All India Coal Workers’ Federation (AICWF) and Electricity Employees Federation of India (EEFI), the two most vibrant and broad-based federations of Energy workers & employees of our country are astonished to find some directions and statements related to the import of coal for thermal power generation issued by the Central government which are evidently contradictory, misguiding, deceitful, and against the interest of the energy consumers, people and the nation as a whole.
In the recent circular issued on 1st September, 2023 in seriatim to the earlier order dated 9th January, 2023, the Ministry of Power, Government of India has directed all Domestic Coal Based (DCB) GENCOs (Central, State and Independent Power Producers) to mandatorily import and blend 4% coal through open bidding process till 31st March, 2024; the purported cause mentioned therein claims that the supply of coal is not commensurate with the coal requirement. On the other hand, in a strange and hilarious move, the Ministry of Coal of the same government through a press release on 5th September, 2023 has reaffirmed adequate availability of coal for meeting the increasing energy demand in the country.
We urge upon the conscious people of our country to call up that, in April 2022, India was pushed towards acute power shortage due to alleged unavailability of coal supplies and Modi government dictated GENCOs to import coal for 10% blending before July 2022. Whereas during the same period, the ruling Government claimed in Rajya Sabha that there was no shortage of coal in the country. The imported fuel cost went up to Rs 7-8 per unit in comparison to the Rs 2 per unit cost from domestic Coal India Ltd. (CIL). Strikingly our Public sector flagship Power Producer NTPC has reported more than 7% dip in its consolidated net profit for the September 2022 quarter due to the cost of this imported coal.
The coal production and dispatch is majorly planned on the basis of estimated annual power demand projected by the Central Electricity Authority (CEA) and Grid India, the two Central nodal agencies. Corresponding government bodies like Coal India, Railways, State and Central energy related agencies schedule their target based on the expected growth of power demand levels and domestic coal requirements. Markedly, while there were a year-on-year 14.7% growth reaching to 893.08 Million Tonnes in raw coal production and 7.1% growth reaching to 877.50 Million Tonnes in coal dispatch in 2022-23, 45.66% growth in Pithead Coal Stock in addition to 5.80% growth in Coal Dispatch to power sector resulting in 6.58% increase in thermal power generation during Apr-Aug 2023 and 25.08% growth of Overall Coal Stock Position reaching to a commendable reserve of 86.00 MT on 31st August 2023 (compensating more than 40 days’ demand), any alleged gap of demand and supply of coal is certainly emanating from the staged incapacity of Central government to set the target rightly and ensure the dispatching of coal by providing sufficient rakes.
Strikingly, while Power Ministry is claiming that there may be 7 MT deficit of coal for power generation during October 2023 to March 2024, it is directing to import around 20 MT. Note that, the share of steam coal imports from Australia was insignificant until 2020 and shoot up to 13% in FY22 (the Adani Carmichael coal mine of Queensland, Australia produced its first shipment of coal in December 2021).
Meanwhile, in January 2023, Central Electricity Regulatory Commission (CERC) had issued an order responding to the petition of Tata Power Company Ltd to compensate the cost plus reasonable margin of profit for high priced imported coal based (ICB) power plants of Tata, Adani, Essar and other private corporates. Further CERC mooted a paper in June 2023 to introduce a high price index for Australian and South African coal. The whole plot is distrustful and deceiving.
We can’t restrain ourselves from questioning and opposing these obnoxious anti-people policies and directions. We demand that the Central government must disclose the names of the groups playing vital and determining role behind these decisions and policies in making. If Government of Bharat fails to answer, People of India will rise to the occasion.
Clearly, the entire blue-print of coal crisis is nothing but a coal scam. The whole burden of imported coal based high priced electricity will be imposed upon the consumers reflecting into a tariff shock. It will impact badly upon our foreign currency reserve and current account balance. All India Coal Workers’ Federation (AICWF) and Electricity Employees Federation of India (EEFI) demand immediate withdrawal of imported coal blending dictate and needful arrangement of rakes to ensure full-fledged operation of CIL. AICWF and EEFI call upon all section of workers and people in general to raise their voice and unmask the unholy nexus between the Modi government and its crony corporate masters which are strategically obstructing and hindering the fullest capacity utilization of our PSUs.
