl.
No.
Mine
end
TPS
end
Calculation of transit loss
01 Availability of
measurement
yes yes Yes
02 yes no TPS weight is taken as RR weight.
No transit loss.
03 no yes Sum of CC (Carrying capacity) of
wagons for payment
04 no no Coal weight = Sum of [CC (carrying
capacity) stencil weight of wagon]

4

Sl.
No.
Coal source Basis for payment
01 Coal India Ltd. Sending end weight only (RR) or in the
absence of sending end weight sum of
Carrying capacity of wagons. Sometimes en
route weight is taken but not for the
purpose of payment.
02 Captive mines
(Panem)
Receiving end weight. Sending end weight
is insignificant.
03 Washeries
(MDL, ACBL)
Receiving end weight. Sending end weight
is not considered since Performance
Guarantee test is not conducted.

Observation and recording: The coal recording system at the three TPS are in
order and are tamper proof. The system is sealed by representatives of all the
stake holders. The system is also having redundant power supply from three
sources and the chances of the system not recording under power failure is quite
remote.

Recommendation: The data file composed of gross weight, wagon nos and tare
weight may be made portable to the Fuel Section and Accounts for archiving of the
online data.

2.2.2 Fuel oil

The weight measurement process is either through in-motion weigh bridges (weight
measurement) or through dip level measurement (volumetric measurement) as
follows:

i. The fuel oil is weighed (gross) at the refinery or sending end through in-
motion weigh bridges and the weight is known through the rail way
receipt (RR). Alternatively, dip level at the pouring temperature of the oil
is taken at the sending end and recorded in the RR. Both systems are in
vogue.

ii. The fuel oil is again weighed (gross) at the receiving end at the power
station through in-motion weigh bridges at the fuel oil yard for the case of
sending end weight being through in-motion weigh bridges.

iii. In the event of dip level measurement the dip level is taken for individual
wagons and corrected to the temperature and the final volume of each
wagon is determined.

iv. The tare weights (only for the in-motion weight measurement) are
generally determined through the stencil weight of the individual wagons
but can also be determined through running the empty train over the in-
5

motion weigh bridge. Generally the stencil weight is the accepted mode of
tare weight. For the case of sending end dip measurement this is not
relevant.

v. The net weight of the fuel oil is determined by deducting the tare weight
of individual wagon from the gross weight recorded in the in-motion weigh
bridge. The sum total of the net weights of all the wagons gives the
weight of the rake for which payments are made.

vi. The Fuel Section tallies the TPS net weight with the RR weight and
determines the payment on the basis of the receiving end weight only. In
the event of dip level measurement, the Fuel section tallies the sending
end dip levels of individual wagons with corresponding dip levels taken at
the TPS and determines the basis for payment at the receiving end volume
only.

The instrumentation for measurement of oil receipt and consumption is adequate.
The tank level measurement has an accuracy of 0.5 %.

Observation: The system of measuring the receipt oil is in order in all the three
stations where the dip level of the individual tankers is taken. In the case of GNDTP,
the oil level of the receiving tank in the TPS is taken.

Recommendation: It is recommended that in GNDTP also, the wagon dip level
measurement may be taken as the primary measurement for recording receipt
quantity.

2.3 Sampling
2.3.1 Coal

Receipt coal:
The process for sampling is given in Tables 1 & 2 of Annex 2. It must be
remembered at a rake consists of around 4000-4500 tonnes of coal so the sample
size must be 350 kg drawn from at least 15 different wagons. The observations and
recommendations on the process are as follows:

Bunkered coal:
The process for sampling is given in Tables 3 of Annex 2. The observations and
recommendations on the process are as follows:

Recommendation: Sampling: The sampling of both receipt coal as well as
bunkered coal at any time of the day must be witnessed by an officer level person
since the sample determines the basis for determining station heat rate and
indirectly relates the quantity of consumption. Periodic surprise checks by committee
members are essential. The random table details of which wagon to take the
6

sample must only be told to the personnel at the last minute by the Committee
members.

Recommendation: Sampling improvement: Receipt coal sampling must be only
through automatic samplers under the supervision of chemists. Chemists must
witness the taking of the samples. Automatic samples can go deep inside the wagon
whereas manual sampling has a tendency to sample only on the undersurface of the
heap.

Recommendation: Bulk density determination: During reduction process of
coal samples coal density (by standard pot's weight and volume method) should be
measured so that general record of coal density for particular coal colliery is
available.

2.3.2 Fuel oil

In the case of fuel oil sampling of fuel oil is not being done as there is very little
variation in the fuel oil GCV.

2.4 Accounting
2.4.1 Coal

The weight of the coal received is recorded on electronic weigh bridge wagons
wise/rake wise and print outs are taken. Shift staff posted in the Coal handling
plant prepares a consolidated receipt (CR notes). On receipt of coal rake, wagon
details such as Wagon No., CC Weight, Tare Weight, Colliery, Coal Company,
consigned or diverted are noted down and four copies of Coal Receipt (CR) Note are
prepared. One copy of CR Note is handed over to the In-Motion-Weigh-Bridge
staff, second copy to Chemical Department for sampling, third copy to Railway
Department and fourth copy is retained by Fuel Cell.

On receipt of computerized CR note, the details of wagon are tallied with the hand
written CR note and then sent to Computer Cell for punching. This data is further
recorded manually on rake register and then fed to computer after matching it with
the Railway receipt generated from the loading station. Then goods receipt note
(GRN) is prepared on monthly basis. From this data various reports are generated.
On receipt of check list from the computer cell final CR note is prepared.

All the coal receipt data is maintained by the three TPS on daily basis,
consolidated on monthly basis & then on yearly basis. All the data is available
with TPS. A detailed study of the process indicates that the system of coal
quantity recording and accounting is in order. The Commercial Accounting
System, Vol. III (Fuel manual) is in order.

7

2.4.2 Fuel oil

The oil receipt basis data is recorded, as and when the oil rake arrives. The
RR and the receipt records are used as basis for payment. Then the GRN of
the quantity received is made and the quantity is taken on the stock card. The dip is
recorded in dip register. The copies of the receipt records go to the fuel cell
from where it will go the Accounts for payment.

2.5 Consumption calculation & Verification of stocks
2.5.1 Coal

The daily consumption of coal is recorded through belt weighers in Lehra
Mohabat. In other stations, the belt weighers are not present for daily
consumption measurement and the same is arrived at based on assumed
value of coal factor (specific coal consumption) multiplied by the energy
generated.

Coal consumption = [Specific coal consumption, kg/kWh] x [Generation, kWh]

= [{Heat rate, kcal/kWh}/{GCV, kcal/kg}] x [Generation, kWh]

In the absence of coal measurements to individual units, it is not possible to know
the specific fuel consumption which is the basis for the heat consumption of the unit.
The present system is highly inadequate and not sufficiently sensitive to unit
performance. Hence, the estimated specific coal consumption does not reflect on the
realistic coal consumption of any particular unit in question. The present method
gives only station coal consumption and does not give sensitivity to unit coal
consumption.

The monthly coal consumption is arrived at by the sum total of the daily
consumption. The quarterly or annual consumption is arrived at by taking the
sum of the monthly consumptions and tallying it with the physical verified coal
stock on hand.

Physical verification of coal in the coal storage yard is done with dumpy level
method by civil department at the end of each month and quarterly by
Technical Audit, PSPCL, Patiala. The coal stock is generally verified quarterly.

Recommendation: Coal stock verification and reconciliation may be done
once a month.

Recommendation: The coal stock verification must be in the presence of
the committee of senior level officers as indicated in Section 2.1.1.

8

Recommendation: Belt weighers: Belt weighers may be installed for all
conveyors feeding to all units before entrance to the bunkers so that unit wise coal
consumption can be arrived at. The unit wise coal consumption through belt
weighers is present only in GHTP, Lehra Mohabat. The same may be installed in all
units of GGSSTP, Ropar and in all units of GNDTP, Bhatinda. Belt weighers have
emerged as a reliable and cost effective method of coal measurement. The signals
from the belt weighers give coal flow in t/h and total flow and are of the re-setting
type. The coal flow from the coal yard to the units (total composite flow) can be
measured through these conveyors. In addition to the total flow to the units from
the belt weighers, the unit wise consumption is required to be monitored to provide
the unit wise performance. Microprocessor based interfaces for belt weighers needs
to be installed or multiple time totalizers. The specification of belt weighters is
given in Table 4 (see Annex 2).

Multiple Time totalizers: The belt weighers does not give unit specific coal
measurement which is essential for accounting purposes. The arrangement for unit
wise coal consumption is essential. This is possible by providing a system of
monitoring the time elapsed by a belt over a given bunker. Unit wise bunkered coal
data can be available after installation of timed totalized belt weighers.

Bunker level measurement: Coal level in the bunker is presently recorded
manually. It is a process wherein the bunker levels are conveyed by manual
observation from the bunker area to the Coal handling plant and from there it is
relayed to the control room over telephone. This manual information relay system is
obsolete and does not give quantitative data on the bunker level. Further it gives
data only when the persons inspects it and does not give the exact height of the coal
stack. Microwave or Ultrasonic bunker level monitoring system with digital
data output, communication of data to central server or control room.

On line coal energy management: Software is to be in place for online
coal energy management in the plant. The software must input data from the
various field instruments for coal receipt from various sources and coal consumption
at various bunkers. This must also compute the coal consumption, heat
consumption, heat rate, etc., at various points, on line.

2.5.2 Fuel oil

The daily consumption of oil is calculated from the dip data for all the units and at
the end of month total oil consumption & balances are recorded.

Physical verification of oil in the oil storage yard is done quarterly by taking
dip of oil manually by Technical Audit, PSPCL, Patiala, whereas daily oil
consumption is measured by taking dip of oils tanks which are in service by
taking dip manually by fuel cell and operation circle. Since the measurement
process is based on the dip level the possibilities of errors in the stock
calculations are low.

9

Observation: The oil stock verification at quarterly intervals is in order.

2.6 Auditing
2.6.1 Coal

The auditing of the coal quantity on the basis of bills for payments, is being done by
internal auditors and accounts. The audit is also be done by external auditors. A
detailed study of the process indicates that it is in order.

2.6.2 Fuel oil

The auditing of the fuel oil quantity on the basis of bills for payments, is being done
by internal auditors and accounts in the same manner as for coal. The audit is also
be done by external auditors. A detailed study of the process from the receipt till the
reporting indicates that it is in order.

2.7 Reporting (quantity)

2.7.1 Coal

The coal consumption reported to the Regulatory Commission is on the basis of the
consumption which is the receipt minus the stock on hand (physical verification).
The coal consumption is on the basis of receipts minus the stock on hand which is
arrived at from the verification report of Technical audit from Patiala. This coal
consumption is basis for computation of the heat rate. Audit of the process indicates
that the process is in order so far as the accounting of the numbers or quantities is
concerned.

Observation: The stock on hand and the consumption calculations must be
essentially be on a monthly basis and any reconciliation must be on a monthly basis
only and not on a quarterly basis.

Recommendation: The reporting of the reconciled consumption must be on a
monthly basis. Once the monthly stock and consumption is reconciled and arrived at
it must be final and there must be no further reconciliation on a quarterly, bi-
annually or yearly basis.

2.7.2 Fuel oil

The fuel oil consumption reported to the Regulatory Commission is on the basis of
the consumption which is the receipt minus the stock on hand (physical verification).
The fuel oil consumption is on the basis of receipts minus the stock on hand is which
is arrived at from the verification report of Technical audit from Patiala. Audit of the
10

process indicates that the process is in order. Since all measurements are based on
dip levels which are accurate the margin for erroneous reporting is low.

Recommendation: The reporting of the reconciled consumption must be on a
monthly basis.

3.0 METHOD OF TESTING OF COAL & FUEL OIL AT
SITE, BASIS FOR RELEASE OF PAYMENT & BASIS FOR
WORKING OUT THE STATION HEAT RATE

3.1 Significance of the heating value of coal & oil

The significance of the heating value in the context of coal consumption is as
follows:
generated Energy
GCV x n consumptio Coal
Rate Heat Station

The heating value determines the coal consumption as well as the station heat rate.
The measurement of GCV is as important as the coal quantity measurement as it
directly affects the coal consumption and generation cost on account of coal.

In the TPS context three heating values are of importance:
i. UHV: Useful heating value -a commercial heating value for payment
purposes.
ii. GCV: Gross heating value of the received coal sampled at the point of
unloading.
iii. GCV: Gross heating value of the coal fed into the boiler and sampled
either at the conveyor belt to the bunker or at the coal feeder.

Accordingly, the heating value of coal is generally determined in most utilities for the
following three cases:

i. UHV (kcal/kg) of Coal received from collieries: rake wise, colliery wise,
weekly and month wise data

ii. GCV (receipt coal) (kcal/kg) of Coal received from collieries: rake
wise, colliery wise, weekly and month wise data.

iii. GCV (fired coal) (kcal/kg) of Coal being used in the units: shift wise,
unit wise, stage wise and month wise data

For payment purposes a term called as Useful heating value (UHV) is used. For the
purpose of determining the heat content in the coal, the GCV is used. GCV is a
nomenclature which is equivalent of Higher heating value, Gross heating value and
Higher calorific value.
11

UHV and GCV though connected are different. UHV is determined by measuring the
ash and moisture contents. GCV is determined by proximate analysis as well as by
bomb calorimeter. GCV is higher than UHV as per the data given by the coal
Ministry.

Coals received from collieries are analyzed for their Useful heating value (UHV), a
factor coined by GoI, which is the basis for payments to the coal supplying agencies.
The UHV & GCV as per GoI is given in Table 5 and the band width of variation
permissible under a given UHV & GCV grade is given in Table 6.

In the TPS context three interconnected heating values are of importance:

i. UHV only for commercial payments and to reconcile sending end and
receiving end heating rate. The receiving end UHV must not be lower
than 150 kcal/kg of the sending end UHV.

ii. GCV (air dried basis) of the receipt coal at the coal yard and sampled
at the receiving point. This is connected to the UHV by the formula
given by Coal ministry.

GCV = A
0
+ (A
1
x UHV)

Formula A
O
A
1
Reference
1 2111 0.6812 [1]
2 2437.5 0.6679 [2]
3 1977.5 0.5901 [3]

In the present case the average of the three values is taken.

iii. GCV (air dried basis) of the coal fired into the bunkers and finally into
the boilers. This is sampled at the conveyor belts just prior to the
bunker or at the coal feeder.

The GCV of both receipt coal as well as bunkered coal can be either represented as
either Air dried basis (ADB) where the GCV is determined by drying the sample in
air or as As fired basis (AFB) wherein the moisture effect is subtracted. The
different between the two is around 280-350 kcal/kg and the connection between
the two is [4]:

[GCV (ADB)] = -137.32 + 0.9561 [GCV (AFB)]

In the present case both GCVs (receipt and bunkered) are represented as ADBs.

In either of the cases, the magnitude of the difference between the receipt coal GCV
and bunkered coal GCV should be within 150 kcal/kg of the receipt coal GCV. The
drop or difference between the receipt coal GCV and the bunkered coal GCV
12

indicates the drop in heating value at the coal handling plant of the TPS. Cost wise it
is tantamount to loss of quantity of fuel.

According to a technical study by NTPC, R & D, the maximum drop in GCV of coal in
a coal yard is around 600 kcal/kg in an year [3]. The drop of GCV in the coal yard
according to one study is given in Table 7 [5]. According to another study in the
Illionis region [6] is in-between 1.4 %/year (70 kcal/kg/year) in winter like weather
and 2.1 %/year (105 kcal/kg/year) in summer like weather.
In the present case, the number of days of storage is varying from 9 to 30 and
hence the drop in GCV should not exceed a value of 150 kcal/kg. Table 8 gives the
theoretical and actual drop of the GCVs at the receipt and bunker. Table 9 gives the
annual drops for the three stations (GNDTP has not provided).

Figure 1 & 2 gives the variation in GCV drop during the past three years.

GGSSTP, Ropar
Year
Receipt
coal GCV
kcal/kg
Bunkered coal
GCV, kcal/kg
Actual drop,
kcal/kg
2009-2010 4900.7 3967 933.7
2010-2011 4931.7 3950 981.7
2011-2012 4929.1 3941 988.1

Observation: The decrease in GCV of the bunkered coal could be due to over
valuation of receipt coal.

The analysis of GCV drop in other utilities is given in Table 10.

Observations by MERC regarding stacking loss in Coal yard:

It is hereby concluded that there is no methodology for computing
stacking loss and the best available as on date is the draft CERC/MoP
norm of reducing receipt coal GCV by 150 kcal/kg. Hence it is
recommended to use this method for computing the stacking loss.

GHTP, Lehra Mohabat
Year
Receipt coal
GCV kcal/kg
Bunkered coal
GCV, kcal/kg
Actual drop,
kcal/kg
2009-2010
4913.6
4077
836.6
2010-2011
4734.6
4022
712.6
2011-2012
4750.1
3932
818.1
13

According to the Draft MoP report Operational Norms for Thermal
Generation Tariff, 1999:

B-1.7 Gross calorific Value or GCV - The heat produced in kCal by complete
combustion of one kg. of solid fuel or liquid fuel or one standard cubic metre (Sm
3
)
of gaseous fuel, as per IS: 1350 (Part-II) or IS:1448 (P : 6) as the case may be.

Explanation : In case of coal or lignite fuel, the GCV of the fuel as received
shall be reduced by 100 kcal/kg to arrive at the GCV of the fuel as fired for
the purpose of determination of the fuel consumption.

The bunkered coal GCV can be arrived at by reducing receipt coal GCV by 100
kcal/kg or 1 % moisture which works out to 150 kcal/kg.

According to the recent MERC judgment for 2012-2013:
3.2.41. As evident from the above Table, the variations in Calorific Value of coal is
significantly higher than the 150 kcal/kg mentioned above, and in some cases
higher than 500 kcal/kg, and therefore, the Commission directs MSPGCL
to constitute a Committee to investigate the huge variations in
'bunkered' Calorific Value of blended coal and weighted average
Calorific Value of blended coal on 'as received' basis and submit its Report
with recommendations and action plan to limit such stacking loss to
150 kcal/kwh within six months from the date of issuing of this Order.

Recommendation: The drop in GCV between the receipt coal and bunkered coal
may be brought down to within 150 kcal/kg. The measurement of receipt coal may
be introduced and compared with GCV of bunkered coal which is already being
measured. Both measurements may be made on equilibrated basis and the effect of
surface moisture may be added at 145 kcal/kg for 1 % by determining the total
moisture along with the original sample.

After the visit to the three stations, the proposed methods of reduction of coal yard
losses are given in Table 11.

Recommendation: First-in-first out principle must be adopted for receipt coals to
ensure that certain lots do not weather for too long.
Recommendation: The joint sampling provision in the FSA with CIL and other
collieries must be strictly implemented.
Recommendation: Introduction of additional fogging systems at various
locations in the coal yard as well as at the junction towers to avoid spontaneous fires
in coal stacks.
Recommendation: Use coal compactors for compaction of the coal heaps to avoid
spontaneous combustion and also to eliminate seepage of water and loss of heating
value of the coal. [8]
GCV based payment to Coal India: GCV based payment has come into effect.
From now onwards the GCV of receipt coal will be available in place of the earlier
UHV. Also, the bandwidth of allowable variation in a grade is reduced as compared
to the earlier grading. The quantity weighted average GCV of the receipt coal need
14

to be worked out on monthly basis. Similarly the quantity weighted average of GCV
of bunkered coal need to be worked out on monthly basis. The monthly average
GCV of both raw and bunkered coal need to be reported. The infrastructure of GCV
measurement needs to be improved as per the recommendations given above.

Figures 3-5 gives the effect of reduction in GCV difference on coal consumption for
GGSSTP, GNDTP and GHTP respectively.

Figures 6-8 gives the effect of reduction in GCV difference on saving in coal
consumption for GGSSTP, GNDTP and GHTP respectively.

Figures 9-11 gives the effect of reduction in GCV difference on coal cost+freight for
GGSSTP, GNDTP and GHTP respectively.

Figures 12-14 gives the effect of reduction in GCV difference on saving in coal+
freight for GGSSTP, GNDTP and GHTP respectively.

Figures 15-17 gives the effect reduction in GCV difference on energy cost (fuel cost
component) for GGSSTP, GNDTP and GHTP respectively.

Figures 18-20 gives the effect if reduction in GCV difference on energy cost (total
generating cost) for GGSTP, GNDTP and GHTP respectively.

Figures 21-23 gives the effect of reduction in GCV difference on energy cost (saving
in total generating cost) for GGSSTP, GNDTP and GHTP respectively. It can be seen
that the anticipated savings are as follows: GGSSTP: Rs. 213.7187 crores; GNDTP:
Rs. 54.3715 crores and GHTP: Rs. 49.1057 crores, totalling to Rs. 317.196 crores in
all for PSPCL.
3.2 Method of testing fuel quality at site

3.2.1 Coal

Receipt coal: The method of sample preparation from the sample collected at the
coal rake (wagons) is given in Table 12 and the methodology for testing for
determining UHV is given in Table 13.

Bunkered coal: The method of sample preparation from the sample collected at
the conveyor belt prior to feeding into the bunkers (storage prior to feeding into the
mills and finally into the boilers) is given in Table 14 and the methodology for testing
for determining GHV is given in Table 15.

The balances (accuracy: 0.1 mg) and ovens (accuracy: 3.0 C) are of the
required accuracy and reliability for determination of UHV and GCV by proximate
analysis. The accuracy of proximate analysis is 0.5 %. The equipment in all stations
have a valid calibration certificate.
15

The bomb calorimeter [accuracy: 0.1 % (4 to 5 kcal/kg) with a thermometer
accuracy of 0.0001 C] is of the required accuracy and reliability for determination of
GCV of coal samples. The equipment in all stations has a valid calibration certificate.

Recommendation:
The receipt coal GCV may be determined on equilibrated basis. The total
moisture may also be determined for the same sample and the effect of
moisture may be added to the receipt coal GCV at the rate of 145 kcal/kg for
1% increase in surface moisture.
The bunkered coal GCV may also be determined on equilibrated basis. The
total moisture may also be determined for the same sample and the effect of
moisture may be added to the bunkered coal GCV at the rate of 145 kcal/kg
for 1 % increase in surface moisture.
The difference between receipt and bunkered coal GCV may be worked out
and minimized to be within 150 kcal/kg.

Recommendation: Periodic surprise checks of witness the GCV determination for
both receipt coal as well as bunkered coal in a bomb calorimeter by committee
members is essential.

Recommendation: Random samples of both receipt coal as well as bunkered coal
or a certain percentage of samples (5 to 10 %) as well as third party testing samples
may be sent to independent, impartial truly third partly central laboratories whose
result must be final, such as the following:
Central Institute of Mining & Fuel Research (CIMFR) (formerly CFRI), Nagpur
Central Institute of Mining & Fuel Research (CIMFR) (formerly CFRI),
Dhanbad
CPRI, Bangalore

The list of truly neutral third party laboratories in Northern India is given in Table 16.

Observation: The sample preparation equipment in all three stations is not
confirming the BIS. The sample crushers are not crushing the coals of the required
size. Sample preparation improvement: Sample preparation must be through
standard crushing and pulverizing equipment.

Recommendation: It is recommended to go for additional set of sample primary
and secondary crushing equipment including pulverizers.

Recommendation: Presently, the three stations are having only bomb calorimeter.
Usually, in many other utilities there are separate bomb calorimeters for Stage 1 &
Stage 2. One additional automatic multi-sample bomb calorimeter is recommended
for each station along with room air conditioners for maintaining the temperature
control of the cooling water.

16

3.2.2 Fuel oil

Fuel oil is generally not measured for GCV and the GCV is taken as constant.
Furnace oil GCV is taken as 10,000 kcal/kg or 9,600 kcal/l. The density of fuel oil is
taken as 0.88 kg/m
3
.

The GCV of LDO is given by the following formula:

GCV = 12,400 (2100 x d
2
)

Where d is the density of the oil in kcal/kg. The GCV of LDO works out to 9,300
kcal/l. The mix of oil normally used is 72 % Furnace oil and 28 % LDO. The GCV of
the mixture is taken as 9,500 kcal/l.

Since the contribution of 1 ml/kWh is hardly 9.5 kcal, the process is in order.

3.3 Release of payments

The release of payment is as follows:
i. For Coal India Ltd., advance payment is made and settled against quality.
There is no settlement issue regarding the quantity.
ii. For washeries payment is made based on quantity; and ash, moisture content
determined at the TPS end and not on UHV.
iii. For captive mines the payment is on the basis of quantity and quality both
determined at the TPS end.

3.4 Basis for working out station heat rate (SHR)

generated Energy
GCV x n consumptio Coal
Rate Heat Station

Presently the quarterly coal consumption is considered for computation of SHR. The
bunker coal GCV is considered for the SHR. The bunkered coal GCV, presently
reported is independent of the receipt coal GCV which is the basis for payment for
the coal purchased. The receipt coal GCV is not reported to the Regulatory
Commission. The bunkered coal GCV is related to the receipt coal GCV. Generally the
bunkered coal GCV must not be lower than 150 kcal/kg of the receipt coal GCV to
take care of the stacking loss.

Recommendation: The receipt coal GCV which is the basis for payments must also
be a part of returns filed to Regulatory Commission. The computation of SHR can
still be on the basis of bunkered coal GCV but this value must not deviate beyond
150 kcal/kg from the receipt coal GCV value.

17

Recommendation: The computation of SHR must be on daily basis and the
monthly value must be based on daily average. The annual value must be based on
monthly average. The reporting period for SHR must be monthly.

4.0 PAYMENTS ASSOCIATED WITH FUEL RELATED
COSTS, REASONS FOR HIGH LOSS

4.1 Fuel cost
The break up of percentage of the sourcing of coal is given in Table 17. It is seen
that the major percentage coal is from Panem captive mines (60 % at GGSSTP, 79
% at GHTP and 90 % at GNDTP).

Figure 24-26 gives the percentage of coal receipt from various sources for 2011-
2012.
The overall cost of generating power is given in Table 18 for the three stations. It is
seen that the major cost of generation (80-86 %) is accounted for by coal.

The unit fuel cost (Rs./t, Paise/kWh) is given in Table 19 for the three stations. It
can be seen that cost of coal and freight is the major cost accounting for 97-99 % of
the cost.

The primary cost is the fuel cost. Since the Coal India billing is on the basis of the
sending end quantity and quality, the receiving end quality and quantity is not
connected with the payment. In the case of the washeries and captive mines the
receiving end quantity as well as quality are of importance for the payments.

The unit cost of coal can be compared with the index of Rs./Gcal based on the
receipt coal GCV. This is a more appropriate index because coal is valued based on
the heat it generate rather than on their mass basis.

The source wise cost of coal, cost of fuel (Rs./t) and cost of heat from coal
(Rs./Gcal) (based on receipt coal GCV) is given in Table 20. The values for 2011-12
are reproduced here:

GGSSTP
GCV
(kcal/kg)
Coal
cost
(Rs./t)
Freight
cost
(Rs./t)
Landed cost
(Rs./t)
Cost of
Energy
(Rs./Gcal)
ARYAN 4639.7 1664.2 2051.8 (*) 3716.1 800.9
CCL
4617.2 1422.2 1463.6 2885.8 625.0
MDL
4712.0 1777.2 1820.2 3597.4 763.4
PANEM
4979.1 1227.4 1662.7 2890.2 580.5
SECL
5393.4 2183.3 1333.6 3516.8 652.1
18

GHTP
GCV
(kcal/kg)
Coal
cost
(Rs./t)
Freight
cost
(Rs./t)
Landed cost
(Rs./t)
Cost of
Energy
(Rs./Gcal)
CCL 4632.8 1386.1 1496.1 2882.2 622.5
MONNET
4695.6 1630.0 1884.1 (*) 3514.1 748.4
PANNAM
4785.7 1073.7 1603.6 2677.2 559.4
DVT IN
4679.6 1166.0 1606.5 2772.5 588.4
GRAND
TOTAL
4747.4 1135.0 101135.0 2850.4 596.4
GNDTP
GCV
(kcal/kg)
Coal
cost
(Rs./t)
Freight
cost
(Rs./t)
Landed cost
(Rs./t)
Cost of
Energy
(Rs./Gcal)
CCL
4561.4 1191.2 1665.2 2856.4 626.0
PANNEM
4957.9 1171.0 1616.9 2788.0 562.0
MONNET
4670.2 1656.7 2053.2 (*) 3710.0 796.4
GRAND
TOTAL
4929.5 1204.3 1613.8 2818.1 570.3
(*) The cost is on the basis of the original coal supplied from coal India for a unit
quantity of washed coal and not actual freight cost.

The cost of Pannem mines is around 7-10 % cheaper than CCCL coal. This is in line
with the discount of 12 % offered by Pannem.

It can be seen that on the basis of original coal supplied, the cost based on Rs./Gcal
form Monnet and ACBL washed coal is 22-28 % higher than the raw coal. The
high cost for the coal from the washeries is that their increase in GCV due to
washing process is not commensurate with the yield. In other words, the yield of 80
% must give coals of much higher GCV or in the converse, for the present GCV the
yield must be much higher (say 87 %).
Recommendation: An independent third party validation of the washery
energetics to map the yield as a function of the input raw coal quality and washed
coal quality is required.

At present, the washing charges (Rs. 120/tonne) are not being paid to the washeries
because of the PG test is not over. However, in the long run washing charges are
applicable. The cost would then be upgraded further by 4-5 % as shown in Table 21.

The total annual fuel cost (Rs. Cr) is given in Table 22 for the three stations.

Comparative values for achieved parameters of neighboring TPS are as follows:

19

Sl.
No.
Station
TL
(%)

SHR
(kcal/kWh)
Cost of
Coal
(Rs./kWh)
Cost of
energy
(Rs./Gcal)
1 Kota TPS, Rajasthan 2605 1.7 652.6
2 SSTPS, Rajasthan 2500 2.1 828.8
3
Panipat
(Units 5-8)
5.26 2740 2.28 832.1
4 Yamunanagar 9.09 2500 1.97 788.0
5 Hissar 6.96 2846 1.99 699.2
6 Torrent, Gujarat 1.41 2500 1.83 732.0
7
GSPGCL, all TPS above 210
MW
1.5 2500 1.73 692.0

Recommendation: The coal cost (landed price of coal at the TPS) can be evaluated
in three formats:
Rs. /t = (coal cost + freight)/receipt weight
Rs./kWh = (coal cost + freight)/energy generated
Rs./Gcal = (coal cost + freight)/(receipt weight x GCV of receipt coal)
converted in Gcal to have it in comparable number values.

While the cost per t is sensitive to the purchase price, the cost per Gcal is also
sensitive to the quantum of heat in the coal. Suppose the cost/t may be low buy
cost/Gcal may be high because heat content in receipt coal may be low.

4.2 Freight
Freight is an unavoidable cost. The freight is based on the actual km recorded and
the rate fixed. The distances between the coal mines and washeries to GHTP are as
follows:
From Panem mines 1743 km
From Monnet washeries 1482 km
From various CIL mines varies between 1500-1700 km

The process of charging freight is in order.

4.3 Transit loss (TL)

Basic causes of TL:
TL in the case of PSPCL is caused because of the following:
i. Differences between the loading end and unloading end weighments.
Presently the accuracy of the weighments are 0.5 %. The basic unit of
weighment is the wagon which contains 70 t of coal. Assuming 0.5 %
would mean an inaccuracy of 0.35 t. assuming the weigh bridges are
20

unbiased then the positive (shortage) and negative (excess) errors will
cancel out but for the purpose of computation a 0.5 % shortage can be
expected from this process which works out to 350 kg.
ii. Moisture loss from the wagon will be only on the surface of the wagon. The
wagon dimensions are 9.78 m x 3.20 m for all wagons as only the depth
varies. Assuming the moisture loss of a maximum of 1 % occurs up to a
depth of 0.3 m of coal, bulk density of uncrushed coal is 1118 kg/m
3
, the
weight loss is 107 kg per wagon assuming that the time of transfer is
around 2-3 days.
iii. Coal fall out from sides and windage loss due to fines blowing off: a
maximum of 2 sacks of 35 kg , i.e., 70 kg per wagon.
iv. Removal of coal from unauthorized elements at the peripheral areas of mines
and at certain stops: This cannot be quantified. The help of Railway police
forces must be taken to ensure that these incidences are minimized.

Thus the total TL for technical reasons is around 350+107+70 = 527 kg out of 70 t
which works out to 0.75 %.

Preamble:

1. The transit loss (TL) fixed by CERC is 0.3 for pit head TPS and 0.8 % for non-
pit head TPS for coals sourced from Coal India Ltd. where the weight for
payment is taken at the sending end (mine end) and not at the receiving end
(TPS end). This is applicable for both raw coal as well as washed coal where
there higher moisture.

2. In the case of pit head stations allotted TL is 0.3 % whether it is transported
by buckets in aerial ropeway (merry go round system), trucks or railways. The
mode of transportation is not important in deciding the TL.

3. Some ERCs (Energy Regulatory Commissions) such as Karnataka, no stand
alone TL is being allowed but instead a transit cum stacking loss (weight loss
at TPS site) of 0.8 % is allowed for all receipt coal (entire total coal received)
on weight basis. This is applicable to all coals received including washed and
imported. As per CERC norms, transit loss is 0.8 % for non-pit head and 0.3 %
for pit head stations, no separate stacking loss is being allowed. When almost
total coal is supplied by CIL, this model is applicable where the loss is taken on
notional basis on not on actual TL.

4. It has been established that allotting a lower allowable TL has a positive
impact on reducing enroute thefts or unaccounted removal. It has also been
established that TL is independent of the distance traversed between the mine
and the TPS [8] or a linear relationship between the distance over which coal
is transported and the transit loss levels cannot be empirically established. In
21

the case of Maharashtra and Gujarat, even though there is wide variation in
the distances between mine and the various TPS a constant TL of 0.8 % has
been fixed. The majority of the coals are raw unwashed coals.

5. Table 23 gives a review of the TL applicable to other utilities.
Observations and recommendations:

TL for the year FY 2009-10 to FY 2011-2012 is given as follows:

Sl
No.
TPS 2009-10 2010-11 2011-12
01 GGSSTP, Ropar 1.15 1.16 1.23
02 GNDTP, Bhatinda 0.66 -0.15 0.08
03 GHTP Lehra
Mohabbat
1.16 1.33 1.25

6. The sources wise details of TL are given in Table 24. It can be seen from the
above Table that the major TL is on account of CIL coals. Since GNDTP is
getting majority of the coal (90 % this year) from Pennam, the TL is quite low.

7. The cost upgradation due to TL on the cost of generation for 2011-12 is as
follows:
TPS Total (Rs. Lakhs) Rs./ t Percentage( %) p/kWh
GGSSTP 487.835 10.49 0.35 0.66
GHTP 492.230 11.25 0.39 0.69
GNDTP 9.932 0.70 0.02 0.05

8. Figure 27-42 give the monthly variation of TL over the last 3 years. The
following can be seen from the figures:
The variations indicate that the cause of TL is mostly due to mismatch
between the sending end and receiving end weigh bridge readings.
In the case of washeries, the fluctuations are quite high, indicating
weighing is not stabilized.
Transit loss from unconnected wagons is also high but the quantity is
quite low.
In case of very high TL it can be attributed to enroute thefts by illegal
or unauthorized elements.

9. TL is applicable only to coals where the sending end (mine) weight is the basis
for payment. In cases where the receiving end payment (TPS end) is the basis
for payment, such as captive mines, the TL is not applicable and the shortage
22

of coal is entirely to the account of the supplier. The shortage of coal must not
be loaded in the fuel cost of the TPS in such cases as it is factored in the
payment terms of the suppliers contract. TL must be borne by the supplier.

10. TL is not applicable for coal from imported sources and captive mines.
Payment for Panem captive mines is for weight actually received at the TPS
and hence transit loss is not calculated. In the case of Monnet Washed coal,
presently the shortages are considered under TL.

11. In the case of washed coal, TL from mine to washery is in the scope of PSPCL.
Presently, for Monnet & ACBL (Aryan) it is chargeable/loadable to the supplier
because the telemetering system is not installed and Performance guarantee
test is not over.

12. In the case of washed coal, TL between the washery and TPS is in the scope
of TPS. The telemetering system as indicated in the FSA is yet to be installed
at the washery site. This involves installation of in-motion weighbridges or raw
coal and beneficiated coal with facility for telemetering the data at PSPCL.
Presently, this facility is not operational. However, TL is in the scope of the
TPS in the case of washeries after the telemetering system becomes
operational. The TL needs to be authenticated by tamper proof weighting
systems of raw coal receipt and washed coal dispatch to PSPCL from the
washery.

13. In the case of PSPCL major coal supply of over 80 % is sourced from captive
mines and washeries. Hence the TL is presently applicable only to 20 % of the
coal sources from CIL.

14. The TL control is already in the scope of the Liaison agent for raw coal only. In
the case of washed coals, services of Liasion agent are not used presently.
The Liasion agents scope is restricted to CIL coal only. The Liasion agents
payment under ideal conditions is Rs. 53/t (maximum) for the full quantity of
the rake. The payment to the Liaison agent is linked with coal shortage as
follows:
Sl.
No.
Rake wise percentage
shortage received
Charges Rs./t for total
quantity received in a rake
1 Shortage 1.5 % to 2.0 % 13.51
2 Shortage 1.0 % to 1.5 % 27.03
3 Shortage 1.0 % to 0.5 % 40.54
4 Shortage below 0.5 % 45.05

23

In other words, in case of coal shortage below 0.5 %, the LA gets Rs. 45.05/t
+ Rs. 8.0/t = Rs. 53/t for the quantity of the entire rake on rake to rake
basis. The payments to LA will get progressively reduced if TL increases.
These rates per tonne are multiplied by the total quantity of the rake for
deciding the payment.

15. In case the TL exceeds 2 % penalty will be deducted from the receivables of
the Liaison agent as follows:
Sl.
No.
Rake wise percentage
shortage received
Penalty leviable Rs./t for total
quantity of coal received in the rake
1 Shortage 2.0 % to 2.5 % 4.5
2 Shortage 2.5 % to 3 % 9.01
3 Shortage 3 % to 3.5 % 13.51
4 Shortage 3.5 % to 4 % 18.02
5 Shortage 4 % to 4.5 % 24.78
6 Shortage 4.5 % to 5 % 31.53
7 Shortage 5 % to 5.5 % 38.29
8 Shortage above 5.5 % 45.05

In the case when TL exceeds 2 %, the LA will not receive any charges but
instead will have to pay upfront penalties from his earlier/future receivables
to PSPCL.

16. Simulation of impact of TL on the three TPS:
Figure 43 gives the typical loss per rake for a typical TPS-GGSSTP.

17. Figure 44 indicates that the impact of TL on the payment to Liasion agent.

18. It is seen from the Figure that upto 2 % TL, the Liasion agents payment
compensates for the cost. Above 2 % TL, the Liasion agent inadequately
compensates for the loss. The actual coal cost (landed price, i.e. coal +
freight) may be compensated by Liasion agent if the penalty is directly linked
to landed coal cost which is Rs. 30/t for 1 % shortage of coal (1 % of Rs.
3000/t). Otherwise the costs do not compensate.

19. Strategies for reduction of TL: Strengthening of the involvement of PSPCL
officials in the loading process at the mine end. This would also help in
bringing down the stones, POL issues, etc. Table 25 gives the steps for
reducing TL as applicable to PSPCL.

20. The experience of reducing TL in steps to converge to the CERC norms has not
met with much success in some utilities including at PSPCL (2003-04 3 %
reduced to 2 % in 2004-05 and proposed 0.33 % reduction/year in the next
24

three years) as the TL has continued unabated and has caused differences of
opinions regarding the fixation of TL [10].

21. Many states like Maharashtra, Gujarat and Karnataka which have transit
distances on par with Punjab have adopted a 0.8 % TL norm in tune with
central norms. Other states are converging to the 0.8 % norms.

22. Recommendation: Considering the above facts it is recommended to reduce
TL to CERC norms of 0.8 % for CIL & Washed coal. In the case of washed
coal it may be ensured that washed coal is brought to equilibrium with respect
to moisture before being loaded onto the rakes. Coals with high moisture
loaded onto wagons likely to give rise to some weight loss in transit must be
stabilized before loading. Also, since the majority of the coal (60-90 %) is
coming from Penam, the 0.8 % TL will be only for CIL coals.

Figures 45 and 47 gives the cost saving from reduction in transit loss for GGSSTP
and GHTP respectively.
Figures 46 and 48 gives the saving in fuel cost from reduction in transit loss for
GGSSTP and GHTP respectively.
4.4 Coal handling contract charges
There are in order.

4.5 Demmurages
Premable:

The demmurages are on account of both controllable and uncontrollable causes:

Uncontrollable causes are:
bunching of rakes, i.e., arrival of multiple rakes at one point of time is
resulting in bottlenecking in the wagon tippling process.
Difficulties in unloading of wet coal during rainy season and in dense fog.
Unforeseen outages like breakdown of coal yard equipment (shunter, wagon
tippler, coal conveyor, etc.) derailment of wagon at the wagon tippler.

Controllable causes are:
Positioning of wagons- shunter or mechanical positioning
Mode of unloading of stones- manual or mechanical
Disposal rate of the coal feeder- speed and type of feeder-apron or vibratory

1. The demmurages incurred by the stations is given in Table 26. The highest
demmurages are paid by GGSSTP followed by GNDTP. It is low for GHTP.
Figure 49 gives the demmurages for the three TPS.

25

2. The cost upgradation due to demmurges on the cost of generation for 2011-
12 is as follows:
GGSSTP 330.36 7.09 0.18 0.45
GHTP 39.49 0.89 0.02 0.03
GNDTP 53.71 3.83 0.13 0.29
Variations between Table 26 & Table 19 are because of account process of indicating
actual payments only. Payments in dispute or in suspense are not indicated in Table
19. Table 26 is the actual incurred value (independent of payment).

3. Demurrages are meant to induce the TPS to unload the wagons in time. They
provide disincentive to the TPS to retain wagons at site.

4. Earlier (around 10 years back) the CC (carrying capacity) of wagons was 58.6
t per wagon. It was gradually upgraded to CC + 10 which comes to 70-71 t.
Earlier the rake capacity which was 3300 t is now 4000 500 t. This implies
that the capacity of a rake is increased by 20 %. In future the wagon
capacities are likely to be increased to 74 tonne wagons with the same planar
dimensions but with increased depth.

5. Earlier the allotted unloading time was 10 h, it is now 7 h for tippling type
wagons (BOX, BOX-N, etc.) while it is 2.5 h for bottom opening wagons
(BOBR). Here again there is a 30 % reduction in time.

6. The railways is making unloading times considerably stringent but practicable.
The TPS has to rise to the occasion with modernization and upgradation
modifications in the unloading infrastructure to ensure that the unloading
happens within the time allotted.

7. A PAC (public accounts committee) report [11] has indicated that waiver of
demurrages by railways for coal supplied to TPS were unjustified.

8. A CAG report [12] indicates that not more than 25 % of the demurrage
amount should be waived in each case and detailed reasons for waiver of 10
% and above of the amount accrued should be recorded in each case. Hence,
once the demurrage is incurred, it is very difficult for the TPS to get waiver
for over 25 % under any circumstance at present.

9. A MoP report [13] has impressed upon all TPS that the only solution to
reduction of demurrages is to improve unloading infrastructure.

26


10. Demurrages are applicable for only for unloading at TPS end. Demurrages at
the loading end of CIL, captive mines and washery is not in the scope of TPS
and not chargeable to PSPCL.

11. In the present case, since the stations are old their infrastructure for
unloading of coal has not kept in tune with the unloading requirement
standards set by the railways as described above.

12. The approximate number of rakes received are:
GGSSTP: 4-5 rakes/day
GNDTP: 1-2 rakes/day
GHTP: 3-4 rakes/day

No. of rakes received/year is as follows:

Sl.
No.
TPS 2009-10 2010-11 2011-12
01 GGSSTP, Ropar 1613 1631 1350
02 GNDTP, Bhatinda 552 364 348
03 GHTP Lehra
Mohabbat
1246 1158 876

The details of source wise rake receipt are given in Table 27 for the 3 TPS. Figures
50-52 give the details of rake receipts for the three TPS.

13. Robust infrastructure is required for unloading and release of wagons on time.
The reduction of demmurages is possible by optimal choice of unloading
equipment [14]. The steps involved in the unloading process are given in
Table 28. Tables 29, 30 give the unloading times in GGSSTP and GNDTP.
Table 31 gives a review of the unloading infrastructure at the three TPS.

14. Recommendation: It was noticed that in all the three TPS wagon
positioning equipment (inhaul-outhaul beetle chargers or side arm chargers)
are either not present or non in working condition and the shunter is used for
the same. Either these may be repaired or side arm chargers may be installed
for all wagon tipplers.

15. Earlier wagon tipplers were designed for 10-12 tipples/h. The design of
wagon tipplers may be reviewed for upgradation. Present day tipplers have a
capacity of 20-30 tips/h (forward speed: 0.5 m/s; backward speed: 0.5 m/s),
repose angle of 37 C and designed weight of 110 t (CC: 70 t + tare weight:
20-21 t). The capacity of equipment downstream of wagon tipplers such as
27

tippler hoppers, conveyors from the tippler onwards, etc., have a bearing on
the disposal rate of the wagons.

16. Recommendation: Earlier wagon tippler systems were designed for 500 &
1000 t/h to empty a rake in 3 h. Present day systems are available in 1600
t/h for faster disposal. The detailed study of wagon tippling systems and coal
conveying may be studied for removal of existing bottlenecks and for
upgradation wherever it is critical.

17. Conveyor capacity from tippler hopper: Choking of coal at the tippler
hopper and at the feeder is also a reason for delay. Some benefit can be got
from automatic positioning. But the most critical time or limiting time is the
clearing of coal from the tippler hopper. Pan type Apron feeders are
universally recognized as the feeders to absorb high loads and impacts.
Recommendation: Detailed study and upgradation of coal conveying
system especially at GNDTP which is using vibratory feeders.

18. Tracking of coal in transit: Besides weighing of primary resources, viz.,
coal, accurately, the bunching of rakes can be managed or minimized by
effective tracking of wagons from their source mine to their destination
(power house coal yard). Recommendation: Rail tracking system
through GPS or alternative technologies.

19. Recommendations: Grab cranes for removal of stones from the wagon
tippler area is present in Ropar. The same may be installed in Bhatinda and
Lehra Mohabat.

20. Recommendation: Rotary pneumatic or electrical hammers may be
used for crushing coal lumps at the wagon tippler in place of manual
hammering.
4.6 Siding charges
The TPS are having their own sidings and these charges are negligible.
4.7 Penal overloading charges (POL)
1. Table 32 gives the Source wise incurrence of POL for 3 years. It is seen that
the major POL is on account of Monnet Daniel washeries in GGSSTP & GHTP.
In the year 2011, it is abnormally high for Monnet washeries. This is because
the overloading charge is low compared to coal cost and there is a tendency
to overload for getting a better price per rake.

2. The cost upgradation due to POL on the cost of generation for 2011-12 is as
follows:

28

TPS Total (Rs. Lakhs) Rs./ t Percentage (%) p/kWh
GGSSTP 297.20 6.38 0.22 0.40
GHTP 171.31 3.92 0.14 0.25
GNDTP 4.48 0.35 0.02 0.004

Variations between Table 32 & Table 19 are because of account process of
indicating actual payments only. Payments in dispute or in suspense are not
indicated in Table 19. Table 32 is the actual incurred value (independent of
payment). POL is very low in GNDTP because the major coal is from Penam.

3. Figures 53-55 give the month wise, source wise POL for the three TPS.

4. Loading is the responsibility of the buyer (TPS) when it is bought from CIL,
wherein the liaisoning agent on behalf of the buyer must take care of correct
weight loaded.

5. In case of washed coal or raw coal from captive mines, it is the responsibility
of the supplier to load the wagon correctly.

6. In case of captive coal from Penam, higher freight charges due to idle freight,
under loading of wagons, overloading of wagons is in the scope of Penam and
POL charges at loading end are not to be paid by PSPCL.

7. In the case of Monnet Washeries, the POL is shared by Monnet & PSPCL in
the ratio of 50:50. Recommendation: Since loading is in the scope of
Monnet, POL may be brought into the scope of Monnet.

8. Inadvert overloading/under loading does occur during filling up of coal in the
mines, However, this must be minimized to a large extent by the vigilance of
the Liasion agent. Liasioning agent must take care of this aspect and ensure
that POL does not go out of order. Presently, Liasion agent is not hired for the
washed coal.
4.8 Commission to liasioning agents
This is already discussed under TL.

4.9 Payment to railway staff

The payment is at actuals and is in order.
4.10 Coal stock maintenance cost

This is for bulldozers and shunters in the coal yard and is in order.
29

4.11 Weigh bridge labour cost

The weigh bridge labour cost is in order.

4.12 Costs associated with stones and non fuel foreign
materials in coal

1. The volume of stones above 250 mm size, is determined periodically by
making heaps and the density of 1.473 t/m
3
is used as a conversion factor.
The joint inspection between officials of TPS and Coal India is undertaken for
seeking credit to stones. Presently, the stones are not being sold and are
being used for in-house purposes. This is a good practice.

2. Table 33 gives stones receipt from CIL coal for 3 years. It can be seen that
the % of stones is high in GGSSTP (1.2-1.8 % of the receipt coal) while it is
normal at GNDTP (0.1 %). In GHTP (0.4 %) it is slightly high.
3. The cost associated with stones in Rs. 4.28 cr in 2011-12 while it is Rs. 75 L
in GNDTP & Rs. 34 L in GHTP (please refer to Table Nos. 19-1,2,3 in Annex
2). The cost upgradation due to stones on the cost of generation for 2011-12
is as follows:
GGSSTP 428.074 9.20 0.31 0.58
GHTP 619.960 14.17 0.49 0.87
GNDTP 75.425 5.32 0.18 0.40

Variations between Table 33 & Table 19 are because of account process of
indicating actual receipts only.

4. Our study of stone from other stations indicates that average stones expected
from CIL is between 0.1 to 0.25 % of the total receipt quantity of a rake.
This works out to Rs. 0.3 lakhs/rake. Stone above this percentages are not
normally encountered and the issue must be taken up with the collieries to
reduce the same.

5. Recommendation: Frequent visits and inspections at the colliery loading
end is essential to minimize the receipt of stones.

6. The cost of stones is being recovered or refunded by Coal India Ltd. , but
there is an issue with CIL about the stones originating from the washeries
and captive mines.

7. Recommendation: Random sampling of rakes from washeries and captive
mines in the presence of CIL officials may be undertaken to sort out the issue
with CIL and convince them that stones are from CIL.

30

8. Table 34 gives the details of generation of rejects (very low grade coal, stone
particles emanating from the mill reject gate) which are generally sold to brick
kilns, etc., as source of thermal energy. At GGSSTP it is around 0.1 to 0.2 %
while at GHTP it is 0.03 to 0.07 % of the receipt coal. The values are normal
since they are below 0.5 %.

Figure 56 give the cost saving from reduction in stones for GGSSTP, Roopnagar.
Figure 57 give the fuel cost for reduction in stones for GGSSTP, Roopnagar.

4.13 Status of rebates offered by railways or other
agencies

At present the system of offering rebates is made away with by the Railways. This
system is not in vogue at present.

5.0 STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

5.1 FSA with Coal India Ltd (CIL)

The FSA with Coal India Ltd. is a standard agreement of CIL.

The FSA with coal Indian defines the following:

Equilibrated Basis means determination/computation of various quality
parameters such as but not limited to ash, volatile matter, fixed carbon, Gross
Calorific Value etc. expressed at Equilibrated Moisture level determined at 60%
relative humidity (RH) and 40 degree Celsius (C).

Equilibrated Moisture means moisture content, as determined after
equilibrating at 60% relative humidity (RH) and 40 degree Celsius as per the
relevant provisions (relating to determination of equilibrated moisture at 60% RH
and 40 degree Celsius) of BIS 1350 of 1959 or amendment thereof.

Surface Moisture means the moisture content present in Coal that is derived as
the difference between Total Moisture and Equilibrated Moisture, and expressed in
percentage terms.

Total Moisture means the total moisture content (including surface moisture)
expressed as percentage present in Coal and determined on as delivered basis in
pursuance to IS.

The FSA has a provision for adjustment of quality or grade as follows:

Gross Calorific Value or GCV means the heat value determined on
Equilibrated Basis through a Bomb Calorimeter in accordance with to the
31

procedure laid down in IS:1350 (Pat- II) 1970:

1.6 PREPARATION OF MANUALLY COLLECTED SAMPLES:

1.6.1 The Gross Sample collected will be divided into two portions. One portion
(one fourth of the Gross Sample) called Part-1 will be used for analysis
of Total Moisture and t he other portion (three fourth of the Gross
Sample) called Part-2 for Proximate Analysis and determination of UHV on
Equilibrated basis.

11.2 Adjustment for analyzed quality/
Grade

11.2.1 The bills with regard to adjustment for quality, as determined under
Clause 4.7, shall be supported by relevant documents in respect of the
analysis carried out of the following parameters:

a) Total Moisture (%)
b) Equilibrated Moisture (%)
c) Ash (%)
d) Volatile Matter (%)
e) GCV (kcal/Kg)

Presently, according to PSPCL, the consideration for surface moisture is not being
factored into the GCV and only being given concession in weight in case the surface
moisture exceeds the inherent moisture by 7 %. Recommendation: The
inclusion of surface moisture in the GCV computation may be taken up at
appropriate forum. The GCV on as received basis is a better representation
of the heat content rather than the moisture free basis.

Recommendation: The joint witness of weighment and quality determination at
the sending end must be fully utilized for ensuring that quality and quantity are in
order.

5.2 FSA with captive mines (Panem)

1. Payment for coal is as per prevailing BCCL price with a discount factor as
follows:
Grade of coal Discount factor % of
prevailing BCCL coal price
Remarks
A 38
B 33
C 19
D 15
E 12
F 19 Non-conforming
32

2. Acceptance grades are Coal India UHV gradation A to E.

3. Non confirming coal but accepted by TPS is as follows:
3.1 F grade coal or grade slip of E grade coal: F grade coal up to 5 % of
the total quantity in a quarter will be accepted at a discount factor of
19% of the BCCL price.
3.2 Moisture in coal more than 4 % over and above the equilibrium
moisture (inherent moisture). For every 1 % increase in moisture over
4 % above equilibrium moisture, 1.5 % of the total cost will be
deducted.

4. Payment is for weight actually received at the TPS and hence transit loss is
not applicable.

5. Contract price is for quality and quantity at the delivery point, i.e., TPS end.

6. Higher freight charges due to idle freight, under loading of wagons,
overloading of wagons is in the scope of the supplier and charges are not to
be paid by PSPCL.

7. Loading of wagons and loading risks like theft of wagon parts, including
penal overloading & demurrages at mine end is in the suppliers
price. Only normal freight is payable by PSPCL.

8. Unloading charges, unloading risks and demurrages at the TPS are in the
scope of PSPCL.

Observations & Recommendations:

1. The FSA is in order.

2. Recommendation: One of the major factors involved in the payment to
Panem is the testing of coal samples at the TPS. Hence, extra care must
be exercised in sampling and measurement of receipt coal quality as it
seriously impacts the fuel price.

33

5.3 FSA with coal washeries (Monnet Daniel,ACBL)

Preamble:

1. In a washery process the extraneous mineral matter (like clay and sand and
stones) which results from open cast mining is reduced. The inherent bound
ash which is an integral part of the coal particle or coal lump is not separated
from the coal and will be associated with the coal particle until it is burnt and
converted into ash. The separation between coal and ash takes place only
during the combustion process (even though there are costly chemical
processes for extracting ash which is not relevant to the present process).
The washery process, therefore only leads to reduction in extraneous mineral
matter which has got mixed in the coal volume during the open cast mining
processes using bull dozers and material handling equipment.

2. Clean coal technology is a part of Indias integrated energy policy Washeries
are required to be installed to reduce the mineral matter and avoid carrying of
this much and mud which is taken out along with coal in the mines. This
would reduce the transportation cost and provide good coal for combustion in
the power plant. The intangible benefits of pit head beneficiation of coal are
increased PLF due to lower outage rates of boilers, better loading of mills,
reduced milling power, etc..

3. Environmental requirements of GoI [15] stipulates that TPS located
over 1000 km from the pit head (mine) must use coals with ash less
than 34 %. In case of high ash coals a lot of mineral matter which does not
taken part in the combustion will have to be hauled over long distances. To
avoid this washing and beneficiation of coal to reduce the ash content is
suggested as a remedial measure. Thus, the basis for justifying washing is
ash being over 34 % since the transit distance is over 1000 km. In case the
ash is below 34 %, there is no mandatory requirement for washing and the
coal can be directly used.

4. In this line, wet beneficiation process are used for power station coals with
ash in the range of 28-34 % and higher ash contents. The term ash refers to
real ash which comes out when the coal is burnt as well as mineral matter
which gets mixed with coal during the mining process.

5. The ash content of the parent coal supplied to PSPCL for the washing process
for the three years FY 2009-10, 2010-2011 & 2011-12 is respectively 34.90
%, 34.67 %, 34.43 %.
34


1. Making available the ROM (run of mine) raw coal to the washery is in the
scope of PSPCL.

2. The receipt transportation, handling, weighment and quality determination for
ROM raw coal to the washery is in the scope of Monnet.

3. PSPCL is to be fully associated with Monnet washeries in the weight and
quality determination at the receiving end of the washery.

4. PSPCL is also to be fully associated with Monnet in the weight and quality
determination of washed/beneficiated coal leaving the washery to TPS at the
loading end.

5. TL from mine to washery is entirely in the scope of Monnet and not
chargeable/loadable to PSPCL. The sending end (mine end) weight from the
mine will be reckoned for the purpose of calculations of coal supplied to the
Washery and not the weight at the Washery end.

6. TL between washery and the TPS is in the scope of PSPCL. The FSA specifies
the installation of in-motion weighbridges or raw coal and beneficiated coal
at the Washery with facility for telemetering the data at PSPCL. Presently, this
facility is not operational.

7. The demurrages for unloading of ROM coal at the washery end and for
loading of washed coal at washery end is in the scope of Monnet and not
chargeable to PSPCL.

8. If coal is not loaded by CIL, then the loading charges alone are payable by
PSPCL as per agreed rates.

9. The reject matter from the washing and beneficiation process and their
disposal is entirely in the scope of Monnet.

10. POL for loading of washed coal at the Washery end will be shared between
PSPCL & Monnet in the ratio of 50:50. This is a clause in a standard washery
FSA. Recommendation: Since washed coal loading is entirely in the
control of Monnet, the POL must be the in the account of the washery. This
clause is recommended to be reviewed and reverted to include the POL into
the scope of the washery.

35

11. Unloading of washed coal including demurrages at the TPS is in the scope of
PSPCL.

12. The performance guarantee test is yet to be conducted on the Washery.

13. Quality linked payments applicable at receiving end (TPS end):
13.1 Ash content- F & G grade coals as per Coal India gradation: For
F & G grade coals payment is based on ash at equilibrated conditions
(40 C and 60 % RH) not to exceed 34 % at an actual yield of 80 %.
If the ash is less than 33 %, then the lower yield will be considered.
13.2 Ash content-E grade coals as per Coal India gradation: For E
grade coals ash at equilibrated conditions (40 C and 60 % RH) not to
exceed 29 % at an actual yield of 80 %. If the ash is less than 28 %,
then the lower yield will be considered.
13.3 Yield is linked to ash content of the washed/beneficiated coal on a
monthly average basis.
13.4 Moisture content: Maximum moisture is 10 % without penalty and
cut of moisture is 13 % with penalty, provided the total equilibrated
moisture of coal is 7 %. In other words, the maximum moisture
content must not exceed 5 % over the equilibrated moisture. In case
the equilibrated moisture is changed then the limits will vary
accordingly allowable 3 % higher and cut off 5 % over the
equilibrated moisture. Penalty is that no beneficiation charges will be
paid for that rake.

14. Quality linked payment applicable at Washery end:
Material efficiency- yield: Theoretical yield (mass of beneficiated product
coal to mass of raw coal fed in) is taken as 84.2 % and the organic efficiency
or yield (actual yield as percentage of theoretical yield) is taken as 95 %. The
overall yield or actual yield is therefore:

Material efficiency/yield = Mass of beneficiated product/ mass of coal input to
the process = 84.2 x 0.95 = 80 %

The theoretical yield is taken as a constant and the organic yield is considered
as a variable. If the organic yield is lower by 0.1 % then the penalty is 3 %
of the beneficiation charges for an organic yield between 93 & 94 %. If
organic yield is below 93 % it will not be accepted.

The guarantee on yield is at the Washery loading end and not at the
receiving end.

36


1. While the tangible and intangible benefits are indisputable, the energy
efficiency of the washery process and its effect on the fuel cost is of
paramount importance in determining the cost viability of the process.

2. The FAS with coal washeries involves receipt of coal on the basis of only ash
and moisture as quality. The quantity and the ash, moisture are the
basis for payment to the washeries. An 80 % yield is permitted for the
washeries which implies that 20 % of the original coal is reduced.
Year
UHV of
raw coal
lifted by
washery
UHV of
raw coal
supplied
by
washery
GCV of
raw coal
lifted by
washery
GCV of
raw coal
supplied
by
washery
Actua
l
gain,
kcal/
kg
Gain in
heatin
g
value,
%
Loss
of
weight
, %
Overall
energy
efficiency of
washing , %
2009-2010 3386 3916.71 4364.2 4707.2 343.1 7.86 20 86.29
2010-2011 3378 3945.83 4359.0 4726.1 367.1 8.42 20 86.74
2011-2012 3393 3924.33 4368.7 4712.2 343.5 7.86 20 86.29

3. Analysis of the GCV of the coal lifted by washeries and dispatched by
washeries indicates a gain in GCV of 343-367 kcal/kg which is 7.86-8.43 %
against of loss of 20 % of the primary weight of the coal. The energy
efficiency of the process is 86.5 %.

4. The raw coal lifted by the washeries is through trucks for which the charges
are around Rs. 120/tonne. Two samples of the lifted coal is being taken every
20 days.

5. Recommendation: GCV of both receipt and washed coal is to be
determined, documented and reported for each and every rake of coal input
and output of washery (Ref: p. 68, item No.6 titled Analysis of FSA of PSPCL
with Monnet Daniel Washeries).

6. Receipt coal quality: The overall yield is strongly dependent on the ash
content of the receipt coal. In the event of the receipt coal having ash below
34 % the question of washing itself does not arise. No mention of the receipt
coal quality is made in the FSA since the yield is strongly dependent on the
parent coal quality. The data for the past three years on receipt coal
indicates that the ash content is just 33.4 to 34.0 % so the question of
whether washing is required in the first place needs to be critically reviewed.
It is agreed that if ash exceeds 34 % anywhere down the time line, washing
is mandatory as per GoI requirements.

37

7. Decrease in ash content: Decrease in ash content guaranteed by the
washery is not indicated in the agreement. Only cut-off limits of ash are
specified.

8. Moisture in washed coal: Gains from improved quality due to reduced ash
must not be lost in increased moisture in the coal. The effect of 1 %
increased moisture on boiler efficiency is much higher than 1 % increased
ash because the latent heat is lost in the form of wet flue gas losses in the
boiler.

9. GCV increase vis--vis the mass yield: The increase in GCV of the
washed coal must be commensurate with the loss of mass of coal.
The theoretical relationship between GCV (kcal/kg) and yield (%) is given as follows:

10. The Washery has come out with experimental formulae of yield versus final
coal quality as per the following relationship for an initial coal quality of 34 %
ash:
Yield (%) = A
0
+ A
1
x (Final required ash content)
Where the constants are as follows:

38

A
0
A
1
R
2

Test 1 -6.9933 2.9507 0.9698
Test 2 -14.349 3.0096 0.8899
Test 3 -10.469 2.9683 0.947

According to these the yield (%) for a raw coal ash of 34 % is given by:
Final
Ash, %
Yield 1
(%)
Yield 2
(%)
Yield 3
(%)
28 75.63 69.92 72.64
29 78.58 72.93 75.61
30 81.53 75.94 78.58

The yield appears to be on the lower side. The relationship between
experimental yield and ash in washed coal is given in Figures 58-60.

11. A detailed simulation (in EXCEL) is undertaken considering all factors [like
parent coal cost, parent coal TL, parent coal freight, washed coal freight,
washing charges, washed coal TL, GCV of parent coal, GCV of washed coal,
etc.] for the improvement in GCV vis--vis the yield, in the present situation.
As the coal GCV is higher and quantity of washed coal is lower, the
transportation cost is reduced but the coal cost increases and the cost of
washing gets added to it. The simulation indicates that the energy cost
Rs./Gcal is highly sensitive to both yield and to GCV of washed coal (for a
given GCV of raw coal).

The following three simulations are performed:

GCV of washed coal as computed by Monnet in their bill: 5007.5
kcal/kg and parent coal: 4368.7 kcal/kg

39

If the GCV is as computed by Monnet, then the washed coal becomes
economical to use for a yield of above 82.5 %. If the yield exceeds 82.5 %,
then the washed coal is economical for usage considering all costs.

GCV of washed coal as computed at TPS end: 4712.2
kcal/kg

The GCV of washed coal computed at the TPS end is 4712.2 kcal/kg for which
the simulation is done.

If the GCV of coal is 4712 kcal/kg then the washed coal (sloping line above)
never becomes cost economical even at a yield of 90 %.

Intermediate GCV of washed coal of 4800 kcal/kg

An intermediate GCV of washed coal of 4800 kcal/kg is considered only for the
purpose of illustration.

40

At an intermediate GCV of 4800 kcal/kg then the washed coal becomes
economical only at a yield of around 89 %.

12. Validation of the process yield: A flat overall yield is 79-80 % has been
considered for the process. The present yield is presently uneconomical giving
a cost upgradation. Recommendation: Keeping in mind the that the
density differences between coal, mineral matter and ash are low, the
process yield for various input coals must be got validated by an
independent third party agency such as CPRI or CFRI, etc..

13. Validation of the process energy efficiency map: Presently the energy
efficiency of the process is 86-87 %. The overall energy efficiency function of
the process must be specified along with the initial ash in parent coal and
final ash in washed coal to ensure that the process is energetically and
economically justified. Recommendation: The process energy efficiency
map along with economics for various input coal GCVs and washed
coal GCVs must be got validated by an independent third party
agency such as CPRI or CFRI, etc..

14. Telemetering system: Recommendation: The telemetering system for
on-line information of the in-motion weighbridge readings of receipt coal
received and beneficiated coal loaded at PSPCL TPS is essential and must be
implemented at the earliest to provide authentic tamper proof data on transit
loss and total weighments of both receipt coal and washed coal dispatched at
the Washery.
41

15. Recommendation: POL at the loading site of washed coal may be brought
fully into the scope of Monnet which is presently shared 50:50 by Monnet and
PSPCL.

16. Recommendation: The coal loaded into the rakes must have equilibrium
moisture. This is to ensure that TL does not occur due to non-equilibrium
moisture in coal evaporating and coal coming back to equilibrium moisture.
Moisture related TL must be in the scope of the washery.

17. Recommendation: The cost of coal supplied through the washery process
which is higher by almost 22-28 % to coal from other sources, may be
reviewed. Apart from the clauses on quantity of washed coal delivered, the
quality process may be reviewed. The coal lifted by the washery must be
specified in terms of GCV, ash and moisture. The sampling frequency of the
coal must be on the basis of similar to rake sampling, i.e., around 350 kg per
4000-4500 tonnes, i.e., 80 ppm (parts per million).

18. Dipika-ABCL Washeries: In the case of raw coal lifted by Dipika-ABCL
washery from SECL only the grade is specified and the UHV is not specified.
The grade is mentioned as F grade. The band width of UHV of F grade is
varying between 2400 to 3600 kcal/kg, implying that there is almost 1200
kcal/kg difference between the band limits of the F grade. In F grade band
variation of ash is 4 %.
5.4 Agreement with liasioning agent

The payment to the Liasion agent is already discussed under TL.
Recommendation: The transit loss may be fully included in the scope of the
liasioning agent. The payments to the Liasion agent must be linked with the actual
coal cost (landed price: coal +freight) , ( i.e., Rs. 30/t x coal weight for the rake )for
every 1 % TL.

6.0 METHODOLOGY OF COMPUTING THE COST OF
FUEL BEING PASSED ONTO THE CUSTOMERS AS AN
UNCONTROLLABLE COST

The following elements are being passed onto the customer as the uncontrollable
coal cost:
42

At present there is no upper limit or cap on demmurages, POL & stones.

7.0 COMPARISON OF FUEL PARAMTERS WITH
NATIONAL /INTERNATIONAL STANDARDS.

The station heat rate (SHR) depends on the following factors:
Coal quality: SHR is strongly dependent on the GCV of receipt coal. If the
GCV is high, then the SHR & auxiliary power will be low. National average coal
CGV is around 3200-3500 kcal/kg. In PSPGCL the coal quality is of the order
of 4400 kcal/kg which is very much superior to the national average. Hence
the loadability and performance can be expected to be better.
Vintage of the unit: The units at GGSSTP are of BHEL (Combustion Engg.
Design) boiler and BHEL (Siemens) turbine and aged around 25-27 years old.
Siemens turbines have good loadability and efficiency and can be operated
with good reliability at near full load.
In the case of GNDTP, the units are of old design and underwent R & M.
Older units of < 210 MW have higher heat rates as compared to national
standards (CERC) which have been fixed at 2500 kcal/kWh.
Effect of ageing : The ageing effects of boilers and turbines can be reversed
or overcome to a large extent through equipment specific renovations and
replacement under capex such as replacement of turbine HP, IP & LP
modules, HP heaters, BFP cartridges, C & I ungradation, condenser tube
nests, CW pumps, etc. In the case of GGSSTP very little renovation at an
equipment level has happened over the years.
Promptness of carrying on capital overhauls (COH) once in five years and
annual overhauls (AOH) once annually has an impact on the SHR.

Table 34 gives a list of SHR of stations of comparable age.

In view of the above, we are of the opinion that the SHR can be restored to the
2500 kcal/kWh level with operational optimization, intensive interventions in R & M
Cost of coal
Cost of freight
Cost of fuel oil
Coal Handling contract
Demmurage Charges
Siding Charges
Penal Overloading
Commission to agents
Payment to railway staff
Derailment Charges
Other Coal related cost
Transit loss
Picked stone
Mill Reject
43

at the equipment levels and prompt annual/capital maintenance. Since, over the
past years equipment specific renovations have not happened, the SHR is above the
2500 kcal/kWh mark.

8.0 CONCLUSIONS

The main conclusions of the fuel study are:

While the audit of quantities of coal are in order, a drop in GCV is observed
between the receipt and bunkered quantity beyond the normal deterioration.
The process needs to be improved to minimize the drop in the GCV of
receipt coal and bunkered coal to 150 kcal/kg. A number of measures
have been suggested for the coal yard and for the monitoring process of coal
quality.

The process of measurement of GCV needs to be made uniform for receipt
and bunkered coal through adding the surface moisture effect @145 kcal/kg
for 1 % to the GCV determined on equilibrated basis through a bomb
calorimeter.

In the case of loading end the consideration for inclusion of surface moisture
effect in the GCV which is presently being determined only through
equilibrated basis may be taken up with appropriate authority.

In cases where the payment is based on quality measurement at the TPS end
only, random and periodic samples need to be sent to third party truly
independent labs under committee supervision.

The concept of the fuel basket must be used to report the receipt coal GCVs,
i.e., source wise GCV must be provided.

The quantities and quality of fuel oil audited is in order.

The reporting period for coal consumption and reconciliation of stock must be
a month.

The overall energetics of the washed coal vis--vis the benefits are presently
not economical. Presently the washed coal is expensive by almost 22-28 % as
compared to the raw coal. The washed coal must be cost economical in
addition to the environmental obligation to not transport coal above 34 %. A
validation of the process must be undertaken by a neutral third party agency
at the earliest.

In the case of MDL the UHV of the raw coal lifted by the washeries is
recorded. In the case of Dipika washery of SECL, the band width of UHV of F
grade is varying between 2400 to 3600 kcal/kg, implying that there is almost
1200 kcal/kg difference between the band limits of the F grade.
44

The sampling frequency of the coal lifted by washeries must be on the basis
of similar to rake sampling, i.e., around 350 kg per 4500 tonnes, i.e., 80 ppm
(parts per million). Hence, for all coal lifted by the washery the GCV must be
specified to verify the overall energetics of the process.

Considering the national trends in transit loss, the TL fixed for stations with
similar transit distances, high GCV of coal by almost 1200-1500 kcal/kg as
compared to other states a TL of 0.8 % is recommend for CIL coals
excluding Penam. Since the stations are getting majority of coals 60-90 %
from Penam, TL is applicable only to CIL coals and washed coals.

In the case of washed coals, TL on account of moisture loss must be to the
account of Washery since they have to load coals after equilibrium is reached.

The transit loss may be fully included in the scope of the liasoning agent by
linking it up with the coal cost (Rs. 30/t for 1 full rake of 4000 t for 1 % loss).

Upgrading coal handling capacity of tipplers and conveyors; and mechanical
equipment for removal of stones could bring down dummerages.

The percentage of stones at GGSSTP is on the higher side (1.2-1.8 %) and
steps need to be taken to bring them to under 0.25 % of the receipt coal.

The unloading infrastructure at the three stations needs to be
comprehensively reviewed to keep in tune with the increasing of the wagon
capacity by 20 % (with further increase to 74 t wagons in the offing) as well
as reduction in unloading time by 30 % (7 h as compared to 10 h earlier).
The upgradation of the apron feeder capacity, conveyor belt capacity, tippler
capacity, etc., needs to be studied keeping the futuristic scenario. Wagon
position equipment (in-haul out-haul betel charges or side arm charges) must
be put into service or purchase a new.

POL can be minimized by higher level of vigilance from the Liasion agent as
well as the PSPCL officials at the sending end.

Since loading is in the scope of Monnet, POL may be brought into the scope
of Monnet (presently it is 50/50 between Monnet and PSPCL).

The GGSSTP units are capable of operating at SHR of 2500 kcal/kWh which is
achievable during 2012-2013 through operational optimization and
implementing a few medium term measures as immediate measures. The
GNDTP units are capable at SHR of 2825 kcal/kWh which is achievable
during 2012-2013 through operational optimization measures.

An investment of Rs. 8.58 crores is anticipated for investment into unloading
infrastructure, coal quality and quantity measurement upgradation and
tracking of rail positions.
45

46

REFERENCES
[1] Director (RD&T), Central Mine Planning & Design Institute Ltd., Government of
India Ministry of coal & mines, Gondwana Place, Kanke Road, Ranchi - 834 031
Telephone:(0651) 2230040, (0651) 2231850/2230347/2230827 (PBX), Fax (0651)
2231851, 2231447 ; E- Mail : sandt@cmpdi.co.in

[2] GOI (1986), The Gazette of India (Extraordinary), Part II, Section 3 (ii),
No. 271,July 4, 1986, Govt. Of India, New Delhi- Department of Coal, Ministry of
Energy Notification, Controller of Publications, New Delhi-110054, pp. 1-34.

[3] Based on actual testing of coal for GCV at CIMFR, Nagpur and computed UHV
for a large number of samples and large number of mines from CPRI data base.

[3] Banarjee D., Hirani, M. and Sanyal, S.K. (2000), Coal- quality
deterioration in a coal stack of a power station, Applied Energy Vol.66, pp.
267-275.

[4] M.Siddhartha Bhatt & B.H.Narayana (2005), Towards the benchmarking of
gross unit heat rate in coal fired thermal power plants, The Journal of CPRI,
Vol. 1, No. 2, March 2005, pp. 9-18.

[5] Das B. and Hucka V.J., Control of Spontaneous Combustion of Coal
Through an Analysis of its Mechanism and the Affecting Factors, Society of
Mining Engineers of AIME, Preprint # 86-62, Presented at the SME Annual Meeting,
New Orleans, LA, March, 1986.

[6] Rees 0. W., Coolican F. C., Pierron E. D. and Beeler C. W. , Effects of
outdoor storage on Illinois steam coals, Division of the Illinois State Geological
Survey, John C. Frye, Chief Urbana, Circular No.313, 1961.

[7] MERC (Maharashtra Energy Regulatory Commission) tariff order Case No. 16 of
2008 in the matter of Truing up process for Maharashtra State Power Generation
Company Ltd.s (MSPGCL) Generating Stations for FY 2005-06, FY 2006-07 and FY
2007-08 based upon Appellate Tribunals Judgment in Appeal No. 86 and 87 of 2007
and CPRI Report and Provisional Truing up for FY 2008-09 page Nos. 84-85.

[8] Optimal design of stock pile, Electrical India, Sep 2007, pp.144-149

[9] Annual Performance Review for FY 2009-10 & Aggregate Revenue Requirement
for FY 2010-11 For Torrent Power Limited Case No. 988/2010 31st March 2010,
GERC, p.31.

[10] HERC order dated 03.05.2011 regarding petition filed by HPGCL seeking review
of the order dated 16.04.2010 in the matter of determination of HPGCLs tariff for FY
2010-11.
47

[11] 33
rd
Report of PAC (Public accounts Committee) report of 2006-07 No. 33 titled
Injudicious waiver of demurrage charges by ministry of railways submitted to 14
th

Loka Sabha, PAC No. 1818.

[12] Coal Movement on Indian Railways, Chapter 3, www.cag.gov.in/html/reports
/railways/2004_9 /chapter3.htm, pp.11/12.

[13] Report of the committee constituted to look into the adequacy of unloading
infrastructure at thermal power stations Government of India, Ministry of Power,
Central Electricity Authority (O. M. Division), 30.10.2008.

[14] Bhatnagar A., Gupta R., Pappu S., Dutta G. (2001), Mathematical Modeling for
Demurrage Reduction in Coal Transportation for an Indian Thermal Power Plant,
Capital One Services, Inc, 15000 Capital One Drive, Richmond, VA 23238, USA

[15] GoI, Gazette Notification (GSR 560(E) & 378(E), dated September 19, 1997 and
June 30, 1998, Ministry of Environment & Forests, Govt. of India.

Annex 1 CPRI Report PSERC
48

Annex 1
(Figures, Graphs & Photographs)

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

Annex 2
(Tables and Charts)

80

Table 1: Process of received coal sampling at the three PSPCL plants

RAKE WISE RAW COAL ANALYSIS
The rake-wise coal analysis is being done under supervision of Chief Chemist, Coal
Lab. at the PSPCL TPS.
PSPCL sends the rake-wise analysis results pertaining to companies within stipulated
period after collection of coal samples.
WASHED COAL (MONNET) SAMPLING & ANALYSIS
The rake-wise washed coal sampling and sample preparation work is being carried
out by PSPCL under supervision of PSPCL/company staff as per work order received
from respective companies.
Coal sample of each Rake of unloading end is being tested at PSPCL jointly by PSPCL
& company staff.
CIL RAW COAL SAMPLING AND ANALYSIS
As per new FSA the rake wise CIL coal sampling, sample preparation & testing
work is being carried out by CIL at Loading end under supervision of PSPCL Party,
i.e. M/s CIS in CCL Laboratory at loading end. PSPCL party sends the loading end
Analysis statements respective power stations.

COAL RECEIVED FROM CAPTIVE MINE (PANEM)

Coal received from PANEM collieries is being tested at PSPCL Laboratory in the
respective TPS.
REFEREE COAL SAMPLES ( PSPCL)
The referee coal samples are deposited to designated laboratory as per requirement.
The results of designated laboratory are binding to both parties.

81

Table 2: Rake wise sampling procedure for receipt coal at the three PSPCL plants.

RAKE-WISE COAL SAMPLING PROCEDURE FOR RAW COAL/RECEIPT COAL
1. The rake-wise coal sampling is being done mainly as per IS: 436 (Part-I),
(Sec-I) 1964 and coal agreements.
2. Selection of wagons is being done as per Random Table (25 % wagons out of
58 wagons rake i.e. 15 wagons)
3. Sample is collected at one point from the loaded wagon.
4. The point for collection of sample is either at the centre of the wagon or
either side of the wagon to be chosen one after the other from the first three
scheduled wagons and are repeated for subsequent selected wagons. Top
layer of about 200 mm depth at the point of sampling is scrapped for an area
of 1 meter x 1 meter and the sample is collected from there up to a depth of
0.5 (half) meter.
5. Total 15 samples containing 350 kg are brought to the coal sample
preparation room.

Table 3: Procedure for sampling of bunkered coal.
(Bunkered coal/conveyer belt coal/fired coal)
SAMPLING PROCEDURE

1. Coal samples are being collected from running coal Belts bi-hourly in each
shift. Approximately 20 kg coal sample is being collected from running coal
belts every time. About 350 kg coal sample is being collected during the day.
2. Coal samples are being tested next day for total moisture testing in lab.
3. Next day collected Conveyer belt coal sample is first passed through jaw
crusher it is then mixed properly and two times quarter coning is being done.
then into the primary crusher and crushed to 12.5 mm size.
4. One part of the reduced sample (3 mm size) is sent to laboratory for Total
Moisture (T.M.) analysis and other part is grinded to 72 micron size as shown
below.

82
Table 4: Specifications of belt weighers

Sl.
No.
Particular of Belt weighers
01 Micro processor based electronic belt weighers with communication facility to
continuously transmit the data to a control room as well as local reading.
Type: Electronic , Multi-idler type
Location: On Conveyor of width up to 1.6 m
Belt speed 1-4 m/s
02 Coal properties and capacity
Bulk density 0.8 to 1.2 t/m
3

Capacity 1300 t/h
03 Duty conditions
Moisture yes
Dust yes
Rain and high RH yes
04 Accuracy: 0.25 % or better of actual flow rate (dynamic). Weigh
idler deflection less than 0.025 mm at full load.
05 Reliability index: SAIDI (system average interruption duration index): 48
hours/year or better
SAIFI (system average interruption frequency index): 2
times/year or better
06 Overload capacity: up to 25 % with 100 % overload protection
07 Capacity range of
accuracy:
0 to 100 %
08 Electronic
components:
electronic digitiliser/monitors, cable, totaliser, sub-
totaliser, techno generator, printer, Transmission of the
impulse of flow rate as well as total quantity conveyed to
control room through communication media. Fully digital
with microprocessor and battery back-up memory.
09 Mode of
weighment primary
sensors:
Super precision stainless steel strain gauge load cell
applied in tension for highly accurate load measurement.
Hermetically enclosed measuring device, compact
designed, suitable for all customary belt widths.
Speed measurement: Brushless digital tacho provides
accurate measurement of speed.
10 Outputs: Electronic signals to control room and to local instrument
display.
Status Annunciator for set points.
Print out weight, total and error reports.
11 Provision for zero setting on empty belt and further calibration. Special
electronic calibration facility for frequent calibration checks without handling
standard weights.
12 Special trunion bushes to absorb normal shocks and transverse forces.
13 Fully automatic tare and span calibration.
14 Self-checking diagnostics for fault indications.

83
Table 5: Grades of steam/thermal/non-coking Coal

Grade Useful Heat Value
(UHV)
(kcal/kg)
UHV= 8900-
138(A+M)
Corresponding
Ash % +
Moisture %
at (60 % RH
& 40
O
C)
Gross Calorific Value
GCV (kcal/ kg)
(at 5 % moisture
level)
A Exceeding 6200 Not exceeding
19.5
Exceeding 6454
B Exceeding 5600 but
not exceeding 6200
19.6 to 23.8 Exceeding 6049 but not
exceeding 6454
C Exceeding 4940 but
not exceeding 5600
exceeding. 6049
D Exceeding 4200 but
not exceeding 4940
Exceeding 5597
E Exceeding 3360 but
not exceeding 4200
exceeding 5089
F Exceeding 2400 but
not exceeding 3360
exceeding. 4324
G Exceeding 1300 but
not exceeding 2400
exceeding 3865
Ref: coal.nic.in

Table 6: Allowable bandwidth of the UHV & GCV of coal purchase in a given grade.

Grade UHV(kcal/kg) GCV(kcal/kg) Ash, %
Lower
limit
Upper
limit
Lower
limit
Upper
limit
Lower
limit
Upper
limit
A 6200 - 6454 - - 14
B 5600 6200 6049 6454 14.1 18.3
C 4940 5600 5597 6049 18.4 23.1
D 4200 4940 5089 6049 23.2 28.5
E 3360 4200 4324 6049 28.6 34.5
F 2400 3360 3865 4324 34.6 41.5
G 1300 2400 3113 3865 41.6 49.5

84
Table 7: Effect of long term storage of coal -heat generated in stock piles.

Stage Reaction Weight Tempera
ture
(C)
Heat
generate
d
(kcal/kg
)
Adsorption Water Adsorption Gain Any temp. 2-25
Chemisorption Oxygen absorbed to form
peroxides
Gain 70 2-16
Peroxygen
decomposition

Disintegration of peroxygen
Release of water from coal

Loss 70-150 4-18
Oxycoal
formation
Formation of stable oxygen
complexes
Gain 150-230 6-27
Source: Das B. and Hucka V.J. (1986)

85
Table 8: Monthly raw coal GCV (based on conversion of UHV) and Fired coal or
bunkered coal data GCV (in kcal/kg) for FY 2009-2011. Basis: 600 kcal/kg per year
according to Banarjee et al. (2000).

GGSSTP, Ropar
Month Days of
autonomy
Theroretical
drop
kcal/kg
Receipt
coal GCV
kcal/kg
Bunkered
coal GCV,
kcal/kg
Actual
drop,
kcal/kg
Apr-09 9.37 15.40 4835.4 3995 840.4
May-09 6.53 10.74 4828.3 3992 836.3
Jun-09 6.02 9.90 4867.1 3985 882.1
Jul-09 4.92 8.09 4874.2 3980 894.2
Aug-09 5.10 8.39 4926.6 3974 952.6
Sep-09 7.35 12.08 4935.6 3950 985.6
Oct-09 4.53 7.44 4898.1 3953 945.1
Nov-09 11.52 18.94 4909.1 3945 964.1
Dec-09 15.32 25.19 4947.9 3955 992.9
Jan-10 16.38 26.92 4920.7 3960 960.7
Feb-10 16.47 27.08 4943.4 3957 986.4
Mar-10 19.22 31.59 4909.7 3959 950.7
Apr-10 20.64 33.93 4928.5 3951 977.5
May-10 21.12 34.72 5007.4 3953 1054.4
Jun-10 22.48 36.96 5008.0 3947 1061.0
Jul-10 20.42 33.57 4938.8 3948 990.8
Aug-10 25.06 41.19 4896.8 3953 943.8
Sep-10 33.31 54.76 4897.5 3955 942.5
Oct-10 36.33 59.72 4928.5 3952 976.5
Nov-10 34.19 56.20 4900.7 3956 944.7
Dec-10 31.29 51.43 4896.2 3949 947.2
Jan-11 31.45 51.69 4899.4 3947 952.4
Feb-11 25.27 41.54 4882.6 3948 934.6
Mar-11 26.58 43.70 4970.5 3944 1026.5
Apr-11 22.51 37.00 4951.8 3936 1015.8
May-11 23.89 39.28 4974.4 3939 1035.4
Jun-11 27.20 44.70 4923.3 3937 986.3
Jul-11 24.80 40.76 4898.8 3935 963.8
Aug-11 23.05 37.89 4911.0 3942 969.0
Sep-11 26.86 44.16 4958.2 3940 1018.2
Oct-11 22.70 37.31 4916.2 3938 978.2
Nov-11 24.60 40.43 4907.2 3949 958.2
Dec-11 24.07 39.57 4909.7 3950 959.7
Jan-12 18.49 30.39

86
Table 9: Annual raw coal (based on conversion of UHV) fired or bunkered coal GCV
data for FY 2009 to 2011 for the three stations.

GGSSTP, Ropar
Year
Receipt
coal
GCV
kcal/kg
Bunkered
coal
GCV,
kcal/kg
Actual drop,
kcal/kg
2009-
2010
4900.7 3967 933.7
2010-
2011
4931.7 3950 981.7
2011-
2012
4929.1 3941 988.1

GHTP, Lehra Mohabat
Year
Receipt
coal
GCV
kcal/kg
Bunkered
coal GCV,
kcal/kg
Actual drop,
kcal/kg
2009-
2010 4913.6
4077
836.6
2010-
2011 4734.6
4022
712.6
2011-
2012 4750.1
3932
818.1
87
Table 10: Analysis of drop in GCV in coal yard in other utilities.

Sl.
No.
Utility ERC Year Drop in
GCV*
(kcal/kg)
Remarks
01 Koradi TPS MERC 2008 30-150
02 Koradi TPS MERC 2011 206
03 Khaperkheda
TPS
MERC 2008 30-350
04 Khaperkheda
TPS
MERC 2011 0
05 Chandrapur TPS MERC 2008 350-450
06 Chandrapur TPS MERC 2011 179
07 Nasik TPS MERC 2008 800
08 Nasik TPS MERC 2011 102
09 Bhusawal TPS MERC 2008 975
10 Bhusawal TPS MERC 2011 295
11 Paras TPS MERC 2008 526
12 Paras TPS MERC 2011 -3 to
684
On the high side
13 Parli TPS MERC 2008 559
14 Parli TPS MERC 2011 -210 Achieved as a target parameter
by this TPS
15 Tata power MERC 2011 200
100
Air dried basis
15 % moisture basis
16 Hindusthan Zinc - 2008 100
17 OPG power 2012 150
*Between receipt coal and bunkered coal.

88

Table 11: Methods of reduction of coal yard losses.

Sl.
No.
Solutions for Management of coal in the coal yard include stockpile
management
01 Stock movement: Direct feeding of coal received from captive mines and
washery from the wagon tippler to bunker is always ideal. When this is not
feasible, the first in first out (FIFO) principle which has been universally
recommended to minimize coal yard losses may be followed. Each compacted
stockpile should be identified based on receipt date to determine first out
sequence.
02 Coals which are mined earlier than 1-6 months are less susceptible to
spontaneous ignition. It may be ensured that the coals which are immediately
removed from the earth are not loaded onto the wagons.
03 Water spraying and fogging to avoid coal losses due to spontaneous ignition
must be done only during emergency. During summer season the process of
spontaneous combustion accelerates. To control spontaneous combustion,
sprinkling of water is to be carried out at the hot spots. Sometimes these hot
spots can also be removed with loader. Use of water sprays is only to be
taken up as an emergency measures. Instead the creation of hot spots or
spontaneous burning situations must be eliminated by high compaction.
04 Fogging nozzles are recommended to be installed at various points in the
CHP for dust suppression and minimize windage losses. Use of fogging nozzles
for temperature control is not generally recommended except in emergency.
Fogging nozzles are installed in MSPGCL power plants like Chandrapur TPS.
05 Monitoring of coal stockpiles: The monitoring is required to be done at
least once in a day to identify hot spots or spontaneous combustion and its
elimination.
06 Stockpile shapes or heaps: The stock piles must be tredpziodal and not
conical in shape where the surface areas exposed is too much.
Wind socks may be installed to determine direction of the wind. The Stockpile
must be oriented for air to strike the width and not length.
Good and bad quality coal must not be blended but must be stacked
separately. The blending (if at all) must be at the bunkering belt.
07 Compaction: Coal to be stacked at height of 3-10 m, levelled and
compacted. Compaction must be done in levels of 1.5 m Carpetization of coal
to be minimized. Compaction inhibits entry of air and water into the stack.
Top surface must be sloped for water drainage.
Regular compacting of the coal & formation of the trapezoidal heaps is to
carried out with the help of coal compactors instead of bull dozers to control
the oxidation & spontaneous combustion of the coal. The use of compactors
will result in avoiding air pockets and spontaneous combustion.
When it rains water does not percolate through compacted coal.
Suppliers of Compactors: Marsmann India Ltd., Caterpiller Industries,
Multitech Services Ltd., L & T, etc.
During rainy season proper channels are to be made for drainage of rain
water from coal yards in order to avoid coal loss due to flowing out in the
89
form of coal slurry.
08 Since washed coal is costlier fuel and it has tendency to flow away due to
heavy rains, this coal is properly stacked and covered with tarpaulins during
rainy season to avoid ingress of rainy water and moisture addition.
09 Strict security of coal stock to avoid pilferage. The security arrangements need
to periodically reviewed and checked to ensure safety of the stocks.
10 Competence skill development is required to be imparted to the personnel
involved in coal heap compaction.
11 Quality management system: Development of quality management system
with written procedure for coal yard management and stockpile maintenance.
12 Professional help in stockpile management from agencies like NTPC R & D.

90
Table 12: Procedure for sample preparation of received coal at the three PSPCL
plants.

COAL SAMPLE PREPARATION
1. Coal sample is first passed through the primary crusher and crushed to 12.5
mm size; it is then mixed properly and two times quarter coning is done.
2. The coal sample is then passed through secondary crusher and crushed to 3.0
mm size; it is then mixed properly and reduced to 1.5Kg by quarter coning.
3. The coal sample is then pulverized and passed through 212 micron sieve.
Again quarter coning is done and packed in two polythene bags (250 gms
each).
4. These two coal sample packets being jointly sealed and signed by PSPCL and
respective company representatives. One coal sample is being sent to PSPCL
laboratory for analysis. Referee coal sample kept in joint custody of PSPCL
and respective company representatives.
Flow chart is given below.
Gross sample (approx 350 kg)

Crush to pass through 5 cm

Coning and quartering twice

90 kg (approx)

Crush to pass through 12.5 mm

Coning and quartering twice 22 kg (approx)

Crush to pass through 6 mm (approx)

Coning and quartering once

11 kg (approx)

Crush to pass through 3 mm (approx)

Coning and quartering successively to obtain 1.5 kg-2 kg

Grind to pass 72 mesh (212 micron)

Divide it into 2 equal parts (final samples)

91
Table 13: Procedure for testing of receipt coal

Method of testing receipt of Raw Coal at PSPCL stations

ANALYSIS: - Analysis is done as per IS 1350 (part-I)-1984. The testing
procedure in brief is as under:-
1) Total Moisture:-
Apparatus: - Ventilated drying oven in which a constant and uniform temperature of
108
o
C + 2
o
C can be maintained.
Procedure:- 10g of crushed coal (3mm size) is dried in an oven at a temperature of
108
o
C + 2
o
C for 1.5 to 3 hours until weight becomes constant. Total moisture %
age is calculated from the loss in weight as detailed below:-
Wt. of Dish = W
1

Wt. of Dish+ sample = W
2

Wt. of Dish and sample after drying = W
3

Total moisture (%) = W
2
-W
3
X 100

W
2
-W
1
2) Determination of Moisture (ADB):-
108
o
C 2
o
Procedure:- About 1 to 1.5 gm of final sample of grinded coal is uniformly spread in
the silica or glass dish and placed in the hot air oven in uncovered position at 108
o
C
2
o
C till there is no further loss in mass. This normally takes 1 to 1.5 hours. Loss in
mass due to drying as a % age of the total mass of the sample is the % age air
dried moisture in the sample.
Moisture % age is calculated from the loss in weight as per below formula:-
Wt. of Dish = W
1

Wt. of Dish + sample = W
2

3

Air Dried Moisture (%) = W
2
-W
3
X 100

W
2
-W
1

3) Determination of Ash (ADB):-
Apparatus:- Muffle furnace capable of providing 815
o
C + 10
o
C temperature
uniformly, silica / glass dish.
Procedure:- 1 gram of final sample is taken which is placed in the uncovered dish
which is put into the furnace at room temperature, then temperature is raised to 500

o
C in 30 minutes and 815 10
o
C in a further 30 to 60 minutes time. This
temperature is maintained for 60 minutes.
Ash % by mass = 100 X M
3
M
1

M
2
M
1

Where M
1
= mass in g of dish
M
2
= mass in g of dish and sample
M
3
= mass in g of dish and ash

4) Determination of Volatile Matter(ADB):-
92
Apparatus: - Cylindrical crucible with a well fitting lids both of fused silica. Electrically
heated muffle furnace in which a zone of constant and uniform temperature of 900+
10
o
Procedure: - 1gm of sample is heated in the absence of Air at 900
o
C + 10
o
C for a
period of 7 minutes. Oxidation has to be avoided as far as possible.
% volatile matter:-
= 100(M
2
M
3
) _ M
O

M
2
-M
1

Where Mo = % of moisture in the sample on dried basis
M1 = mass in g of empty crucible + lid
M2 = mass in g of crucible +lid + sample before heating, and
M3 = mass in g of crucible +lid + sample after heating.
Equilibrated moisture (moisture at 60 % relative humidity and 40
o
C):-
About 5 grams of final sample of coal is taken in a beaker of 100ml capacity. 20ml of
hot water is poured on the sample. The beaker is then swirled to wet the coal. The
contents are boiled very slowly for about 15minutes. Then the water is filtered using
a qualitative filter paper. About 1.5 g of the wet coal is taken which is spread out in
uniformly thin layer in a glass dish. The dish is placed in a desiccator, the bottom
portion of which is half filled with a solution of Sulphuric acid (Relative density 1.284
at 30
o
C) to give a relative humidity of 60 % at 40
o
C. The sample is kept in this
condition for 72 hours After 72 hours, the dish is removed from desiccator and
analysed for moisture at 108
o
C+ 2
o
C for 1 to 1.5hours in the hot air oven.
Equilibrated moisture: - = Loss in mass on drying X 100
Mass of equilibrated sample
Reporting of results:-

Equilibrated Ash: - = 100- equilibrated moisture X Air dried ash
100- Air dried moisture

Equilibrated volatile matter: - = 100- equilibrated moisture X Air dried
volatile matter
100- Air dried moisture
USEFUL HEAT VALUE:

Case- I: - When eq. moisture is more than 2% and Eq. VM is more than 19%.

UHV (kcal/kg) =8900-138[A+M]

Case- II: - When eq. moisture is less than 2% and Eq. VM is less than 19%.

UHV (kcal/kg) = [(8900-138 (A+M)] -150(19 x VM)

Coal gradation on the basis of UHV:-

Grade UHV
A >6200
93
B >5600 up to 6200
C >4940 up to 5600
D >4200 up to 4940
E >3360 up to 4200
F >2400 up to 3360
G >1301 up to 2400
Ungraded <1300
Coal gradation on the basis of Ash % (air dried basis):-

Grade Steel- I Up to Ash 15 %
Grade Steel- II >15 %up to<18%
W-I >18% up to 21%
W-II >21% up to 24%
W-III >24% up to 28%
W-IV >28% up to 35%

94
Table 14: Procedure for sample preparation of bunkered coal.
BUNKERED COAL/CONVEYER BELT COAL SAMPLE PREPARATION
PROCEDURE
PREPARATION OF LABORATORY SAMPLE
Gross Sample from RC Feeder Belt 90 kg. (Approximate)

Crushed to Pass 12.5 mm

Conning and quartering twice

22 kg. (Approximate)

Crushed to Pass through 6 mm Approximate

Conning and Quartering once

11 kg. (Approximate)

Crushed to Pass 3 mm (Approximate)

Coning and Quartering successively to obtain 1.5 kg-2 kg.

Grinded part to Pass 72 mesh (212 micron).

Grinded sample thus prepared is sent to Coal Testing Lab for its testing in which
Total Moisture, ash, Air dried Moisture, & GCV are determined.

95

Table 15: Procedure for testing of bunker coal samples.
BUNKERED COAL/CONVEYER BELT COAL TESTING PROCEDURE
Testing Methods (Proximate Analysis)

ANALYSIS: -As per IS 1350 (part-I)-1984. The testing procedure in brief is as
under:-
1) Total Moisture:-
108
o
C 2
o
Procedure:- 10g of crushed coal (3 mm size) is dried in an oven at a temperature of
108
o
C 2
o
C for 1.5 to 3 hours until weight becomes constant. Total moisture %
age is calculated from the loss in weight as detailed below:-
Wt. of Dish = W
1

Wt. of Disch+ sample = W
2

3

Total moisture (%) = W
2
-W
3
X 100

W
2
-W
1
2) Determination of Moisture (ADB):-
108
o
C 2
o
Procedure:- About 1 to 1.5 gm of final sample of grinded coal is uniformly spread in
the silica or glass dish and placed in the hot air oven in uncovered position at 108

o
C 2
o
C till there is no further loss in mass. This normally takes 1 to 1.5 hours. Loss
in mass due to drying as a % age of the total mass of the sample is the % age air
dried moisture in the sample.
Moisture % age is calculated from the loss in weight as per below formula:-
Wt. of Dish = W
1

Wt. of Dish + sample = W
2

3

Air Dried Moisture (%) = W
2
-W
3
X 100

W
2
-W
1

3) Determination of Ash (ADB):-
Apparatus:- Muffle furnace capable of providing 815
o
C 10
o
C temperature
uniformly, silica / glass dish.
Procedure:- 1 gram of final sample is taken which is placed in the uncovered dish
which is put into the furnace at room temperature, then temperature is raised to 500

o
C in 30 minutes and 815 10
o
C in a further 30 to 60 minutes time. This
temperature is maintained for 60 minutes.
Ash % by mass = 100 X M
3
M
1

M
2
M
1

Where M
1
= mass in g of dish
M
2
= mass in g of dish and sample
M
3
= mass in g of dish and ash
96
4) Volatile Matter (VM) %:- Weigh a dry clean crucible with lid. Into the crucible
weigh 1.0 gm coal sample. Insert the crucible with lid along with stand into the
muffle furnace and heat at 900 10
o
C for seven minutes in closed door condition.
Remove crucible from muffle furnace, cool the crucible first on metal plate for 5
minutes and then in a desiccator for 10 minutes.
The volatile matter Percentage of the sample= (100(M2-M3)/M2-M1)-M
Where, M = Percentage of moisture in the sample on air dried basis.
M1 = Mass in gm of empty crucible and lid;
M2 = Mass in gm of empty crucible plus lid and sample before heating; and
M3 = Mass in gm of empty crucible plus lid and sample after heating;

5) Fixed Carbon (FC) %: FC= 100- (Moisture + Ash + Volatile matter)
DETERMINATION OF GCV BY BOMB CALORIMETER
In this method the Gross Calorific value of Coal is found directly by firing a specific
amount of coal (1 g) using a Bomb Calorimeter (Model-Parr-6200 isoperibol) in its
controlled environment. The heat so produced during firing determines the calorific
value of coal automatically.

97
Table 16: List of neutral third party laboratories for testing of coal in Northern
India.

Sl.
No.
Name of Laboratory Remarks
01 CIMFR, Digwadih Campus, Ranchi Unit
P.O. Namkum
Ranchi-834010, Jharkhand.
Tel: +91-0651-
2462237/2461392/2461382/2461387
FAX : +91-0651-2462237
e-mail : oicfri@yahoo.com / cimfrunit@gmail.com

02 CIMFR, Digwadih Campus, Nagpur Unit
17/C Telenkhedi Area, Civil Lines
Nagpur-440 001, Maharastra
Tel: +91-0712-2510390, 2512190
Fax : +91-0712-2510390
e-mail : cfrinagpurunit@yahoo.com

03 CIMFR, Digwadih Campus, Bilaspur Unit
27, Kohli Chowk, Post Box : 41
Bilaspur - 495001
Chattisgarh
Tel: +91-07752-271450
Fax: +91-07752-271450
e-mail : ioc_cfrib@yahoo.co.in

04 NTPC, NETRA,
Research and Development Centre
8A, Sector-24, Noida - 201301
Distt.-Gautam Budh Nagar,
Uttar Pradesh

05 National Physical Laboratories,
Dr.K.S.Krishnan Marg,
New Delhi-110012

06 Shriram Institute for Industrial Research,
19, University Road,
New Delhi-110007

98
Table 17-1: Percentage of coal from various sources.

GGSSTP, Ropar
Sl.
No. Source 2009-2010 2010-2011 2011-2012
1 CCL
6.70 6.19 3.84
2 CCL washed 5.64 0.61 0.00
3 BCCL 22.69 10.23 11.92
4 SECL 4.12 3.37 2.32
5 MDL 2.53 12.36 15.58
6 ACBL 7.40 6.46 5.22
7 PANEM 50.81 60.44 61.08
8 ECL 0.05 0.26 0.00
9 LM 0.06 0.08 0.06

10 Total 100.00 100.00 100.00


GHTP, Lehra Mohabat
Sl. No. Source 2009-2010 2010-2011 2011-2012
1 CCL 13.8 6.7 5.4
2 ECL 0.8 0.0 0.0
3 Monnet 3.7 13.1 14.3
4 Panem 79.19 77.41 78.72
5 BCCL 2.01 2.08 1.12
6 ACBL 0.17 0.19 0.35
7 SECL 0.08 0.00 0.00
8 Others 0.24 0.55 0.08
9 Total 100.00 100.00 100.00

99

GNDTP
Sl.
No. Source 2009-2010 2010-2011 2011-2012
1 BCCL 0.7 0.6 1.1
2 CCL 28.5 14.2 5.0
3 ECL 0.5 0.3 0.4
4 Monnet 5.92 17.82 3.37
5 Pachwara (Panem) 64.26 67.10 90.11
6 Un connected 0.08 0.06 0.06
7 Total 100.00 100.00 100.00
100
Table 18-1: Cost of generation of power including fuel.

GGSSTP, Roopnagar (April 2011-December 2011)
COST OF GENERATION
Total cost (Rs. in
Lakhs)
Cost/Unit
(paise/kWh)
1 Fuel cost
Coal 184127.64 189.47
Oil 982.87 1.01

Other fuel related
expenditure 1464.03 1.51
186574.54 191.99
2 Operating expenditure
Cost of water 1132.33 1.17
Lubricants, Consumables 98.18 0.1
1230.51 1.27
3 Repair & Maintenance

Plant ,Machinery, Store &
Spares 5643.62 5.81
Buildings 336.91 0.35
Civil & Hydraulic works 335.97 0.35
Vehicles 25.88 0.03
Others 24.12 0.02
6366.5 6.56
4 Employees Cost
Regular 12756.8 13.13

Work charged & Daily
Wages 1309.48 1.35
14066.28 14.48
5 Administrative &General 183.92 0.19
6 Total cost without interest 208421.75 214.49
7 Depreciation 1824.88 1.88
8
Interest on security GH-
78 0.02 0
9 Total cost with int & dep. 210246.65 216.35

101

GGSSTP, Roopnagar (CY-2011)
COST OF GENERATION
Total cost (Rs.in
Lakhs)
Cost/Unit
(paise/kWh)
1 Fuel cost
Coal 138779.07 191.74
Oil 1038.44 1.43

Other fuel related
140813.49 194.55
939.83 1.3

Plant ,Machinery, Store &
Spares 4826.82 6.67
Vehicles 13.57 0.02
Others 17.59 0.02
5236.24 7.23
4 Employees Cost
Regular 11536.66 15.94

Wages 940.88 1.3
12477.54 17.24
5 Administrative &General 171.52 0.24
6 Total cost without interest 159638.62 220.56
7 Depreciation 0 0
8
Interest on security GH-
78 0 0
9 Total cost with int & dep. 159638.62 220.56

102

GNDTP, Bhatinda (April 2011-December 2011)
COST OF GENERATION
Total cost (Rs.in
Lakhs)
Cost/Unit
(paise/kWh)
2 Fuel consumption cost
Coal 36327.02 204.64
HPS 0 0
LDO 927.1 5.22
FO 1413.19 7.96
Fuel related 556.04 3.13
39223.35 220.95
Operating Expenditure

Cost of water, lubricants
consumable, stores etc. 374.59 2.11
3 Cost of repair& mtc. 1808.67 10.19
4 Employees Cost
Regular 8439.95 47.54
Work charge 57.8 0.33
8497.75 47.87
5 Admn. Gen Expenses 95.82 0.54
6 Cost without intt. &dep. 50000.18 281.66
7 Cost of Capital
Cost of working capital 1144.96 6.45

Intt. On fixed capital (as
per MIR) 220.2 1.24
1365.16 7.69
8
Dep. As per perforamnce
budget (As per MIR) 649.92 3.66
9 Total cost of Generation 52015.26 293.01

103

GNDTP, Bhatinda (CY-2011)
COST OF GENERATION
Total cost (Rs.in
Lakhs)
Cost/Unit
(paise/kWh)
2 Fuel consumption cost
Coal 30927.51 215.9
HPS 0 0
LDO 247.59 1.73
FO 848.64 5.92
Fuel related 186.47 1.3
32210.21 224.85
Operating Expenditure

Cost of water, lubricants
consumable, stores etc. 226.91 1.58
3 Cost of repair& mtc. 1039.11 7.26
4 Employees Cost
Regular 8034.26 56.09
Work charge 19.79 0.14
8054.05 56.23
5 Admn. Gen Expenses 66.45 0.46
6 Cost without intt. &dep. 41596.73 290.38
7 Cost of Capital
Cost of working capital 709.38 4.95

Intt. On fixed capital (as
per MIR) 165.15 1.16
874.53 6.11
8
Dep. As per perforamnce
budget (As per MIR) 487.44 3.4
9 Total cost of Generation 42958.7 299.89

104

GHTP CY-2011

COST OF
GENERATION
Total cost (Rs.in
Lakhs)
Cost/Unit
(paise/kWh)
1 Fuel cost
Coal 124097.45 175.33
Oil 1100.33 1.16

Other fuel related
127021.72 177
297.67 0.3

Plant ,Machinery,Store &
Spares 3555.69 4.5
Other Works 0 0
Vehicles 9.22 0.04
3877.3 4.86
4 Employees Cost
Regular 5915.77 7.6

Wages 10.81 0.02
Admn. Expenses 154.13 0.18
6080.71 7.8
Total cost 137277.4 189.96 189.96

105
Table 19 -1: Cost of generation of power including fuel- various components of coal.

FY 2010-11 GGSSTP, Roopnagar
Total (Lakhs) Rs./ t Percentage( %) paise/kWh
Cost of coal & Freight 181052.201 2825.39 97.55 186.30
Cost of coal other than stock 1518.189 23.69 0.82 1.56
Demmurage Charges 325.500 5.08 0.18 0.33
Siding Charges 40.522
0.63 0.02 0.04
Penal Overloading 83.131
1.30 0.04 0.09
Commission to agents 459.694 7.17 0.25 0.47
Payment to railway staff 45.682 0.71 0.02 0.05
Derailment Charges 1.537 0.02 0.00 0.00
Other Coal related cost 508.109 7.93 0.27 0.52
Transit loss 702.047
10.96 0.38 0.72
Picked stone 584.123
9.12 0.31 0.60
Mill Reject 276.709 4.32 0.15 0.28
Total 185597.444 2896.32 100.00 190.98
Quantity (t) 6408051

FY 2012 Till date GGSSTP, Roopnagar
Total (Lakhs) Rs./ t Percentage( %) Paise/kWh
Cost of coal other than stock 345.439 7.42 0.25 0.47
Siding Charges 22.059
0.47 0.02 0.03
Penal Overloading 174.994
3.76 0.13 0.24
Other Coal related cost 409.337 8.80 0.29 0.56
Transit loss 487.835
10.49 0.35 0.66
Picked stone 428.074
9.20 0.31 0.58
Mill Reject 208.915 4.49 0.15 0.28
Total 139775.050 3004.22 100.00 189.74

106

CY 2011 GNDTP, Bhatinda
Total (Lakhs) Rs./ t Percentage( %) Paise/kWh
Cost of coal other than stock 0.00 0.00 0.00
Siding Charges
0.00 0.00 0.00
Penal Overloading 0.127 0.01 0.00 0.001
Loss on settlement with rail claim 0.580 0.04 0.00 0.00
Other Coal related cost 0.00 0.00 0.00
Transit loss 9.932 0.70 0.02 0.05
Loss on account of stone below
200 mm
75.425 5.32 0.18 0.40
Coal handling contract charges 97.405 6.88 0.24 0.52
Total 41076.085 2899.75 100.00 217.20

107

CY 2011 GHTP, Lehra Mohabbat
Total (Lakhs) Rs./ t Percentage( %) paise/kWh
Coal Handling contract 403.810 9.23 0.32 0.56
Demmurage Charges 14.590
0.33 0.01 0.02
Siding Charges 0.00 0.00 0.00
Penal Overloading 61.210 1.40 0.05 0.09
Other Coal related cost 0.280
0.01 0.00 0.00
Transit loss 492.230 11.25 0.39 0.69
Picked stone 619.960 14.17 0.49 0.87
Mill Reject 132.620 3.03 0.11 0.19
Total 125921.360 2878.20 100.00 175.84

108
Table 20-1 : Unit cost of coal.
GGSSTP coal data for all 3 years

GCV
(kcal/kg)
Coal cost
(Rs./t)
Freight cost
(Rs./t)
Landed cost
(Rs./t)
Cost of Energy
(Rs./Gcal)
2009-10
ARYAN 4636.2 1286.1 1719.0 (*) 3005.2 648.2
CCL 4443.1 1220.3 1221.9 2442.2 549.7
MDL 4707.1 1991.4 1561.5 (*) 3552.9 754.8
PANEM 5032.6 1057.0 1471.4 2528.4 502.4
SECL 5352.3 1523.2 1264.5 2787.7 520.8
2010-11
ARYAN 4654.7 1338.4 1887.0 (*) 3225.4 692.9
CCL 4600.4 1237.5 1350.9 2588.4 562.6
MDL 4725.9 1746.6 1760.2(*) 3506.9 742.1
PANEM 4977.3 1170.3 1392.9 2563.3 515.0
SECL 5423.1 1900.6 1472.1 3372.6 621.9
2011-12
ARYAN 4639.7 1664.2 2051.8(*) 3716.1 800.9
CCL 4617.2 1422.2 1463.6 2885.8 625.0
MDL 4712.0 1777.2 1820.2(*) 3597.4 763.4
PANEM 4979.1 1227.4 1662.7 2890.2 580.5
SECL 5393.4 2183.3 1333.6 3516.8 652.1
(*) Based on the original weight of coal supplied , i.e, whole process.

109
Table 20-2: Unit cost of coal.

GHTP coal data for all 3 years

GCV
(kcal/kg)
Coal cost
(Rs/t)
Freight cost
(Rs/t)
Landed
cost (Rs/t)
Cost of energy
(Rs./Gcal)
2009-10
CCL 4432.6 1124.3 1411.8 2536.1 572.1
MONNET 4695.0 2057.5 1833.1(*) 3897.5 791.1
PANNAM 5030.4 1023.6 1557.2 2580.8 512.9
DVT IN 4748.9 1135.1 1486.7 2621.8 552.3
GRAND TOTAL 4915.6 1068.3 1526.4 2594.8 527.8
2010-11
CCL 4256.4 1201.2 1445.8 2647.0 626.0
MONNET 4657.8 1763.3 1832.4(*) 3679.4 790.0
PANNAM 4818.6 1065.1 1569.2 2634.3 546.8
DVT IN 4590.4 1241.5 2047.4 2745.2 598.6
GRAND TOTAL 4739.2 1132.1 1603.4 2735.5 577.2
2011-12
CCL 4632.8 1386.1 1496.1 2882.2 622.5
MONNET 4695.6 1630.0 1884.1(*) 3514.1 748.4
PANNAM 4785.7 1073.7 1603.6 2677.2 559.4
DVT IN 4679.6 1166.0 1606.5 2772.5 588.4
GRAND TOTAL 4747.4 1135.0 101135.0 2850.4 596.4

110
Table 20-3: Unit cost of coal.

GNDTP coal data for all 3 years

GCV
(kcal/kg)
Coal cost
(Rs/t)
Freight
cost (Rs/t)
Landed
cost
(Rs/t)
Cost of energy
(Rs./Gcal)
2009-10
CCL 4426.3 1096.4 1436.5 2532.9 572.2
PANNEM 4999.9 1032.8 1547.2 2580.0 516.0
MONNET 4674.9 1648.3 1815.8(*) 3464.1 741.2
GRAND TOTAL 4802.9 1083.9 1526.7 2610.7 543.6
2010-11
CCL 4574.4 1139.3 1440.7 2580.0 564.1
PANNEM 4962.0 1124.7 1556.6 2681.3 540.6
MONNET 4671.3 1519.5 1804.4(*) 3323.9 711.5
GRAND TOTAL 4871.2 1188.3 1579.1 2767.4 568.5
2011-12
CCL 4561.4 1191.2 1665.2 2856.4 626.0
PANNEM 4957.9 1171.0 1616.9 2788.0 562.0
MONNET 4670.2 1656.7 2053.2(*) 3710.0 796.4
GRAND TOTAL 4929.5 1204.3 1613.8 2818.1 570.3
(*) Based on the original weight of coal supplied , i.e, whole process

111
Table 21-1: Unit cost of coal compared with and without washing charges.

GGSSTP MONNET with and without washing charges for 3 years

GCV
(kcal/
kg)
Coal
cost
(Rs/t)
Freight
cost
(Rs/t)
(*)
Landed
cost
(Rs/t)
Cost of
energy
(Rs./Gcal)
2009-10
MONNET without
washing charges 4707.1 1991.4 1561.5 3552.9 754.8
MONNET with
washing charges 4695.0 2103.4 1561.5 3664.9 780.6
2010-11
MONNET without
washing charges 4725.9 1746.6 1760.2 3506.9 742.1
MONNET with
washing charges 4657.8 1858.6 1760.2 3618.9 777.0
2011-12
MONNET without
washing charges 4712.0 1777.2 1820.2 3597.4 763.4
MONNET with
washing charges 4695.6 1889.2 1820.2 3709.4 790.0
112

GHTP MONNET with and without washing charges for 3 years

GCV
(kcal/kg)
Coal cost
(Rs/t)
Freight
cost
(Rs/t)
(*)
Landed
cost
(Rs/t)
Cost of
energy
(Rs./Gcal)
2009-10
MONNET without
washing charges 4695.0 2057.5 1833.1 3897.5 791.1
MONNET with
washing charges 4695.0 2169.5 1833.1 4002.6 852.5
2010-11
MONNET without
washing charges 4657.8 1763.3 1832.4 3679.4 790.0
MONNET with
washing charges 4657.8 1875.3 1832.4 3707.7 796.0
2011-12
MONNET without
washing charges 4695.6 1630.0 1884.1 3514.1 748.4
MONNET with
washing charges 4695.6 1742.0 1884.1 3626.1 772.2

GNDTP MONNET with and without washing charges for 3 years

GCV
(kcal/kg)
Coal
cost
(Rs/t)
Freight
cost
(Rs/t)
(*)
Landed
cost
(Rs/t)
Cost of
energy
(Rs./Gcal)
2009-10
MONNET without
washing charges 4674.9 1648.3 1815.8 3464.1 741.2
MONNET with
washing charges 4674.9 1760.3 1815.8 3576.1 765.0
2010-11
MONNET without
washing charges 4671.3 1519.5 1804.4 3323.9 711.5
MONNET with
washing charges 4671.3 1631.5 1804.4 3435.9 735.5
2011-12
MONNET without
washing charges 4670.2 1656.7 2053.2 3710.0 796.4
MONNET with
washing charges 4670.2 1768.7 2053.2 3822.0 818.4
113
Table 22-1: Total annual fuel cost.

GGSSTP Total cost for 2009-10
Company
( 2009-10)
QTY
RECEIVED
COAL COST
(Rs. Cr)
FREIGHT
COST (Rs. Cr)
TOTAL
COST ( in
Rs. Cr)
ARYAN 408708.7 52.6 70.3 122.8
BCCL 1560473.352 252.2 196.6 448.8
CCL 682587.828 83.3 83.4 166.7
MDL 79864.28683 15.9 12.5 28.4
PANEM 2737003.38 289.3 402.7 692.0
SECL 284612.2667 43.4 36.0 79.3
DIVERTED COAL 1028745.134 104.6 159.5 264.1
UNCONNECTED 11795.51054 1.2 1.5 2.7
PIECE MEAL 1082.272656 0.1 0.2 0.3
GRAND TOTAL 6917015.982 842.6 962.6 1805.2
ARYAN 339030.1 45.4 64.0 109.4
BCCL 663290.1 139.3 90.3 229.5
CCL 394881.9 48.9 53.3 102.2
MDL 592210.5 103.4 104.2 207.7
PANEM 3550390.3 415.5 494.6 910.1
SECL 217385.5 41.3 32.0 73.3
DIVERTED COAL 560511.2 57.8 94.5 152.2
UNCONNECTED 15132.7 1.6 2.0 3.6
PIECE MEAL 177.2 0.0 0.0 0.1
GRAND TOTAL 6565819.6 853.1 934.9 1788.0
ARYAN 186869.8 31.1 38.3 69.4
BCCL 523656.3 105.0 77.5 182.5
CCL 173526.2 24.7 25.4 50.1
MDL 547922.3 97.4 99.7 197.1
PANEM 2565432.8 314.9 426.6 741.4
SECL 108859.3 23.8 14.5 38.3
DIVERTED COAL 312526.2 33.6 58.9 92.4
UNCONNECTED 8192.8 0.9 1.2 2.0
PIECE MEAL 0.0 0.0 0.0 0.0
GRAND TOTAL 4610683.7 631.2 742.1 1373.3

114

GHTP Total cost for all 3 years.
2009-10
Name QTY RECEIVED
COAL COST
(Rs. Cr)
FREIGHT COST
(Rs. Cr)
TOTAL COST
( in Rs. Cr)
CCL 517602.13 5734.69 7242.29 12976.98
MONNET 217640.8875 2679.23 2551.89 5242.44
PANNAM 3278969.78 33608.3 51061.29 84669.59
DVT IN 624705.42 7097.71 9260.95 16358.66
GRAND TOTAL 4595390.04 49119.93 70116.42 119236.35
2010-11
Name QTY RECEIVED
COAL COST
(Rs. Cr)
FREIGHT COST
(Rs. Cr)
TOTAL COST
( in Rs. Cr)
CCL 246597.76 2950.49 3546.96 6497.45
MONNET 381228.704 6479.98 6953.87 13923.52
PANNAM 2903885.82 30753.25 45411.37 76164.62
DVT IN 668696 8294.44 12673.69 18416.9
GRAND TOTAL 4295715.46 48478.16 68585.89 117064.05
2011-12
Name QTY RECEIVED
COAL COST
(Rs. Cr)
FREIGHT COST
(Rs. Cr)
TOTAL COST
( in Rs. Cr)
CCL 132580.79 1825.34 1995.69 3821.03
MONNET 372115.6 6065.47 7023.43 13088.9
PANNAM 2183777.13 23536.52 35424.82 58961.34
DVT IN 577052.04 6723.98 9501.01 16224.99
GRAND TOTAL 3358554.46 38151.31 3396705.77 95863.26

115

GNDTP total cost for the 3 years.
2009-10
Name
QTY
RECEIVED
COAL
COST
(Rs. Cr)
FREIGHT
COST (Rs.
Cr)
TOTAL
COST ( in
Rs. Cr)
CCL 557543.65 59.66 79.39 139.04
MONNET 152007.41 16.18 17.67 33.84
PANNAM 1130599.24 117.50 175.26 292.76
DVT IN 242183.32 25.68 36.63 62.32
UN CONNECTED 1601.92 0.17 0.24 0.41
GRAND TOTAL 2083935.54 219.19 309.18 528.37
2010-11
Name
QTY
RECEIVED
COAL
COST
(Rs. Cr)
FREIGHT
COST (Rs.
Cr)
TOTAL
COST ( in
Rs. Cr)
CCL 183059.03 21.01 26.43 47.44
MONNET 174213.82 26.03 31.48 57.51
PANNAM 785219.86 88.23 122.54 210.77
DVT IN 160042.54 18.80 24.40 43.20
UN CONNECCTED 783.44 0.10 0.14 0.24
GRAND TOTAL 1303318.68 154.17 204.99 359.16
2011-12
Name
QTY
RECEIVED
COAL
COST
(Rs. Cr)
FREIGHT
COST (Rs.
Cr)
TOTAL
COST ( in
Rs. Cr)
CCL 37012.13 4.76 5.97 10.72
MONNET 12649.60 2.10 2.60 4.69
PANNAM 845620.41 99.09 136.56 235.65
DVT IN 149230.38 19.84 23.61 43.45
UN CONNECCTED 586.26 0.07 0.09 0.16
GRAND TOTAL 1045098.78 125.85 168.82 294.67

116

Table 23: Analysis of TL in other utilities.

Sl.
No.
Utility ERC Year TL (%)
(Approved)
TL (%)
(Achieved)
Remarks
01 NTPC TPS CERC 2011 0.8
0.3
0.8-1.0
0.3-0.4
Non-pit head
Pit head
02 Indira prasta DERC 2011 0.8 3.8 Also includes washed
coal received from
CIL
03 Ukai GERC 2010 1.2 1.34 Approved 0.8 in
2011-12
04 Gandhinagar GERC 2010 1.4 0.48 Approved 0.8 in
2011-12
05 Torrent Power GERC 2009 1.4 3.13 Distance 1300 km
SECL
06 Wanakbori GERC 2009 1.5 1.5 Approved 0.8 in
2011-12
07 Sikka GERC 2009 2.0 0 Approved 0.8 in
2011-12
08 Panipat HERC 2011 1.0 5.26
09 Yamnuanagar HERC 2011 1.0 9.09
10 Hissar HERC 2011 1.0 6.96
11 Amarkantak MPERC 2011 0.3 Pit head
12 SGTPS MPERC 2011 0.9
13 STPS MPERC 2011 0.8
14 KTPS RERC 2010 2.0 1.8 660-1013 km, NCL,
SECL
15 SSTPS RERC 2011 2.0 1.29 1600-1700 km, NCL,
SECL
16 Korba East
bank
CSERC 2011 1.5 1.25 % TL + 0.25 %
Stacking loss
17 HTPS CSERC 2011 0.25 Stacking loss of 0.25
%
18 Bihar TPSs BERC 2011 3.8 4.0 Baranui
19 Andhra APERC 2010 2.05-3.03

117

Table 24-1: Source wise TL for 3 years.

Transit loss (% of receipt coal) GGSSTP
Month &Year
2009-10 2010-11 2011-12
BCCL -0.17 -0.43 -0.16
CCL 1.13 0.78 2.49
SECL 7.01 3.36 2.67
ACBL 1.42 1.22 2.42
MDW 2.10 1.97 1.28
PANEM Coal
0.00 0.00 0.00
Total including
Panem
0.61 0.47 0.49
Total excluding
Panem
1.15 1.15 1.23


Transit loss (% of receipt coal) GHTP
Month & Year Name 2009-10 2010-11 2011-12
CONSIGNED
CCL 1.25 -0.27 1.86
MONNET 1.55 1.78 1.35
ECL -2.21
PANEM -1.12 -1.77 -3.26
DIVERTED IN
CCL 1.37 0.93 0.23
MONNET 3.4 1.93 0.01
ECL 6.74
PANEM 2.63 3.26 0.72
ACB -3.83 -7.05 2.74
BCCL -0.2 1.76 -0.08
WCL 0
SECL 1.6
OTHER -0.89 7.83 -1.05

Total (incl.
Panem) 0.25 0.31 0.29

Total (Excl.
Panem) 1.16 1.33 1.25

118

Transit loss (% of receipt coal) GNDTP Bhatinda

2009-10 2010-11 2011-12
CCL 0.55 -1.41 -1.17
BCCL 3.37 2.34 3.89
ECL 2.65

MONNET 0.62 0.70 0.38
Unconnected 5.21 7.29 1.14
SECL

2.39 2.31
Total WITH PANEM 0.24 -0.05 0.01
Total WITH OUT PANEM
0.66 -0.15 0.08

119
Table 25: Methods of reduction of transit losses.

Sl.
No.
Solutions Reduction of transit loss
01 Mapping/identification of specific locations where coal is being removed. GPRS
tracking of railway movements.
02 Informing the Railway police force about the likely thefts. Contact Railway
Protection Force in respective area must be contacted/employed for eliminating
coal theft from loaded rakes. Insisting railway Police Force to have constant
vigilant watch during movement of coal.
03 Periodically calibrating and maintaining the power station weigh bridges is
required. Calibration and sealing of weigh bridges at regular interval at the
loading and unloading end is being done. The down time of weigh bridges must
be recorded.
04 Visiting and carrying out the inspection of the weigh bridges where transit loss is
found increased. A team consisting of Senior Officers must be formed for
surprise checking weighbridges at colliery end on periodical basis at all CIL
collieries.
05 Requesting railway authority to reduce or eliminate number of stoppages of
rakes in transit.
06 Claims for transit losses are being lodged with the Railways. This must be
pursued rigorously.

120
Table 26-1: Demmurages on coal wagons to railways.

Calendar Year 2011 GHTP,Lehra Mohabbat
Months
Demurrage
raised
Demurrage
waive off
% waived off
Balance
Demurrage
% paid
Rs.In lakhs Rs.In lakhs % Rs.In lakhs %
January 0.85 0.17 20.00 0.68 80.00
February 1.26 0.27 21.17 0.99 78.83
March 2.10 0.19 9.21 1.90 90.79
April 3.06 0.58 18.89 2.48 81.11
May 5.10 1.17 23.05 3.92 76.95
June 4.47 0.94 20.98 3.53 79.02
July 4.69 1.13 24.06 3.56 75.94
August 14.45 3.54 24.50 10.91 75.50
September 3.51 0.91 25.82 2.60 74.18
October 0.64 0.13 20.00 0.51 80.00
November 2.96 0.81 27.41 2.15 72.59
December 6.69 0.43 6.43 6.26 93.57
Total for
Year 2011 49.76 10.26 20.13 39.49 79.87

121

Calendar Year 2011 GNDTP, Bhatinda
Months
Amount
billed by
railways
Amount
waived off
% waived off Balance to
be paid
% paid
Rs. in lakhs Rs. in lakhs % Rs. in lakhs %
Jan.11 1.94 0.43 21.98 1.51 78.02
Feb.11 1.17 0.18 15.24 0.99 84.76
March.11 0.62 0.06 9.03 0.56 90.97
April.11 3.49 0.83 23.78 2.66 76.22
May.11 3.03 0.70 22.99 2.33 77.01
June.11 4.86 1.12 22.96 3.75 77.04
July.11 7.31 1.77 24.24 5.54 75.76
Aug.11 19.57 5.74 29.32 13.83 70.68
Sep.11 15.26 5.16 33.85 10.09 66.15
Oct.11 6.75 1.00 14.77 5.75 85.23
Nov.11 4.93 1.05 21.23 3.88 78.77
Dec.11 3.45 0.64 18.42 2.82 81.58
Total for
Year 2011 72.37 18.66 21.49 53.71 78.51

122

Calendar Year 2011 GGSSTP, Roopnagar
Months
Amount billed
by railways
Amount
waived off
% waived
off
Balance to
be paid % paid
Rs. in lakhs Rs. in lakhs % Rs. in lakhs %
Jan.11 18.99 3.65 19.21 15.34 80.79
Feb.11 18.91 3.78 20.00 15.13 80.00
March.11 92.17 20.81 22.58 71.36 77.42
April.11 42.38 7.96 18.79 34.41 81.21
May.11 23.76 4.75 20.00 19.00 80.00
June.11 78.49 16.01 20.39 62.48 79.61
July.11 17.98 4.28 23.78 13.71 76.22
Aug.11 41.86 11.86 28.33 30.00 71.67
Sep.11 32.07 8.83 27.53 23.24 72.47
Oct.11 12.25 2.41 19.66 9.84 80.34
Nov.11 9.95 1.81 18.16 8.14 81.84
Dec.11 27.69 0.00 0.00 27.69 100.00
Total for
Year 2011
416.50 86.14 19.87 330.36 80.13

123
Table 27-1 : Source wise receipt of rakes for 3 years.
Rakes received /year for GGSSTP
Name 2009-10 2010-11 2011-12
CCL 82 94 49
Washed 98 7 0
BCCL 424 185 185
SECL 86 62 34
MDW 30 201 205
ACBL 138 112 73
PCML 755 970 804
ECL 0 0 0
Total 1613 1631 1350

Table 27-2: Source wise receipt of rakes for 3 years.
Rakes received /year for GHTP Lehra Mohabbat

2009-10 2010-11 2011-12
CCL
171 74.5 49
ECL
11 0 0
Panem
999 901 690
Monnet
37 149.5 124
ACB
2 2 3
BCCL
25 25 10
SECL
1 1 0
LM
0 5 0
TOTAL
1246 1158 876

Table 27-3: Source wise receipt of rakes for 3 years.
Annual rakes received for GNDTP Bhatinda

2009-10 2010-11 2011-12
CCL 190 69 17
Monnet 5 51 18
Panem 357 244 245
Total 552 364 348

124
Table 28: Steps involved in unloading of coal

Sl.
No.
Wagon unloading steps involved
01 Receipt of rake and change over to the shunter engine of
the TPS.
02 Segregation of wagons in groups of 6-10 to take them to
individual wagon tipplers.
03 Placement of wagons, tippling and removal wagons from
each wagon tippler.
04 Re-assembly of wagons in the original formation by local
shunter engine.
05 Handling over of the rake to the railways.

Table 29: Measured time for unloading wagons (N BOX) at GGSSTP
Time per BOX N wagon for GGSSTP, Ropar
Wagon
tippler
Positioning time Tippling time Clearing time
from*
Total time
Onward
tipple
Return tipple
WT 1 2 min: 55 s 1 min: 30
s
1 min: 25 s 4 min: 15 s 5 min: 50 s
WT 2 2 min: 30 s 1 min: 10
s
1 min: 10 s 4 min: 50 s 4 min: 50 s
WT 3 2 min: 30 s 1 min: 10
s
1 min: 10 s 5 min: 15 s 5 min:15 s
WT 4 2 min: 55 s 1 min: 20
s
1 min: 10 s 4 min: 00 s 5 min: 25 s
WT 5 2 min: 45 s 1 min: 10
s
1 min: 00 s 4 min: 45 s 5 min: 55 s
*Coal slightly wet

125

Table 30: Measured time for unloading wagons (N BOX) at GNDTP.
Time per BOX N wagon for GNDTP, Bhatinda
Wagon
tippler
Positioning time Tippling time Clearing time
from*
Total time
Onward
tipple
Return
tipple

WT 1 2 min: 30 s 1 min: 15 s 1 min: 15 s 14 min: 35 s 14 min: 35 s
WT 2 2 min: 30 s 1 min: 15 s 1 min: 10 s 14 in: 55 s 14min: 55 s
*Coal slightly wet

Table 31: Unloading infrastructure at the three TPS.

Sl.
No.
Particulars Unit
GGSSTP,
Roopnag
ar
GNDTP,
Bhatind
a
GHTP,
Lehra
Mohabbat
1 Installed capacity MW 1260 440 920
2 CHP capacity t/h 4000 1000 4000
3 No. of wagon tipplers no. 5 2 4
4
Capacity of each wagon
tippler
t/h 1000 500 1000
5 No. of tipples/h tipples/h 12-14 5-4 12-14
6 Wagon capacity t 70 70 70
7
Actual capacity of coal
handling
t/h 3360 540 3360
8 Coal feeder at wagon
tippler hopper
- apron vibrator
y
apron
9 No. of rakes received/
year
no. 1350 348 876
10 No. of rakes received/
day
no. 4-5 1-2 3-4
11 Other infrastructure
besides wagon tipplers
for BOX N
Track
hopper
for
bottom
opening
rakes
Pokaline
,
Manual
unloadin
g by
side
opening
of
wagons
Track
hopper for
bottom
opening
rakes

126

Table 32-1: Source wise incurrence of POL for 3 years.
POL (Rs. L ) of GGSSTP

2009-10 2010-11 2011-12
BCCL
108.7 109.6 70.7
CCL
77.1 34.5 23.7
SECL
23.1 2.3 0.4
ACB
1.0 0.7 1.0
Monnet
6.4 34.7 201.4
TOTAL 216.2 181.8 297.2

POL charges (Rs. L) GHTP Lehra Mohabbat

2009-10 2010-11 2011-12
CCL 66.83 60.16 16.63
ECL 1.21 0.00 0.00
Monnet 15.38 8.70 154.69
Total 83.42 68.86 171.31

POL charges (Rs. L) GNDTP Bhatinda
2009-10 2010-11 2011-12
CCL 269.02 12.66 4.48
Monnet 7.75 9.74 0
Total 276.77 22.40 4.48

127

Table 33-1: Stones receipt from CIL coal for 3 years.
Quantity of stones at GGSSTP
Period % of stones *
Rebate realised from CIL In
Rs.
FY 2009-10 1.3
Claims has been lodged but no
rebate has been realised so for.
FY 2010-11 1.2
FY 2011-12 ( Upto 02/12) 1.8
*% of CIL reciept coal.

Stones collected at GHTP
Year
% of stones *
Amount
debited
to CCL
Amount
realised, Rs.
L
Balance
Amount, Rs.
L
2009-10 0.10 15.19 2.54 12.65
2010-11 0.35 23.82 0.00 23.82
2011-12
( upto Nov-11) 0.41 18.95 0.00 18.95


Stones collected at GNDTP
Year
% of stones *
Rebate realized from coal India
for stones ( Rs. L)
2009-10
0.3
5.71
2010-11
0.5
Nil
2011-12(upto dec-11)
0.1
nil

128
Table 34-1: Generation & sale of mill rejects for 3 years.

DETAILS OF QUANTITY OF MILL REJECT AT GGSSTP
Period
Quantity of mill
reject
generated In t
Quantity of
Mill reject
sold In t
Amount
realised for
the sale of
same In
(Rs.L) % rejects
Amount
Rs/t
2009-10 15676 11745 21 0.2 549.86
2010-11 9080 5647.55 14 0.1 406.88
2011- 12
(Upto
02/12) 10836 4936.28 12 0.2 405.79

Table 34-2: Generation & sale of mill rejects for 3 years.

Sale of mill rejects at GHTP, Lehra Mohabat
Year % rejects Qty.t Amount , Rs. L Rs./t
2009-10 0.03 1168 2.19 187.5
2010-11 0.06 2640 4.95 187.5
2011-12(Upto 12/11) 0.07 2272 4.26 187.5

Table 35: SHR of stations of comparable age and units.

Sl.
No.
Utility SHR
kcal/kWh
Coal
GCV
Kcal/kg
Remarks
01 Sipat 2357 3410 NTPC
02 Dadri 2394 3845 NTPC
03 Farakka 2407 3016 NTPC
04 Simhadari 2349 2328 NTPC
05 Korba 2371 3347 NTPC
06 Kota 2513 3679 Rajasthan
07 Suratgarh 2478 3681 Rajasthan
08 Vijayawada 2360 3274 AP
09 Khaparakheda 2653 3359 Maharashtra
10 Raichur 2577 3749 Karnataka

129

Annex 3
(Comments by PSPCL)

130

COMMENTS GIVEN BY PSPCL

Sub: The report of the committee regarding reply to the observations /
suggestions of Fuel Audit report submitted by CPRI to PSERC.
Punjab State Electricity Regulatory Commission (PSERC) has appointed CPRI,
Bangalore for carrying out the Fuel Audit of PSPCL's thermal power stations.
Secretary, PSERC vide his office Memo. No. 1603 dated 18.05.2012 has forwarded a
copy of fuel audit report conducted by CPRI and has asked PSPCL to furnish the
comments on the audit report by 06.06.2012 positively.
The reply to various observations of fuel audit is as under:
I. Drop in GCV of receipt and bunkered coal
(A) During the period of fuel audit:
A reference in this regard was also received earlier vide PSERC letter No.
PSERC/Tariff/T/ 152/10597 dated 27.02.2012 and PSPCL reply was forwarded to the
commission vide Chief Engineer/ARR & TR, PSPCL office memo No.
387/CC/DTR/Dy. CAO/234 dated 16.03.2012 (Annexure-I), wherein the reasons for
reduction in drop of GCV between the receipt and bunkered coal were intimated.
CPRI at Page-12 of the report has given the variation in GCV drop at GGSSTP
Ropar and GHTP Lehra Mohabbat during the past 3 years, which is given hereunder:
GGSSTP Ropar
Year
Receipt coal GCV
Kcal/Kg
Bunkered coal GCV,
Kcal/Kg
Actual drop
Kcal/Kg
2009-10 4900.7 3967 933.7
2010-11 4931.7 3950 981.7
2011-12 4929.1 3941 988.1

GHTP Lehra Mohabbat
Year
Receipt coal GCV
Kcal/Kg
Bunkered coal GCV,
Kcal/Kg
Actual drop
Kcal/Kg
2009-10 4913.6 4077 836.6
2010-11 4734.6 4022 712.6
2011-12 4750.1 3932 818.1

CPRI has observed that the decrease in GCV of bunkered coal could be due to
over valuation of receipt coal and drop in GCV should not exceed a value of 150
Kcal/Kg.
The data in respect of GCV of receipt coal mentioned in CPRI's report, as
given in the tables above, was neither supplied nor measured by PSPCL thermal
power stations, as only UHV was being calculated for making payments to different
coal companies. However, the data in respect of GCV of bunkered coal was actually
131
measured by thermal power stations on fired basis and the figures of GCV on fired
basis were given to CPRI.
CPRI has worked out the GCV of received coal on Air Dried Basis (ADB) by
back calculation from UHV on equilibrated basis by using the empirical formulae
given under Sr. No (ii) at Page-11 of the CPRI report. GCV under ADB conditions will
be more than GCV on fired basis owning to difference in moisture. This has resulted
into higher value of GCV of received coal in comparison to that of bunkered coal on
fired basis. Thus comparison of GCV of received coal on ADB determined by
empirical formulae with GCV of bunkered coal on fired basis by Bomb Calorimeter is
not under similar conditions with regard to moisture content and method of testing,
which has resulted into drop in GCV of bunkered coal on fired basis w.r.t. receipt
coal.
CPRI at Page-11 in its report has recommended as under:

" The GCV of both receipt coal as well as bunkered coal can be either represented as
Air dried basis (ADB) where the GCV is determined by drying the sample in air or As
fired basis (AFB) wherein the moisture effect is subtracted. The different between
the two is around 280-350 Kcal/Kg. "

However, the above aspect has been ignored by the CPRI in its report while
calculating the GCV drop in respect of receipt coal vis--vis bunkered coal for the years
2009-10, 2010-11 and 2011-12, wherein GCV of receipt coal on ADB has been compared
with GCV of bunkered coal on fired basis.
PSPCL receives coal from various coal companies such as PANEM, Monnet,
BCCL, CCL etc. which has around 4-5% surface moisture in mix of all types of coal.
Accordingly, due to presence of 4-5% surface moisture, the GCV of this coal on As
Fired basis' shall be lower than GCV on on receipt basis' determined on ADB. One
percent increase in moisture content in coal sample leads to 145 Kcal/Kg reduction
in GCV as per formula (GCV = 8555-(145xMoisture%)-(94.12x Ash%) acknowledged
by CPRI at Sr. No. (vi) of its fuel audit report (Page No. 13). As such, around 4-5%
surface moisture in the bunkered coal have resulted into reduction in the GCV on
fired basis by about 580-725 Kcal/Kg.
It has to be born in mind that above mismatch is not sue to actual reduction
but it is because of comparison by CPRI in two different conditions of coal sample
which shall obviously lead to different results. Therefore, direct comparison is not on
equitable basis and cannot be validated.
CPRI in its report at Sr. No. (i) (Page-11), has allowed a cushion of 150
Kcal/Kg in the receiving end UHV w.r.t. sending end UHV. Since, the GCV of receipt
coal have been arrived at by using the formulae by CPRI from UHV results of
sending end, as such the GCV of receipt coal on ADB further needs to be reduced
atleast by 150 Kcal/Kg.
After accounting for the drop in GCV by 150 Kcal/Kg on account of difference
in UHV of receiving end coal w.r.t. sending end coal as per Sr. No. (i) at Page-11 of
CPRI's report and drop in GCV by 150 Kcal/Kg due to drop in heating value at the
132
coal handling plant and further drop in GCV by about 653 Kcal/Kg on account of
4.5% surface moisture, the mismatch in GCV of receipt coal on ADB vis--vis GCV of
bunkered coal on fired basis works out as 953 Kcal/Kg (653 + 150+150), which is
near to the value of drop in GCV mentioned in the CPRI's report.
B) Drop in GCV under new GCV regime effective from 1.1.2012.
Coal India Limited (CIL) vide its Notification No. CIL:S&M:GM(F) :Pricing:1813
dated 31.12.2011 has migrated from UHV (Useful Heat Value) system of pricing of
coal to GCV (Gross Calorific Value) system of pricing of coal from 01.01.2012
onwards. Under the new GCV regime, the quality of receipt coal is being determined
on rake to rake basis on equilibrated basis. In view of the observation of CPRI that
the drop in GCV of receipt coal and bunkered coal on fired basis should not be more
than 150 Kcal/Kg, it is therefore imperative to determine the quality of bunkered
coal on equilibrated basis to assess the drop in GCV. This aspect has also been
covered in CPRI report at Page-11, wherein it has been recommended that GCV of
both receipt coal as well as bunkered coal can be either represented as Air Dried
basis (ADB) where the GCV is determined by drying the sample in air or as As Fired
basis (AFB) wherein the moisture effect is subtracted. However, since the quality of
coal under GCV regime is determined on equilibrated basis, so the GCV of receipt
coal and bunkered coal needs to be represented on equilibrated basis for
comparison purposes. Further, the quality of bunkered coal on fired basis also needs
to be determined, so as to assess the heat loss on account of surface moisture in the
bunkered coal.

However, the drop in GCV of receipt coal vis--vis bunkered coal, when both
are represented on equilibrated basis, in case of PSPCL thermal power stations shall
be more than 150 Kcal/Kg in view of the following:
(i) In respect of coal supplies from Coal India Ltd. (CIL), no testing of coal
rakes is done at un-loading end ever since the applicability of New Fuel
Supply agreement from Sept., 2009 and the results of the loading end
are final. It shall be appreciated that the results of loading end cannot
represent true picture of GCV of coal received at PSPCL thermal power
stations, since due to prevailing law and order problem in the mining
areas, it becomes sometimes difficult to monitor the work of sampling
and analysis round the clock. CPRI in its report at Sr. No. (i) (Page-11),
has allowed a cushion of 150 Kcal/Kg in the receiving end UHV w.r.t.
sending end UHV. It is understood that a cushion of atleast 150
Kcal/Kg will also be available under the new GCV regime on GCV
results of sending end, as the analysis results of loading end in respect
of coal supplies from CIL sources are final. As such the GCV of receipt
coal needs to be reduced by atleast 150-200 Kcal/Kg.

133
(ii) When a rake of coal is fed directly to the bunkers, bunkered coal can
be expected to have theoretically same GCV as that of the received
coal. PSPCL thermal power stations being far away from the coal
mines, a reserve stock of coal has to be maintained at plants. As per
CEA norms, thermal power stations of PSPCL are required to maintain
coal inventory sufficient for 25-30 days. CPRI in its report has
recommended to adopt First In First Out principle for receipt coal to
ensure that certain lots do not weather for too long. The CPRI in its
report (Page-12) has observed that the number of days of coal storage
in case of PSPCL thermal power stations varies from 9 to 30 days and
hence the drop in GCV should not exceed 150 Kcal/Kg. In view of
CEA's norms of having coal stocks sufficient for 25-30 days and
keeping in view the practical constraints, it is going to be difficult
sometimes to implement the CPRI's suggestion regarding following the
principle of First In First Out while feeding the coal to the units.

As such, the number of days of storage in case of PSPCL thermal
power stations shall be more and GCV drop shall accordingly be higher
than 150 Kcal/kg as recommended by CPRI due to evaporation of
combustible gases like oxygen, sulphur, methane, hydrogen etc.,
oxidation of coal and reduction of volatile matter.
Thus, GCV drop on same basis (i.e. equilibrated basis, as Ministry of
Coal has notified the testing of coal on equilibrated basis) for receipt
and bunkered coal will be more than 300 Kcal/Kg, which will be
without the effect of surface moisture. The quality of bunkered coal on
fired basis also needs to be determined, so as to assess the heat loss
on account of surface moisture in the bunkered coal.
Verbal enquiry from power stations of other utilities has indicated differences
of more than 1000 Kcal/Kg in case of GCV of bunkered coal and receipt coal
(differences upto 975 Kcal/Kg has been corroborated at Table 10 of CPRI's report).
The GCV drop for 2-3 thermal power stations have been shown to be inordinately
lower than the majority of stations. However, no analysis is available in CPRI's report
for the same. It would have been purposeful if CPRI had analysed for the
inconsistency of the data of thermal power stations, which incidentally come under
jurisdiction of single regulator i.e. MERC. However, it appears that the reductions
from the value for the year 2008 to the 2011 could be due to testing in similar
conditions. The huge variation in GCV of coal declared by coal companies and GCV
of coal received at thermal power stations has also been covered in the summery
"record note discussion" held on 21.02.2012 at CEA, New Delhi received vide CEA
letter No. CEA/Plg./OM/1/1/2012/517-550 dated 26.03.2012 (Annexure-II).
In view of the facts mentioned above, the difference in GCV of the receipt
coal and bunkered coal in case of PSPCL TPSs is not going to be less than power
stations of other utilities. The position may improve, if the quality of CIL coal is
134
analyzed at the unloading end against existing practice of determining the quality at
the loading end.

CPRI has reported the GCV and SHR of different power plants in Table 35
(Page No. 126). The equivalent UHV has been calculated with CFRI formula (UHV =
(GCV-2111)/0.6812), which is also depicted under column 3 and the equivalent
grade has been shown in Column 4.
Utility
Coal GCV
(Kcal/Kg)
UHV
(Kcal/Kg)
Grade
1 2 3 4
Sipat 3410 1907 G
Dadri 3845 2546 F
Farakka 3016 1329 G
Simhadri 2328 319 UNGRADED
Korba 3347 1814 G
Kota 3679 2302 G
Suratgarh 3681 2305 G
Vijaywada 3274 1707 G
Khaparakheda 3359 1832 G
Raichur 3749 2405 F
All the power plants depicted in the above table use CIL coal and some of the
plants even use imported coal. It is unbelievable that whether all the plants
throughout the country have procured the grade of coal (mostly G grade and even
ungraded coal) as mentioned against each plant in the above table. This needs to be
verified for assessment of correct drop of GCV in receipt and fired coal in respect of
thermal power plants of the country. PSERC is requested to get revealed the actual
facts with supporting data duly authenticated and validated with regard to drop in
GCV between receipt coal and coal on fired basis including the plants depicted in
Annexure-2 (page No. 85) of fuel audit report of CPRI.
Further, had the drop in GCV in fired coal vis--vis received coal at PSPCL
thermal stations been more adverse, then it should have resulted in to higher coal
costs per KWH in comparison to other utilities. But the facts speak otherwise. The
comparison of fuel cost per KWH after excluding freight which is variable depending
upon geographical location of power plant is tabulated below:

Name of the project
Coal cost excluding freight (Paisa per KWH)
2009-10 2010-11
2011-12
(up to Dec 2011)
GHTP Lehra Mohabbat 67.86 74.22 76.00
GGSSTP Ropar 88.62 93.49 94.00
Panipat TPS (Haryana) 139.70 153.45 181.55
NTPC Dadri II TPS - 138.66 177.42
NTPC Unchahar TPS 114.06 106.64 134.13
KOTA TPS (Rajasthan) - 131.05 125.66
Suratgarh TPS (Rajasthan) - 126.19 122.27
Anpara TPS (U.P.) - - 109.37
Obra TPS (U.P.) - - 161.52
Parichha TPS (U.P.) - - 220.19
Ukai TPS (Gujarat) - - 181.80
Gandhinagar TPS (Gujarat) - - 180.60
Wankabori TPS (Gujarat) - - 160.90
135
The above cost data has been collected through various means including
telephonic enquiry from power stations. PSERC or its consultant may verify the data
at their level.

The purpose of the carrying out the study on fuel audit of PSPCL's thermal
generating station from CPRI by PSERC is to bring efficiency for the ultimate benefit
of consumers. The above table shows that PSPCL thermal power stations are
working efficiently, as cost of coal per KWH of PSPCL thermal powers stations is the
lowest amongst the thermal power stations compared above.
II. Reduction in Transit Loss between the mine & TPS:
The transit loss of PSPCL power plants and thermal power stations of the
neighbouring states for the year 2011-12 as mentioned by CPRI in its fuel audit
report are as under:
Power plant Transit loss (%)
GGSSTP Ropar 1.23
GNDTP Bathinda 0.08
GHTP Lehra Mohabbat 1.25
Panipat 5.26
Yamunanagar 9.09
Hissar 6.96
Torrent Gujarat 1.41
GSPGCL 1.50

136

Transit loss for stations located closer to sending end can be expected to be
lower than that of farther stations. From the above data, it would be appreciated
that thermal power stations of Punjab, even though located at more distance from
the coalfields in comparison to the stations of Haryana and Gujarat, have a lower
transit loss.
Accrual of transit loss of more than 5% in Haryana power stations shows that
transit loss is uncontrollable. CERC norm of 0.8% transit loss as recommended by
the consultant cannot be made applicable for PSPCL power plants, as PSPCL power
plants are at the farthest end from coal mines as compared to Central Government
generating stations. Therefore the presently allowed limit of transit loss of 2% is
reasonable and acceptable.
However, if recommendation of CPRI regarding linking of transit loss with the
coal cost is considered, then it is apprehended that the liaison agent may quote
higher rates to cover his risks and the whole exercise may be counterproductive.
III. Reduction in demurrage through improved unloading infrastructure:
Due to long leads of PSPCL thermal power stations from the coal mines, the
placement of rakes at the thermal power stations varies significantly, as on certain
days no rake is received while on other days even upto 8-10 rakes are received at
GGSSTP Ropar. This results into becoming the system idle at sometimes, while it is
overloaded at other times, due to placement of rakes in bunches by the Railways,
thus resulting into over detention of wagons and levy of heavy demurrage charges.
The receipt of lumpy coal alongwith oversized coal, especially coal supplies from CIL
sources, also results into delay in unloading of the rakes and accrual of demurrage
charges.
Inspite of regular follow-ups with the quarters concerned, the position has not
improved and the thermal power stations are receiving coal rakes in bunches
alongwith lumpy coal and stones. However, as per suggestion contained in the
report with regards to reduction in demurrage, efforts are being made to repair
existing side arm chargers. The proposal for installation of new beetle chargers or
side arm chargers, where these do not exist, shall be studied and implemented if
found techno economically feasible.
IV. Reduction in quantities of stones received through more vigilance at
the loading end.
The matter is regularly taken up with the CIL to stop dispatching the coal
having stones mixed with it.
V. Review of contract with washeries regarding the quantity and
quality of coal inputs and outputs.
As per Ministry of Environment & Forest gazette notification dated 19.09.1997
(Annexure-III), the thermal power stations located beyond 1000 Kms from the pit
head and thermal power stations located in urban area are required to use
beneficiated coal with a ash content not exceeding 34%. The thermal power stations
of PSPCL fall in the ambit of this notification being located beyond 1000 Kms from
137
the pit head and are bound to use beneficiated coal with ash content less than 34%.
Accordingly, a contract agreement dated 14.08.2002 was signed by PSEB (now
PSPCL) with M/s Monnet Daniels after following competitive bidding route for
washing of CCL raw coal.
CPRI in its report has observed that the washed coal supplies from M/s
Monnet Daniels are presently not economical and the washed coal is expensive by
almost 22-28% as compared to the raw coal. CPRI has further recommended that a
validation of the process must be undertaken by a neutral third party agency at the
earliest. CPRI at Page-17 of its report has indicated the per MT freight in respect of
coal supplies from M/s Monnet Daniels to GGSSTP Ropar and GHTP Lehra Mohabbat
as ` 1820.20 and ` 1884.10 respectively. The figures of railway freight in respect of
coal supplies from M/s Monnet are not correct as indicated in the CPRI report. It
appears that the exaggerated figures of railway freight in respect of M/s Monnet
have adversely affected the economics of washed coal vis--vis raw coal. GGSSTP
Ropar has confirmed that the figure of railway freight from M/s Monnet needs to
taken as ` 1456 per MT in the table given at Page-17 of the report instead of `
1820.20 per MT and cost economics of getting CCL washed coal needs to be worked
out accordingly .
An effort has been made to work out the economics of getting washed coal
vis--vis raw coal after accounting for commercial benefits on various accounts in
respect of washed coal supplies from M/s Monnet vis--vis raw coal supplies from
CCL as per FSA dated 08.09.2009. Presently under the new GCV regime, M/s Monnet
is lifting CCL raw coal having GCV declared bands as 4300-4600 Kcal/Kg (KDH mine)
and 4600-4900 Kcal/Kg (Ashoka mine) on PSPCL's behalf. M/s Monnet is witnessing
the work of joint sampling and analysis on PSPCL's behalf with CCL. During the
analysis of raw coal supplies for the month of April 2012 from Ashoka mine, the GCV
in most of the cases (about 87%) has been analysed less than 4600- Kcal/Kg i.e. the
payment of raw coal to CCL are to be made in the GCV band 4300-4600 Kcal/Kg.
Accordingly, while working out the economics, the cost of CCL raw coal having GCV
band 4300-4600 Kcal/Kg has been considered and GCV of washed coal and raw coal
of CCL has been compared in terms of `/Million-kcal after determining the GCV of
CCL raw and Monnet washed coal based upon ash percentage and equilibrated
moisture percentage through empirical formula i.e. GCV = 85.55(100-(1.1 A + M)-
(60xM). The washing of coal has many tangible and intangible benefits and the cost
economics of M/s Monnet washed coal works out as under:
Cost economics of getting CCL raw coal washed from M/s Monnet Daniels
%
Ash
Type
of coal
Yield
Reductio
n Factor
%Yield
Coal Cost
after
accounting
for yield**
(Rs/MT)
Washing
Charges
after
accounting
for yield
(Rs/MT)
Railway
Freight
(Rs/MT)
**Per
MT
saving
on
various
accounts
due to
washed
coal
(Rs/MT)
Landed
cost after
accounting
Column [5]
(Rs/MT)
GCV
(Kcal/Kg)
Total cost
Rs/Million
kcal
1 2 3 4 5 6
34.5 Raw 0 100 1167.55 0.00 1456 0 2623.55 4508 581.96
138
28.5 Washed 3.33 80.0 1459.07 174.96 1456 278.57 2811.46 5073 554.22

** Worksheet depicting benefits of using washed coal from M/s Monnet vis--vis raw coal,
is enclosed as Annexure-IV.

1. Yield reduction factor indicates loss of yield for every 1% reduction in ash.
2. %age yield after accounting for yield reduction factor.
3. Coal rate including STC charges upto 10-20 Km. i.e. Rs. 77/MT
4. Washing charges are assumed as Rs. 140/MT of raw coal, however the exact
charges shall be worked out after fixation of base date with M/s Monnet.
5. GCV = 85.555(100-(1.1xAsh+Moisture))-60xMoisture, where moisture has been
assumed as 5.5%.

The perusal of the table shown above indicates that the cost in `/Million-kcal
of washed coal corresponding to 28.5% ash works out as ` 554.22 against ` 581.96
of CCL raw coal and as such, the washed coal is cheaper by ` 27.74 per Million-kcal
vis--vis CCL raw coal.
In addition to the above, the following additional benefits shall also accrue,
when washed coal is used at the thermal power plants:
1. Reduced ash generation, requires less ash handling as well as reduces ash
dumping area, contributing to less Capital & Operational Costs.

2. Use of washed coal having uniform size and no foreign materials, improves
performance of Coal Handling Plant by avoiding frequent jamming and thus
less demurrage charged by the railways due to less detention time of rake.

3. Coal Mills of powerhouse perform better due to sized coal and reduction of
ash content in washed coal. Also downtime of coal mills reduces as ingress of
stones reduces.

4. Railway's handling capacity gets increased.

5. Smoke generation is less and Air Pollution gets reduced.

6. Carbon Dioxide emissions get reduced.

7. The Boiler efficiency enhances and productivity increases.

8. With beneficiated coal, Furnace wall Slaging / Leakage of Boiler Tubes
/Clinker formation and abnormal erosion gets reduced to a large extent.

9. Use of beneficiated coal contributes to improve power plant performance,
plant utilization factor and capacity utilization.
139
Further, regarding observations of CPRI for determining the GCV of washed
coal for comparison purposes, it is submitted that as per the provisions contained in
the contract agreement dated 14.8.02 between PSEB (now PSPCL) and M/s Monnet,
the washery operator is to supply washed coal after reducing the ash %age in
washed coal w.r.t raw coal as per provisions contained in the contract agreement
and there is no provision for comparing the GCV of washed coal with the GCV of raw
coal as has been emphasized by CPRI in its report.
VI. Achievable SHR
Comments of CPRI on Station Heat Rate in the report pertaining to fuel audit
are misplaced. The SHR is a measure of conversion of heat energy into electric
energy. It is not dependent on how the coal is received, stacked and handled.
Therefore, comments of CPRI on SHR in the report of fuel audit are not pertinent.

CPRI has pointed out that GGSSTP units are capable of achieving 2500
Kcal/KWH, provided equipment wise Renovation of Turbine Modules boiler heaters
heat exchangers feed pumps cartridges, controls & instrumentation etc. is
implemented through CAPEX (Capital Expenditure). In this regard, M/S CPRI have
neither detailed nor quantified the CAPEX for the above. The replacement of these
high value equipment is neither having workability in the existing scenario nor
having guarantee of assured results. In addition, it also requires longer outages of
the units, which PSPCL can ill afford. However, best efforts are being made for
improvement in plant performance by implementing various need based R&M
schemes.
M/s CPRI have earlier carried out SHR study of GGSSTP units, in which test
heat rate was measured as 2259 Kcal/Kwh and annual HR was calculated as 2621
Kcal/Kwh. As per CPRI, by implementing the suggested Short Term, medium Term &
long term measures, the achievable SHR could be 2600, 2564 & 2529 Kcal/Kwh
respectively. However, need based R&M is being carried out for improvement in heat
rate as per techno economical feasibility study of the scheme. CPRI in its report of
SHR did not project achievable SHR of GGSSTP Ropar to be 2500 Kcal/Kwh, even
after CAPEX. The recommendations given now are contradictory to the earlier ones.

The comments against various recommendations made in fuel audit report are as
tabulated below:
Sr.
No.
Recommendation Comment
1 For the process of sampling, recording of
quantity, determination of fuel quality
(GCV) a committee may be formed
composed of senior level officers at the
level of SE from Operations,
Maintenance, Efficiency and Fuel along
with Chief Chemists who will supervise,
perform random quality checks and
GHTP: An eight member
committee comprising of six No.
ASEs/Sr. Xens, Chief Chemist and
Dy. Chief Chemist headed by
S.E./Operation has already been
constituted and functioning at
GHTP to supervise quality of rakes
being received at GHTP randomly.
140
monitor the entire process of receipt and
reporting of coal quality and quantity
received and consumed in the TPS.

GNDTP: A committee comprising
of 7 No. officers (3 No.
ASEs/Sr.Xens and 4 No. officers
from Chemical Deptt.) has already
been formed for performing
random quality checks of received
& bunkered coal and monitor the
process of sampling & analysis at
GNDTP.
GGSSTP: A panel of 7 no. ASEs,
Sr. Xens, Chief/Dy. Chief/Sr.
Chemist has been framed for
performing random quality checks
of received & bunkered coal and
monitor the process of sampling &
analysis.
The entire process of receipt and
reporting of coal quantity received
and consumed is being looked
after by an independent fuel
management cell.
2 The data file composed of gross weight,
wagon Nos. and tare weight may be
made portable to the Fuel Section and
Accounts for archiving of the online data.

There are two No. in motion weigh
bridges installed at GHTP & GNDTP
and one No. at GGSSTP. The
software in respect of one No.
weighbridge at GHTP & GNDTP
has been upgraded to fetch all
data recorded online to other
offices at each of the power plants.
The software of second weigh
bridge at GHTP & GNDTP is being
upgraded shortly, and then all data
available on the computers will be
provided in soft copy to fuel and
accounts cells. However online
transfer of data from weighbridges
to fuel section and accounts wing
is being considered.
141
3. It is recommended that in GNDTP also,
the wagon dip level measurement may
be taken as the primary measurement
for recording receipt quantity.
At GNDTP, presently LDO is being
received through road mode
through truck tankers and dip is
being taken of the truck tanker as
well as the storage tanks to ensure
correct receipt. In case of rail
rakes the dip of storage tanks is
taken before and after unloading
to give the measurement of oil.
Further, RADAR based system for
oil dip measurement in the storage
tanks has already been installed.
The cabling for the same is in
progress and the system is likely to
be commissioned shortly during
the ongoing activities for
commissioning of Unit #3. This
shall give quite accurate
measurement of oil received and
the oil stock.
However, the dip level of individual
wagons in case of rail borne
supplies shall also be ensured in
future at GNDTP.
4. The sampling of both receipt coal as well
as bunkered coal at any time of the day
must be witnessed by an officer level
person since the sample determines the
basis for determining station heat rate
and indirectly relates the quantity of
consumption. Periodic surprise checks by
committee members are essential. The
random table details of which wagon to
take the sample must only be told to the
personnel at the last minute by the
Committee members.
Sampling of rakes received at
PSPCL plants is being done
randomly in presence of officers of
the committee. It is not possible to
depute one officer always for
checking the sampling of bunkered
coal as the same is collected after
every twenty minutes at GHTP and
every 2 hours at GNDTP & GGSSTP
during the running of coal
conveyer belts at each unit round
the clock. However, the sampling
of the bunkered coal is being done
in the presence of Senior Chemist.
Instructions regarding not to
divulge the random table details
before hand are already being
complied with.
5. Receipt coal sampling must be only
through automatic samplers under the
supervision of chemists. Chemists must
witness the taking of the samples.
There is no automatic sampler
available at PSPCL plants. Further
there is no provision of sampling
PANEM coal beyond 0.5mt depth in
the wagons selected for sampling.
142
Automatic samples can go deep inside
the wagon whereas manual sampling
has a tendency to sample only on the
undersurface of the heap.
Use of automatic samplers will be
studied and procured, if found
feasible.
6. During reduction process of coal samples
coal density (by standard pot's weight
and volume method) should be
measured so that general record of coal
density for particular coal colliery is
available.
The process will be studied for
subsequent implementation after
consultation with CPRI.
7. Coal stock verification and reconciliation
may be done once a month.
Physical verification and
reconciliation of stock is being
done by Technical audit wing of
PSPCL at end of each quarter.
Monthly coal consumption is
revised for each month of the
quarter based on coal stock found
short / excess (as the case may
be) after receipt of final coal stock
report by technical audit wing of
PSPCL. As such monthly coal stock
verification is not required.
8. The coal stock verification must be in the
presence of the committee of senior
level officers
The coal stock verification is
already being done by Sr.
Xen/Technical audit, PSPCL, Patiala
who is assisted by Sr. Xen /CHP
(Op) and Sr. Xen / Civil.
9. Belt weighers may be installed for all
conveyors feeding to all units before
entrance to the bunkers so that unit wise
coal consumption can be arrived at. The
unit wise coal consumption through belt
weighers is present only in GHTP, Lehra
Mohabbat. The same may be installed in
all units of GGSSTP, Ropar and in all
units of GNDTP, Bathinda. Belt weighers
have emerged as a reliable and cost
effective method of coal measurement.
The signals from the belt weighers give
coal flow in t/h and total flow and are of
the re-setting type. The coal flow from
the coal yard to the units (total
composite flow) can be measured
GHTP: Belt weighers have
already been installed at GHTP and
functional. Microprocessor based
interfaces for belt weighers at
Stage-II has been provided and
the scheme is under study for
stage-I units.
GNDTP: Microprocessor based
Belt Weighers are already installed
at GNDTP. Instructions have been
imparted to the concerned cell
(CHP) for taking belt weigher
readings based on the trolley
movement in order to calculate the
coal fed to the individual units.
Gravimetric feeders have already
being installed at Unit-3 & 4 after
R&M which will give unit wise coal
143
through these conveyors. In addition to
the total flow to the units from the belt
weighers, the unit wise consumption is
required to be monitored to provide the
unit wise performance. Microprocessor
based interfaces for belt weighers needs
to be installed or multiple time totalizers.
consumption.
GGSSTP: Belt Weighers are
already installed at GGSSTP, which
give erratic readings. Gravimetric
feeders for the measurement of
coal to each mill, are being
installed in 1 unit and after their
successful performance; the same
shall be installed in other units.
At GGSSTP, in CHP only 2 streams
are provided which feed all the 3
stages of units, multiple time
totalizers may give frequent
interruptions, which the existing
system can ill afford.
10. The reporting of the reconciled
consumption of coal must be on a
monthly basis. Once the monthly stock
and consumption is reconciled and
arrived at it must be final and there must
be no further reconciliation on a
quarterly, bi-annually or yearly basis.
Coal is reconciled and figures are
freezed on monthly basis after
receipt of final report by technical
audit wing of PSPCL at end of each
quarter. No further changes are
done in already freezed values.
11. The reporting of the reconciled
consumption of fuel oil must be on a
monthly basis.
Oil is reconciled and figures are
freezed on monthly basis after
receipt of final report by technical
audit wing of PSPCL at end of each
quarter. No further changes are
done in already freezed values.
13. The drop in GCV between the receipt
coal and bunkered coal may be brought
down to within 150 kcal/kg.
Detailed reply in this regard has
been given at Sr. No. (I) above.
14. First-in-first out principle must be
adopted for receipt coals to ensure that
certain lots do not weather for too long.
First in first out principal for receipt
coal is already being implemented
as far as possible.
15. The joint sampling provision in the FSA
with CIL and other collieries must be
strictly implemented.
Each and every rake received from
CIL is being jointly tested by M/s
Coal Inspection Service on behalf
of PSPCL. For other collieries joint
sampling is already being done
strictly as per various provisions of
the FSAs with them at plant end.
16. Introduction of additional fogging GHTP: Utmost care is being taken
to avoid any hot spots in coal
144
systems at various locations in the coal
yard as well as at the junction towers to
avoid spontaneous fires in coal stacks.
stock. However, concerned officers
of CHP have been instructed to
study the locations where
additional fogging system is
required to be introduced.
GNDTP: A portable fogging
system has already been procured
for spray in the CHP & coal pile
area.
GGSSTP: Utmost care is being
taken to avoid any hot spots in
coal stock. Also, a portable water
spraying system is being procured
for spray in the CHP & coal pile
area. However, matter will be
discussed for any new & innovative
equipments available, if any.
17. Use coal compactors for compaction of
the coal heaps to avoid spontaneous
combustion and also to eliminate
seepage of water and loss of heating
value of the coal.
Compaction is being done with the
Bull-Dozers, however possibility of
procurement of coal compactor will
be studied.
18. Periodic surprise checks to witness the
GCV determination for both receipt coal
as well as bunkered coal in a bomb
calorimeter by committee members is
essential.
Reply as per point No.I of this
table
19. Random samples of both receipt coal as
well as bunkered coal or a certain
percentage of samples (5 to 10 %) as
well as third party testing samples may
be sent to independent, impartial truly
third partly central laboratories whose
result must be final, such as the
following:
Central Institute of Mining & Fuel
Research (CIMFR) (Formerly CFRI),
Nagpur
In case of receipt coal, samples
can be tested from independent
labs only in case of challenge from
either party as per FSA. However,
committees have been constituted
at plant level for checking the
quality of rakes randomly. Most of
the laboratories suggested by CPRI
have already been covered for
testing of referee sample with M/s
PANEM.
As far as bunkered coal is
concerned, GCV is being tested by
automatic bomb calorimeter of M/s
Parr USA which is amongst the
most accurate calorimeters
available in the market so there is
145
Dhanbad
CPRI, Bangalore
no need to check the GCV in
independent laboratories.
20 It is recommended to go for additional
set of sample primary and secondary
crushing equipment including
pulverizers.
The procurement of additional set
of sample crushers and grinders is
already under process at GHTP &
GNDTP. GGSSTP is already having
2 set of such equipments and both
are in working condition, so there
is no need of going for any
additional sets.
21. Presently, the three stations are having
only bomb calorimeter. Usually, in many
other utilities there are separate bomb
calorimeters for Stage 1 & Stage 2. One
additional automatic multi-sample bomb
calorimeter is recommended for each
station along with room air conditioners
for maintaining the temperature control
of the cooling water.
One number additional automatic
bomb calorimeter is being planned
for procurement for each thermal
power station.

22. The receipt coal GCV which is the basis
for payments must also be a part of
returns filed to Regulatory Commission.
The computation of SHR can still be on
the basis of bunkered coal GCV but this
value must not deviate beyond 150
kcal/kg from the receipt coal GCV value.
Reply as per Sr. No. (I) above.
23. The computation of SHR must be on
daily basis and the monthly value must
be based on daily average. The annual
value must be based on monthly
average. The reporting period for SHR
must be monthly.

As Calorific value and specific coal
consumptions are calculated on
daily basis so SHR w.r.t. coal
energy is already available on daily
basis at GHTP & GNDTP. Oil
consumption is calculated and
finalized at end of each month
with dip stick, so SHR is calculated
and reported on monthly basis.
At GGSSTP, the same is not
possible, as coal consumption is
taken on monthly basis. Unit wise
coal consumption data is not
available, however Gravimetric
feeders for measurement of coal to
each mill are being installed in 1
unit and after their successful
146
performance; the same shall be
installed in other units.
24. An independent third party validation of
the washery energetics to map the yield
as a function of the input raw coal
quality and washed coal quality is
required.
An exercise has been carried out
at Sr. No. (V) above, to work out
the cost economics of M/s Monnet
washed coal vis--vis CCL raw
coal. Since, M/s Monnet washed
coal is economical, so independent
third party validation of the
washery energetic is not required
at this stage.
25. The coal cost (landed price of coal at the
TPS) can be evaluated in three formats:
Rs. /T = (coal cost + freight)/receipt
weight
Rs./kWh = (coal cost +
freight)/energy generated
Rs./GCal = (coal cost +
freight)/(receipt weight x GCV of
receipt coal) converted in GCal to
have it in comparable number values.
The coal costs can be evaluated in
all the three formats.
26. Considering the above facts it is
recommended to reduce TL to CERC
norms of 0.8 % for CIL & Washed coal.
In the case of washed coal it may be
ensured that washed coal is brought to
equilibrium with respect to moisture
Detailed comments of PSPCL in
this regard have been given at Sr.
No. (II) above. CERC norm of
0.8% transit loss cannot be made
applicable at PSPCL power plants
as PSPCL power plants are at the
farthest end from coal mines as
compared to Central Government
generating stations. Therefore the
presently allowed limit of transit
loss of 2% is reasonable and
acceptable.
27. It was noticed that in all the three TPS
wagon positioning equipment (inhaul-
outhaul beetle chargers or side arm
chargers) are either not present or not in
working condition and the shunter is
used for the same. Either these may be
repaired or side arm chargers may be
GHTP: Efforts are being made to
repair side arm chargers installed
at Stage-I. No beetle charger or
side arm charger exist at wagon
tipplers of GHTP Stage-II units.
However, procurement of the
same under renovation
programme will be studied and
implemented if found techno
economically feasible.
147
GNDTP: There is no space for
side arm charger. Proposal
regarding beetel chargers shall be
studied and shall be implemented
if found technically feasible.
GGSSTP: There is no space for
side arm chargers, however Beetel
chargers are in working condition,
which are quite fault prone and
also increases the unloading
period.
28. Earlier wagon tippler systems were
designed for 500 & 1000 t/h to empty a
rake in 3 h. Present day systems are
available in 1600 t/h for faster disposal.
The detailed study of wagon tippling
systems and coal conveying may be
studied for removal of existing
bottlenecks and for upgradation
wherever it is critical.
To upgrade the existing system,
complete CHP has to be renovated
after dismantling the same, which
is not possible as the units have to
be stopped for quite a long period.
The only possible solution for
faster unloading lies in regulated
supply (without bunching) from
railways, for the supply of coal free
from boulders and stones.
29. Detailed study and upgradation of coal
conveying system especially at GNDTP
which is using vibratory feeders.
The OEM of the conveyor system
at GNDTP i.e. M/S Elecon was
asked to study the existing system
and suggest necessary up
gradation to achieve the designed
capacity of CHP. Firm has
submitted its report and the same
is being studied for
implementation.
30. Rail tracking system through GPS or
alternative technologies
Related to Railways. However, the
proposal will be studied.
31. Grab cranes for removal of stones from
the wagon tippler area is present in
Ropar. The same may be installed in
Bhatinda and Lehra Mohabbat
GHTP: Grabber and loader
machine already exist and
functional at GHTP. One more
grabber and loader machine is
being procured.
GNDTP; Possibility for installation
of Grab crane is being explored
keeping in view the space
constraint at Wagon Tippler
Hopper.
32. Rotary pneumatic or electrical hammers
may be used for crushing coal lumps at
GHTP: Since grabber and loader
machine is used to pick coal lumps
148
the wagon tippler in place of manual
hammering.
away from coal grating efficiently
where these are manually crushed,
so any rotary pneumatic or
electrical hammers are not
required.
GNDTP: Possibility for installation
of Pneumatic /electric hammers is
being explored keeping in view the
space constraint at Wagon Tippler
Hopper.
GGSSTP: Possibility for installation
of Pneumatic/electric hammers will
be explored.
33. Since loading is in the scope of Monnet,
POL may be brought into the scope of
Monnet.
The contract agreement dated
14.08.2002 was signed between
PSEB (now PSPCL) and M/s
Monnet Daniels after following
competitive bidding route and as
per the provision in the contract
agreement, POL charges are to
borne in the ratio 50:50 by PSPCL
and M/s Monnet. The provisions
contained in the contract
agreement are binding for both the
parties.
34. Frequent visits and inspections at the
colliery loading end is essential to
minimize the receipt of stones
Matter is regularly taken up with
the CIL to stop dispatching the
coal having stones mixed with it.
Also loading of good quality coal at
loading end is being supervised by
our coal liaison agent M/s KCT &
Bros.
35. Random sampling of rakes from
washeries and captive mines in the
presence of CIL officials may be
undertaken to sort out the issue with CIL
and convince them that stones are from
CIL.
As per FSA signed with various CIL
subsidiaries, stones are to be
distributed proportionate to the
supplies from various sources of
coal. However, efforts will be made
in this regard to sort out the issue.
36. The joint witness of weighment and
quality determination at the sending end
must be fully utilized for ensuring that
Quantity of each rake is strictly
supervised by M/s KCT, whereas
quality of each rake is inspected by
M/s Coal inspection service on
behalf of PSPCL. Witnessing by
PSPCL is not practically possible.
149
37. One of the major factors involved in the
payment to Panem is the testing of coal
samples at the TPS. Hence, extra care
must be exercised in sampling and
measurement of receipt coal quality as it
Each and every rake of PANEM is
already being tested. Further, a
committee has already been
formed as mentioned at Sr. No. 1
above for this purpose.
38. Since washed coal loading is entirely in
the control of Monnet, the POL must be
in the account of the washery. This
clause is recommended to be reviewed
and reverted to include the POL into the
scope of the washery.
Same as at Sr. No. 33 above.
39. GCV of both receipt and washed coal is
to be determined, documented and
reported for each and every rake of coal
input and output of washery.
As brought out in last Para of Sr.
No. (V) above, the washery
operator is to supply washed coal
after reducing the ash %age in
washed coal w.r.t raw coal as per
provisions contained in the
contract agreement and there is
no provision for comparing the
GCV of washed coal with the GCV
of raw coal as has been
emphasized by CPRI in its report.
40. Keeping in mind the that the density
differences between coal, mineral matter
and ash are low, the process yield for
various input coals must be got validated
by an independent third party agency
such as CPRI or CFRI, etc..
41. The process energy efficiency map along
with economics for various input coal
GCVs and washed coal GCVs must be
got validated by an independent third
party agency such as CPRI or CFRI, etc..
42. The telemetering system for on-line
information of the in-motion weighbridge
readings of receipt coal received and
beneficiated coal loaded at PSPCL TPS is
essential and must be implemented at
the earliest to provide authentic tamper
proof data on transit loss and total
weighment of both receipt coal and
As per clause 6.6.5 of the contract
agreement, after implementation
of telemetering, the weighment
and quality of washed coal of
loading end shall become final.
Since, M/s Monnet has not yet
commissioned the telemetering, so
the quality and weighment of
washed coal at the plant end is
150
washed coal dispatched at the Washery. final. As per PSPCL's view point,
after telemetering is
commissioned, the provisions of
becoming loading end results for
quality and quantity of washed
coal as final, shall be detrimental
to PSPCL.
It is further submitted that during
discussions with M/s Monnet it has
emerged that telemetering could
not be commissioned by them due
to jamming of communication
signals by the Govt. agencies, as
N.K. area is prone to Maoist
/Naxalite.
43. POL at the loading site of washed coal
may be brought fully into the scope of
Monnet which is presently shared 50:50
by Monnet and PSPCL.
44. The coal loaded into the rakes must
have equilibrium moisture. This is to
ensure that TL does not occur due to
non-equilibrium moisture in coal
evaporating and coal coming back to
equilibrium moisture. Moisture related TL
must be in the scope of the washery.
Coal lost due to increase in
moisture is being booked to the
firm as per contract signed
between M/s Monnet.

45. The cost benefits of the washery process
which is higher by almost 22-28 % to
coal from other sources may be
reviewed. Apart from the clauses on
quantity of washed coal delivered, the
quality process may be reviewed. The
coal lifted by the washery must be
specified in terms of GCV, ash and
moisture. The sampling frequency of the
coal must be on the basis of similar to
rake sampling, i.e., around 350 kg per
4000-4500 tonnes, i.e., 80 ppm (parts
per million).
Regarding cost benefits of the
washery, the reply is the same as
at Sr. No. 24 above.
Since, the work of joint sampling
and analysis of CCL raw coal is
being carried out jointly by M/s
Monnet on PSPCL's behalf with
CCL, so M/s Monnet will be asked
to provide GCV, ash content and
moisture in raw coal, as
recommended in the report.
In case of road mode of coal
supplies lifted by Monnet from
CCL, gross sample of the day is
prepared by taking appx. 30 Kg of
sample from every eighth truck
after selecting one truck randomly
from first eight trucks as per
151
clause 1.3 of the FSA with CCL.
46. The transit loss may be fully included in
the scope of the liaisoning agent. The
payments to the Liaison agent must be
linked with the actual coal cost (landed
price: coal +freight), (i.e., Rs. 30/t x coal
weight for the rake) for every 1 % TL.
If the linking of transit loss with
the coal cost is considered, then it
is apprehended that liaison agent
may quote higher rates to cover
his risk and the whole exercise
may be counter productive.

The above recommendations of the committee are submitted, please.

Chief Engineer / O&M Chief Engineer / O&M
GHTP, Lehra Mohabbat GGSSTP, Ropar

Chief Engineer / O&M OSD/Coal Management
GNDTP Bathinda PSPCL, Patiala

152
Annexure-IV
Description Savings on account of washed coal
supplies from M/s Monnet
Penalty over loading charges
As per FSA with CCL, the penal freight for over-loading
charged by the railways is to purchaser's account. Whereas
in case of contract agreement with M/s Monnet, the POL
charges are to be shared by PSPCL and M/s Monnet in the
ratio 50:50. Accordingly, a cushion on account of 50% POL
charges have been taken while working out the cost
economics.
` 13.72 / MT
Sizing charges as per CIL notification

Raw coal size (mm) Charges(`/MT)
(-)250 39
(-)100 61

CCL is supplying raw coal of size (-)250 mm to M/s Monnet.
M/s Monnet is supplying (-)100 mm washed coal.
` 61 - ` 39 = ` 22 / MT
Transit Loss

The transit loss in respect of coal supplies from M/s Monnet
is nil, since the payment of plant end is final (as the
telemetering has not been commissioned as yet).

PSERC has allowed 2% transit loss in
respect of coal supplies from CIL sources.
The landed cost of washed coal works out
as ` 3090.03 / MT. Accordingly, 2%
saving in transit loss works out as ` 61.80
/ MT.
Sampling & Analysis services

PSPCL is paying ` 0.30 / MT for the work of sampling and
analysis to M/s Coal Inspection Services Ltd. in respect of
coal supplies from CIL sources. Since, the work of Joint
Sampling and Analysis in case of CCL raw coal is being
carried out on PSPCL's behalf with CCL, so there is saving
of ` 0.30 / MT.
` 0.30 / MT
Stones

Coal supplies from M/s Monnet are free from stones. CPRI
in its report has observed that the %age of stone in case of
GGSSTP Ropar was 1.2 - 1.8%. CIL is reimbursing basic
cost of coal only in respect of stones above 250 mm.
Assuming average per MT landed cost of coal in case of
GGSSTP Ropar as ` 3000 and average basic cost of coal
per MT as ` 900, there shall be a saving of about 1.5% of
` 2100 (3000-900) in respect of washed coal supplies from
M/s Monnet since the same are free from stones of all
sizes.
` 31.50 / MT
Total Moisture

Based upon clause 9.2 of the FSA with CCL, the average
surface moisture in raw coal is permitted upto 7.33%. In
case of washed coal supplies, M/s Monnet is allowed 2.5%
surface moisture over and above the inherent moisture in
raw coal i.e. the limit of surface moisture in case of washed
coal supplies from M/s Monnet is 2.5% against 7.33% in
case of raw coal supplies from CCL. Accordingly, a cushion
of 4.83% (7.33-2.5) less surface moisture in case of
washed coal supplies from M/s Monnet has been accounted
for while calculating the cost economics.
4.83% of landed cost of washed coal i.e.
` 149.25 / MT.
TOTAL SAVINGS ` 278.57 / MT

153

Annex 4
(CPRI replies to comments by
PSPCL)

154

ENERGY EFFICIENCY AND RENEWABLE ENERGY DIVISION
(Tel./FAX : +91 80 23604682; ered@cpri.in; msb@cpri.in)

Ref.: CPRI/ERED/PSERC/29/2011-12 Date: 17.07.2012

Fax No.: 01752-215897
Director (Generation),
Punjab State Power Corporation Ltd.,
Patiala.

Dear Sir,

Sub.: Fuel Audit study at PSPCL Plants
Ref.: Your letter No. 310/SET/DG-153 dt. 23.04.2012

Please find enclosed the replies to your above mentioned letter vide ref. 1 above
comments on CPRI Fuel audit study.

Thanking You,

Yours faithfully,

[M.S.Bhatt]
Additional Director (ERED)

Encl.: As above

CC to: Secretary, PSERC, Chandigarh. Fax: 0172 2664758 / 2645163 / 2602435

155

FUEL STUDY REPORT OF PSPCL TPS FOR PSERC,
CHANDIGARH

REPLIES TO POINTS RAISED BY PSPCL IN THEIR MEMO
NO.2426/CL/TR/104-VOL.19 DT. 08.06.2012

1. It is agreed that the data of receipt coal GCV was not supplied by PSPCL as the
same was not being measured at the time of energy audit. However, the data on
bunkered coal was measured and supplied by PSPCL.
2. It is agreed that GCV of receipt coal is calculated by a formula. For the points
raised by PSPCL regarding the conversion of UHV into GCV, the primary document is
the EXTRAORDINARY GAZETTE OF GOVT. OF INDIA (1986) which is undisputable.
UHV estimation formula is based on the formula given in the EXTRAORDINARY
GAZETTE OF GOVT. OF INDIA which cannot be disputed. The relationship between
UHV and GCV is given in the EXTRAORDINARY GAZETTE (1986) itself. Further the
Coal Controllers report of 2011 indicates the conversion of UHV to GCV as the
basis for going for GCV based pricing. FSA has provision for measurement and
accounting for Total moisture in both UHV & present GCV regimes.

1. Drop in GCV: The main contention of PSPCL is that the receipt coal GCV is on
the basis of air dried basis (ADB) while the bunkered coal is on the basis of As
fired basis (AFB). The station has stated that there is 4-5 % surface moisture in
receipt coal which corresponds with the drop in GCV when considered on AFB.
However, while computing UHV which is then converted into GCV, the 4-5 %
moisture is already considered via Total moisture provision in the FSA. While it is
true that if moisture content of coal is increased then its GCV drops down, it is
the responsibility of the Station Coal management Cell or Fuel management Cell
to ensure that the GCV of the coal does not fall down. The measurements at
both measurement points at the station (receipt and bunkered) must
be on common basis, i.e., equilibrated moisture conditions, accounting
for total moisture. There cannot be two different methods of
calculations for thermal energy that is paid for and thermal energy that
is used. It is recommended to go for uniform practice for both receipt and
bunkered coal and minimize the difference due to actual drop in heat value to
within 150 kcal/kg.

2. Drop in GCV in new GCV regime: GCV of both receipt coal and bunkered coal
needs to be determined and reported on a common basis. It could be
represented on equilibrated basis as mentioned by PSPCL in view of the new GCV
based fuel supply regime and total moisture effect may be added as per new
FSA. In that case total corrected GCV of coal at the receipt point of the
156
TPS must be reported to the Regulatory Commission for Accounting
Purpose since this GCV is being paid for. In case the reported GCV for
commercial accounting purposes is on the basis of AFB, in that case the GCV of
receipt must also be determined on As Received Basis and the provisions of FSA
must be utilized to reconcile the differences with CIL. The payment is being made
for As Received GCV of coal. If the GCV of coal paid for is different from
that actually obtained, in that case the matter must be taken up with
CIL. It is mentioned that no testing of coal rakes is done at unloading end.
Testing of coal rakes at TPS entrance is essential for ascertaining the
GCV of received coal at the receiving end for the purpose of
reconciliation. It is also mentioned that measurements at loading end does not
represent the true picture due to law and order problems. There is sufficient
provision in FSA for joint sampling which must be enforced rigorously.
Regarding the drop in the TPS it is established beyond doubt that the drop due
to deterioration, increase in surface moisture, etc., in a well maintained system
cannot exceed 60 kcal/kg in a month and not 300 kcal/kg as mentioned by
PSPCL. In case the drop is more, then the Coal Plant infrastructure needs to be
improved to prevent deterioration of coal in the coal yard.

3. Steps required by PSPCL to ensure that the loss of heating value is
within 150 kcal/kg are: Enforcing joint sampling more rigorously, ensuring
that coal paid for is actually of the heating value supplied, development of a
standard process of GCV reporting and improvement in coal yard infrastructure.

4. Already reduced cost of generation: The PSPCL has brought out that the
generation cost is the lowest for its stations as compared to other stations. The
overall impact of GCV on the cost of generation is around 10-18 p/kWh. The low
cost of generation of PSPCL stations is also on account of the good coal linkages
and coal from captive mines. Hence a direct relation cannot be established
between the PSPCL and other stations. Drop in GCV at the station cannot be
justified on the ground that the impact is 10-18 p/kWh.

6. Transit loss: We have recommended to allow a transit loss of 0.8 % in line with
the national trend followed in stations with similar transit distances. It must be
remembered that almost 60-90 % of the coal is from Panem for which transit loss is
not applicable. Further, the GCV of coal received by PSPCL is almost 1200-1500
kcal/kg higher than the national average. The annual transit loss (excluding Panem)
for 2011-12 is 1.23 % for GGSSTP, 1.25 % for GHTP and 0.08 % for GNDTP. Hence
we have recommended a transit loss of 0.8 % on par with CERC norms and norms
set for other utilities.

7. Freight in respect of Monnet: While considering the cost the entire process
must be considered from the purchase of raw coal in mine to the finished washed
157
coal at the TPS. The freight cannot be considered only in isolation for washed coal
and must be considered for the whole cycle.
8. Washery processes: While it is agreed that washed coal is an essential
requirement considering the Govt. of Indias comprehensive fuel policy, the
efficiency of the washing process must not be an uncontrolled parameter and must
be a parameter in the control of the TPS. Hence, we have suggested to go in for
validation of the processes. The processes have to be controllable from the view
point of energy efficiency.

158

Sl.
No.
Recommendations Comment CPRI REMARKS ON PSPCL
COMMENTS
Coal- Overall process
01 For the process of sampling, recording of
quantity, determination of fuel quality
(GCV) a committee may be formed
composed of senior level officers at the
level of SE from Operations, Maintenance,
Efficiency and Fuel along with Chief
Chemists who will supervise, perform
random quality checks and monitor the
entire process of receipt and reporting of
coal quality and quantity received and
consumed in the TPS.
GHTP: An eight member committee
comprising of six No. ASEs/Sr. Xens, Chief
Chemist and Dy. Chief Chemist headed by
S.E./Operation has already been constituted
and functioning at GHTP to supervise quality
of rakes being received at GHTP randomly.
GNDTP: A committee comprising of 7 No.
officers (3 No. ASEs/Sr.Xens and 4 No.
officers from Chemical Deptt.) has already
been formed for performing random quality
checks of received & bunkered coal and
monitor the process of sampling & analysis
at GNDTP.
GGSSTP: A panel of 7 no. ASEs, Sr. Xens,
Chief/Dy. Chief/Sr. Chemist has been
framed for performing random quality
checks of received & bunkered coal and
monitor the process of sampling & analysis.
The entire process of receipt and reporting
of coal quantity received and consumed is
being looked after by an independent fuel
management cell.
OK
Coal-Recording (quantity)
159
02 The data file composed of gross weight,
wagon nos and tare weight may be made
portable to the Fuel Section and Accounts
for archiving of the online data.
There are two No. in motion weigh bridges
installed at GHTP & GNDTP and one No. at
GGSSTP. The software in respect of one No.
weighbridge at GHTP & GNDTP has been
upgraded to fetch all data recorded online
to other offices at each of the power plants.
The software of second weigh bridge at
GHTP & GNDTP is being upgraded shortly,
and then all data available on the computers
will be provided in soft copy to fuel and
accounts cells. However online transfer of
data from weighbridges to fuel section and
accounts wing is being considered.
OK
Fuel oil-Recording (quantity)
03 It is recommended that in GNDTP also,
the wagon dip level measurement may be
taken as the primary measurement for
recording receipt quantity.
At GNDTP, presently LDO is being received
through road mode through truck tankers
and dip is being taken of the truck tanker as
well as the storage tanks to ensure correct
receipt. In case of rail rakes the dip of
storage tanks is taken before and after
unloading to give the measurement of oil.
Further, RADAR based system for oil dip
measurement in the storage tanks has
already been installed. The cabling for the
same is in progress and the system is likely
to be commissioned shortly during the
ongoing activities for commissioning of Unit
#3. This shall give quite accurate
measurement of oil received and the oil
OK
160
stock.
However, the dip level of individual wagons
in case of rail borne supplies shall also be
ensured in future at GNDTP.
Coal Sampling
04 Sampling: The sampling of both receipt
coal as well as bunkered coal at any time
of the day must be witnessed by an officer
level person since the sample determines
the basis for determining station heat rate
and indirectly relates the quantity of
consumption. Periodic surprise checks by
committee members are essential. The
random table details of which wagon to
take the sample must only be told to the
personnel at the last minute by the
Committee members.
Sampling of rakes received at PSPCL plants
is being done randomly in presence of
officers of the committee. It is not possible
to depute one officer always for checking
the sampling of bunkered coal as the same
is collected after every twenty minutes at
GHTP and every 2 hours at GNDTP &
GGSSTP during the running of coal conveyer
belts at each unit round the clock. However,
the sampling of the bunkered coal is being
done in the presence of Senior Chemist.
Instructions regarding not to divulge the
random table details before hand are
already being complied with.
OK
05 Sampling improvement: Receipt coal
sampling must be only through automatic
samplers under the supervision of
chemists. Chemists must witness the
taking of the samples. Automatic samples
can go deep inside the wagon whereas
manual sampling has a tendency to
sample only on the undersurface of the
heap.
There is no automatic sampler available at
PSPCL plants. Further there is no provision
of sampling PANEM coal beyond 0.5mt
depth in the wagons selected for sampling.
Use of automatic samplers will be studied
and procured, if found feasible.
OK
161
06 Bulk density determination: During
reduction process of coal samples coal
density (by standard pot's weight and
volume method) should be measured so
that general record of coal density for
particular coal colliery is available.
The process will be studied for subsequent
implementation after consultation with
CPRI.
OK
Coal Consumption calculation &
Verification of stocks

07 Coal stock verification and reconciliation
may be done once a month.
Physical verification and reconciliation of
stock is being done by Technical audit wing
of PSPCL at end of each quarter. Monthly
coal consumption is revised for each month
of the quarter based on coal stock found
short / excess (as the case may be) after
receipt of final coal stock report by technical
audit wing of PSPCL. As such monthly coal
stock verification is not required.
Monthly stock verification is
being practiced in most
utilities because the month is
used as unit for Heat rate
reconciliation.
08 The coal stock verification must be in the
presence of the committee of senior level
officers as indicated in Section 2.1.1.
The coal stock verification is already being
done by Sr. Xen/Technical audit, PSPCL,
Patiala who is assisted by Sr. Xen /CHP (Op)
and Sr. Xen / Civil.
OK
09 Belt weighers: Belt weighers may be
installed for all conveyors feeding to all
units before entrance to the bunkers so
that unit wise coal consumption can be
arrived at. The unit wise coal consumption
through belt weighers is present only in
GHTP, Lehra Mohabat. The same may be
installed in all units of GGSSTP, Ropar and
GHTP: Belt weighers have already been
installed at GHTP and functional.
Microprocessor based interfaces for belt
weighers at Stage-II has been provided and
the scheme is under study for stage-I units.
GNDTP: Microprocessor based Belt
Weighers are already installed at GNDTP.
Instructions have been imparted to the
OK
162
in all units of GNDTP, Bhatinda. Belt
weighers have emerged as a reliable and
cost effective method of coal
measurement. The signals from the belt
weighers give coal flow in t/h and total
flow and are of the re-setting type. The
coal flow from the coal yard to the units
(total composite flow) can be measured
through these conveyors. In addition to
the total flow to the units from the belt
weighers, the unit wise consumption is
required to be monitored to provide the
unit wise performance. Microprocessor
based interfaces for belt weighers needs
to be installed or multiple time totalizers.
concerned cell (CHP) for taking belt weigher
readings based on the trolley movement in
order to calculate the coal fed to the
individual units. Gravimetric feeders have
already being installed at Unit-3 & 4 after
R&M which will give unit wise coal
consumption.
GGSSTP: Belt Weighers are already
installed at GGSSTP, which give erratic
readings. Gravimetric feeders for the
measurement of coal to each mill, are being
installed in 1 unit and after their successful
performance; the same shall be installed in
other units.
At GGSSTP, in CHP only 2 streams are
provided which feed all the 3 stages of
units, multiple time totalizers may give
frequent interruptions, which the existing
system can ill afford.
Coal-Reporting (quantity)
10 The reporting of the reconciled consumption
must be on a monthly basis. Once the monthly
stock and consumption is reconciled and
arrived at it must be final and there must be
no further reconciliation on a quarterly, bi-
annually or yearly basis.
Coal is reconciled and figures are freezed on
monthly basis after receipt of final report by
technical audit wing of PSPCL at end of each
quarter. No further changes are done in
already freezed values.
Monthly reconciliation cannot
be done with quarterly
measurement. Hence monthly
coal stock reconciliation is
required.
Fuel oil- Reporting (quantity)
11 The reporting of the reconciled consumption
must be on a monthly basis.
Oil is reconciled and figures are freezed on
monthly basis after receipt of final report by
OK
163
technical audit wing of PSPCL at end of each
quarter. No further changes are done in
already freezed values.
Significance of the heating value of coal
& oil

13 The drop in GCV between the receipt coal and
bunkered coal may be brought down to within
150 kcal/kg.
Detailed reply in this regard has been given
at Sr. No. (I) above.
Discussed separately. While
the main contention of PSPCL
is that the measuring methods
are different, this has a
technical implication on the
quantum of thermal energy
purchased and quantum of
thermal energy actually fed
into the boiler. The energy
loss in coal can be of
reasonable order of 150
kcal/kg. Higher energy loss
implies loss of thermal energy
either in the account process
or physically. This needs to be
addressed immediately
through introduction of
measurement of GCV of coal
at the receipt end or tippled
end of the TPS.
14 First-in-first out principle must be adopted for
receipt coals to ensure that certain lots do not
weather for too long.
First in first out principal for receipt coal is
already being implemented as far as
possible.
OK
15 The joint sampling provision in the FSA with
CIL and other collieries must be strictly
Each and every rake received from CIL is OK
164
implemented. being jointly tested by M/s Coal Inspection
Service on behalf of PSPCL. For other
collieries joint sampling is already being
done strictly as per various provisions of the
FSAs with them at plant end.
16 Introduction of additional fogging systems at
various locations in the coal yard as well as at
the junction towers to avoid spontaneous fires
in coal stacks.
GHTP: Utmost care is being taken to avoid
any hot spots in coal stock. However,
concerned officers of CHP have been
instructed to study the locations where
additional fogging system is required to be
introduced.
GNDTP: A portable fogging system has
already been procured for spray in the CHP
& coal pile area.
GGSSTP: Utmost care is being taken to
avoid any hot spots in coal stock. Also, a
portable water spraying system is being
procured for spray in the CHP & coal pile
area. However, matter will be discussed for
any new & innovative equipments available,
if any.
OK
17 Use coal compactors for compaction of the
coal heaps to avoid spontaneous combustion
and also to eliminate seepage of water and
loss of heating value of the coal.
Compaction is being done with the Bull-
Dozers, however possibility of procurement
of coal compactor will be studied.
OK
Coal-Method of testing fuel quality at
site

18 Periodic surprise checks of witness the Reply as per point No.I of this table OK
165
GCV determination for both receipt coal as
well as bunkered coal in a bomb
calorimeter by committee members is
essential.
19 Random samples of both receipt coal as
well as bunkered coal or a certain
percentage of samples (5 to 10 %) as well
as third party testing samples may be sent
to independent, impartial truly third
partly central laboratories whose result
must be final, such as the following:
Nagpur
Dhanbad
CPRI, Bangalore
In case of receipt coal, samples can be
tested from independent labs only in case of
challenge from either party as per FSA.
However, committees have been constituted
at plant level for checking the quality of
rakes randomly. Most of the laboratories
suggested by CPRI have already been
covered for testing of referee sample with
M/s PANEM.
As far as bunkered coal is concerned, GCV is
being tested by automatic bomb calorimeter
of M/s Parr USA which is amongst the most
accurate calorimeters available in the
market so there is no need to check the
GCV in independent laboratories.
OK
20 It is recommended to go for additional set
of sample primary and secondary crushing
equipment including pulverizers.
The procurement of additional set of sample
crushers and grinders is already under
process at GHTP & GNDTP. GGSSTP is
already having 2 set of such equipments
and both are in working condition, so there
is no need of going for any additional sets.
OK
21 Presently, the three stations are having
only bomb calorimeter. Usually, in many
other utilities there are separate bomb
calorimeters for Stage 1 & Stage 2. One
One number additional automatic bomb
calorimeter is being planned for
procurement for each thermal power
OK
166
additional automatic multi-sample bomb
calorimeter is recommended for each
station along with room air conditioners
for maintaining the temperature control of
the cooling water.
station.

Basis for working out station heat rate
(SHR)

22 The receipt coal GCV which is the basis for
payments must also be a part of returns
filed to Regulatory Commission. The
computation of SHR can still be on the
basis of bunkered coal GCV but this value
must not deviate beyond 150 kcal/kg from
the receipt coal GCV value.
Reply as per Sr. No. (I) above. Discussed separately and as in
point No. 13 above.
23 The computation of SHR must be on daily
basis and the monthly value must be
based on daily average. The annual value
must be based on monthly average. The
reporting period for SHR must be monthly.
As Calorific value and specific coal
consumptions are calculated on daily basis
so SHR w.r.t. coal energy is already
available on daily basis at GHTP & GNDTP.
Oil consumption is calculated and finalized
at end of each month with dip stick, so SHR
is calculated and reported on monthly basis.
At GGSSTP, the same is not possible, as
coal consumption is taken on monthly basis.
Unit wise coal consumption data is not
available, however Gravimetric feeders for
measurement of coal to each mill are being
installed in 1 unit and after their successful
performance; the same shall be installed in
other units.
OK
May be implemented after
installation of gravimetric
feeders.
167
Fuel cost- PAYMENTS ASSOCIATED
WITH FUEL RELATED COSTS, REASONS
FOR HIGH LOSS

24 An independent third party validation of
the washery energetics to map the yield
as a function of the input raw coal quality
and washed coal quality is required.
An exercise has been carried out at Sr. No.
(V) above, to work out the cost economics
of M/s Monnet washed coal vis--vis CCL
raw coal. Since, M/s Monnet washed coal is
economical, so independent third party
validation of the washery energetic is not
required at this stage.
CPRI feels that this is essential
to map the yield as a function
of the input raw coal quality.
Energy efficiency of washing
process cannot be an
undefined quantity. There is
scope for improvement in yield
by few percentage points.
25 The coal cost (landed price of coal at the
TPS) can be evaluated in three formats:
Rs. /t = (coal cost +
freight)/receipt weight
Rs./kWh = (coal cost +
freight)/energy generated
Rs./Gcal = (coal cost + freight)/(receipt
weight x GCV of receipt coal) converted in
Gcal to have it in comparable number
values.
The coal costs can be evaluated in all the
three formats.
OK
Transit loss (TL)
26 Considering the above facts it is
recommended to reduce TL to CERC
norms of 0.8 % for CIL & Washed coal. In
the case of washed coal it may be ensured
that washed coal is brought to equilibrium
with respect to moisture before being
loaded onto the rakes. Coals with high
moisture loaded onto wagons likely to give
rise to some weight loss in transit must be
Detailed comments of PSPCL in this regard
have been given at Sr. No. (II) above. CERC
norm of 0.8% transit loss cannot be made
applicable at PSPCL power plants as PSPCL
power plants are at the farthest end from
coal mines as compared to Central
Government generating stations. Therefore
the presently allowed limit of transit loss of
Transit loss has not been
found to have relationship to
distance of transfer.
168
stabilized before loading. Also, since the
majority of the coal (60-90 %) is coming
from Penam, the 0.8 % TL will be only for
CIL coals.
2% is reasonable and acceptable.
Demmurages
27 It was noticed that in all the three TPS wagon
positioning equipment (inhaul-outhaul beetle
chargers or side arm chargers) are either not
present or non in working condition and the
shunter is used for the same. Either these
may be repaired or side arm chargers may be
GHTP: Efforts are being made to repair side
arm chargers installed at Stage-I. No beetle
charger or side arm charger exist at wagon
tipplers of GHTP Stage-II units. However,
procurement of the same under renovation
programme will be studied and implemented
if found techno economically feasible.
GNDTP: There is no space for side arm
charger. Proposal regarding beetel chargers
shall be studied and shall be implemented if
found technically feasible.
GGSSTP: There is no space for side arm
chargers, however Beetel chargers are in
working condition, which are quite fault
prone and also increases the unloading
period.
OK
28 Earlier wagon tippler systems were designed
for 500 & 1000 t/h to empty a rake in 3 h.
Present day systems are available in 1600 t/h
for faster disposal. The detailed study of
wagon tippling systems and coal conveying
may be studied for removal of existing
bottlenecks and for upgradation wherever it is
critical.
To upgrade the existing system, complete
CHP has to be renovated after dismantling
the same, which is not possible as the units
have to be stopped for quite a long period.
The only possible solution for faster
unloading lies in regulated supply (without
bunching) from railways, for the supply of
This option must be kept open
in view of the future increase
in carrying capacity of wagons
by railways.
169
coal free from boulders and stones.
29 Detailed study and upgradation of coal
conveying system especially at GNDTP which
is using vibratory feeders.
The OEM of the conveyor system at GNDTP
i.e. M/S Elecon was asked to study the
existing system and suggest necessary up
gradation to achieve the designed capacity
of CHP. Firm has submitted its report and
the same is being studied for
implementation.
OK
30 Rail tracking system through GPS or
alternative technologies
Related to Railways. However, the proposal
will be studied.
OK
31 Grab cranes for removal of stones from the
wagon tippler area is present in Ropar. The
same may be installed in Bhatinda and Lehra
Mohabat
GHTP: Grabber and loader machine already
exist and functional at GHTP. One more
grabber and loader machine is being
procured.
GNDTP; Possibility for installation of Grab
crane is being explored keeping in view the
space constraint at Wagon Tippler Hopper.
OK
32 Rotary pneumatic or electrical hammers
may be used for crushing coal lumps at the
wagon tippler in place of manual hammering.
GHTP: Since grabber and loader machine
is used to pick coal lumps away from coal
grating efficiently where these are manually
crushed, so any rotary pneumatic or
electrical hammers are not required.
GNDTP: Possibility for installation of
Pneumatic /electric hammers is being
explored keeping in view the space
constraint at Wagon Tippler Hopper.
OK
170
GGSSTP: Possibility for installation of
Pneumatic/electric hammers will be
explored.
Penal overloading charges (POL)
33 Since loading is in the scope of Monnet,
POL may be brought into the scope of
Monnet.
The contract agreement dated 14.08.2002
was signed between PSEB (now PSPCL) and
M/s Monnet Daniels after following
competitive bidding route and as per the
provision in the contract agreement, POL
charges are to borne in the ratio 50:50 by
PSPCL and M/s Monnet. The provisions
contained in the contract agreement are
binding for both the parties.
PSPCL may look for earliest
opportunity to change the
contract agreement.
Costs associated with stones and non-
fuel foreign materials in coal

34 Frequent visits and inspections at the
colliery loading end is essential to
minimize the receipt of stones
Matter is regularly taken up with the CIL to
stop dispatching the coal having stones
mixed with it. Also loading of good quality
coal at loading end is being supervised by
our coal liaison agent M/s KCT & Bros.
OK
35 Random sampling of rakes from washeries
and captive mines in the presence of CIL
officials may be undertaken to sort out the
issue with CIL and convince them that
stones are from CIL.
As per FSA signed with various CIL
subsidiaries, stones are to be distributed
proportionate to the supplies from various
sources of coal. However, efforts will be
made in this regard to sort out the issue.
OK
FSA with Coal India Ltd (CIL)- STUDY OF
FUEL SUPPLY AGREEMENTS (FSAs)

171
36 The joint witness of weighment and
quality determination at the sending end
must be fully utilized for ensuring that
Quantity of each rake is strictly supervised
by M/s KCT, whereas quality of each rake is
inspected by M/s Coal inspection service on
behalf of PSPCL. Witnessing by PSPCL is not
practically possible.
OK
FSA with captive mines (Panem)- STUDY
OF FUEL SUPPLY AGREEMENTS (FSAs)

37 One of the major factors involved in the
payment to Panem is the testing of coal
samples at the TPS. Hence, extra care
must be exercised in sampling and
measurement of receipt coal quality as it
Each and every rake of PANEM is already
being tested. Further, a committee has
already been formed as mentioned at Sr.
No. 1 above for this purpose.
OK
FSA with coal washeries (Monnet Daniel,
ACBL)- STUDY OF FUEL SUPPLY
AGREEMENTS (FSAs)

38 Since washed coal loading is entirely in the
control of Monnet, the POL must be in the
account of the washery. This clause is
recommended to be reviewed and reverted to
include the POL into the scope of the washery.
Same as at Sr. No. 33 above. PSPCL may look for earliest
contract agreement.
39 GCV of both receipt and washed coal is to be
determined, documented and reported for
each and every rake of coal input and output
of washery.
As brought out in last Para of Sr. No. (V)
above, the washery operator is to supply
washed coal after reducing the ash %age in
washed coal w.r.t raw coal as per provisions
contained in the contract agreement and
there is no provision for comparing the GCV
of washed coal with the GCV of raw coal as
has been emphasized by CPRI in its report.
This is required to know the
heat content that is finally
realized after washing - to
determine the energy
efficiency of washing.
undefined quantity.
172
40 Keeping in mind the that the density
differences between coal, mineral matter and
ash are low, the process yield for various
input coals must be got validated by an
independent third party agency such as
CPRI or CFRI, etc.
Same as at Sr. No. 24 above. This is required to know the
undefined quantity.
41 The process energy efficiency map along with
economics for various input coal GCVs and
washed coal GCVs must be got validated by
an independent third party agency such as
CPRI or CFRI, etc..
Same as at Sr. No. 24 above. This is required to know the
undefined quantity.
42 The telemetering system for on-line
information of the in-motion weighbridge
readings of receipt coal received and
beneficiated coal loaded at PSPCL TPS is
essential and must be implemented at the
earliest to provide authentic tamper proof data
on transit loss and total weighments of both
receipt coal and washed coal dispatched at the
Washery.
As per clause 6.6.5 of the contract
agreement, after implementation of
telemetering, the weighment and quality of
washed coal of loading end shall become
final. Since, M/s Monnet has not yet
commissioned the telemetering, so the
quality and weighment of washed coal at
the plant end is final. As per PSPCL's view
point, after telemetering is commissioned,
the provisions of becoming loading end
results for quality and quantity of washed
coal as final, shall be detrimental to PSPCL.
It is further submitted that during
discussions with M/s Monnet it has emerged
OK
173
that telemetering could not be
commissioned by them due to jamming of
communication signals by the Govt.
agencies, as N.K. area is prone to Maoist
/Naxalite.
43 POL at the loading site of washed coal may be
brought fully into the scope of Monnet which
is presently shared 50:50 by Monnet and
PSPCL.
Same as at Sr. No. 33 above. PSPCL may look for earliest
contract agreement.
44 The coal loaded into the rakes must have
equilibrium moisture. This is to ensure that TL
does not occur due to non-equilibrium
moisture in coal evaporating and coal coming
back to equilibrium moisture. Moisture related
TL must be in the scope of the washery.
Coal lost due to increase in moisture is
being booked to the firm as per contract
signed between M/s Monnet.

What about TL. TL must be in
the scope of the washery.
45 The cost benefits of the washery process
which is higher by almost 22-28 % to coal
from other sources, may be reviewed. Apart
from the clauses on quantity of washed coal
delivered, the quality process may be
reviewed. The coal lifted by the washery must
be specified in terms of GCV, ash and
moisture. The sampling frequency of the coal
must be on the basis of similar to rake
sampling, i.e., around 350 kg per 4000-4500
tonnes, i.e., 80 ppm (parts per million).
Regarding cost benefits of the washery, the
reply is the same as at Sr. No. 24 above.
Since, the work of joint sampling and
analysis of CCL raw coal is being carried out
jointly by M/s Monnet on PSPCL's behalf
with CCL, so M/s Monnet will be asked to
provide GCV, ash content and moisture in
raw coal, as recommended in the report.
In case of road mode of coal supplies lifted
by Monnet from CCL, gross sample of the
day is prepared by taking appx. 30 Kg of
sample from every eighth truck after
selecting one truck randomly from first eight
CPRI feels that this is essential
to map the yield as a function
of the input raw coal quality.
undefined quantity and must
not be left open ended.
174
trucks as per clause 1.3 of the FSA with
CCL.
Agreement with liasioning agent
46 The transit loss may be fully included in the
scope of the liasioning agent. The payments
to the Liasion agent must be linked with the
actual coal cost (landed price: coal +freight),
(i.e., Rs. 30/t x coal weight for the rake ) for
every 1 % TL.
If the linking of transit loss with the coal
cost is considered, then it is apprehended
that liaison agent may quote higher rates to
cover his risk and the whole exercise may
be counter productive.
This may be considered in
future agreements.

175

Annex 5
(CPRI comments on discussion
points raised by PSPCL)

176

FUEL STUDY REPORT OF PSPCL TPS FOR PSERC,
CHANDIGARH

REPLIES TO POINTS RAISED DURING DISCUSSIONS BY PSPCL
AT PSERC 20.07.2012

1. It was brought out by PSPCL that GCV measurement at sending end is only under
equilibrated condition (i.e., with inherent moisture and without surface moisture).
PSPCL brought out that surface moisture of the order of 4-5 % can result in a drop
in GCV of 600-750 kcal/kg in the receipt coal. CPRI comments: The issue may be
taken up with appropriate authority for inclusion of the surface moisture at sending
end in the GCV computation thereby giving a more realistic picture of receipt coal
GCV. The as-received basis of GCV would be a more realistic representation of the
coal actually sent out by the colliery and received by the plant. The issue may also
be taken up with appropriate authority for deduction of weight of surface moisture
(besides deduction in GCV) at sending end for purchased coal.
2. It was brought out that non inclusion of surface moisture was one of the reasons
for the GCV drop in bunkered coal as receipt coal at the TPS end was not being
presently measured for GCV. CPRI comments: The receipt coal GCV measurement
for all receipt coal at the TPS wagon tipplers may be measured. The process
followed for measurement could be in two parts: (a) determination of GCV under
equilibrated conditions and (b) determination of total moisture from which the
surface moisture can be computed. The effect of surface moisture can be added to
GCV at 145 kcal/kg for every 1 % surface moisture.
3. The non existence of a uniform process of measurement both under the previous
UHV and also present GCV regimes was brought out by PSPCL. CPRI comments:
Sending end coal at the colliery end is being measured on equilibrated basis in a
bomb calorimeter and total moisture is being recorded (surface moisture is known
but not being considered for GCV correction). The receiving end coal (at tippler of
TPS) and bunkered coal (bunkering belts) going into the boilers may also be
measured on equilibrated basis through a bomb calorimeter. In the case of both
receiving end coal and bunkered coal, the surface moisture effect may be added to
the GCV @ 145 kcal/kg for 1 %. This process would ensure uniformity in coal GCV
measurement in receipt and bunkered coals and would provide a platform for
equitable comparison of drop in GCV. The drop between receipt coal and bunkered
coal as per various authentic sources and studies as given in the report should not
exceed 150 kcal/kg through adoption of coal preservation measures given in the
report such as compacting, etc.
4. It was brought out by CPRI that there is mention to the total moisture, surface
moisture and its effect on quality in the FSA of coal India as follows:

177
FSA of CIL & STATE GENCO

Equilibrated Basis means determination/computation of various
quality parameters such as but not limited to ash, volatile matter, fixed
carbon, Gross Calorific Value etc. expressed at Equilibrated Moisture level
determined at 60% relative humidity (RH) and 40 degree Celsius (C).

Equilibrated Moisture means moisture content, as determined after
equilibrating at 60% relative humidity (RH) and 40 degree Celsius as per
the relevant provisions (relating to determination of equilibrated moisture at
60% RH and 40 degree Celsius) of BIS 1350 of 1959 or amendment thereof.

Surface Moisture means the moisture content present in Coal that is
derived as the difference between Total Moisture and Equilibrated
Moisture, and expressed in percentage terms.

Total Moisture means the total moisture content (including surface
moisture) expressed as percentage present in Coal and determined on as
delivered basis in pursuance to IS.

11.2 Adjustment for analyzed
quality/ Grade

11.2.1 The bills with regard to adjustment for quality, as determined
under Clause 4.7, shall be supported by relevant documents in
respect of the analysis carried out of the following parameters:

a) Total Moisture (%)
b) Equilibrated Moisture (%)
c) Ash (%)
d) Volatile Matter (%)
e) GCV (kcal/Kg)

The same may be pursued with appropriate authority for GCV correction for
surface moisture at the sending end. The same is also applicable to coal from
captive mines.
5. Washed coal: PSPCL pointed out that the saving in cost of coal dumping in ash
dyke is not considered and if this is considered the washing process will be much
more favorable. CPRI comments: While it is agreed that washing of coal is a
mandatory and environmentally beneficial process, regarding the conversion
efficiency of washed coal there is some scope for improvement in conversion
efficiency which may be pursued.

5. In Conclusion:
A uniform procedure of measuring GCV must be adopted, i.e., measuring GCV
in a bomb calorimeter in equilibrated condition (with only inherent moisture)
and the surface moisture (measured through measurement of total moisture
178
for the same sample) must be measured. The effect of surface moisture on
GCV must be added to the GCV obtained through equilibrated conditions to
give the As supplied GCV (at sending end), As received GCV (at
unloading end) and As fired GCV (at the entrance to the bunkers)
on a common and comparable basis.
The difference between the As received coal GCV and As fired coal GC may
be maintained below 150 kcal/kg.
The differences between As supplied (sending end) coal GCV and As received
coal GCV may be taken up with appropriate authority.

Fuel Audit Full Report

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Fuel Audit Full Report

Transféré par

Droits d'auteur :

Formats disponibles

No.

Vous aimerez peut-être aussi