Amid ongoing power crisis, Maharashtra State Power Generation Company (MahaGenco) will acquire a coal mine at Gare Palma in Chhattisgarh's Raigarh district. MahaGenco expects to start coal production by mid-2023 and to achieve annual production of 29 million metric tonnes by 2027-28. Coal will be available at Rs 1,000 per ton against Rs 6,000 to 7,000 per ton procured from Coal India and its subsidiaries. The MahaGenco will pay royalty to the Government of India. The MahaGenco will transport the coal to its generation plants in Maharashtra and it expects to partially tackle the coal supply issue faced by its power plants.
Besides, MahaGenco will also import coal in a bid to meet the gap between coal demand and supply which is affecting the power generation of its plants. This was confirmed by the DCM Ajit Pawar on Friday. As reported by the Free Press Journal, MahaGenco had decided to import 20 lakh tonnes of coal from Indonesia way back in November 2021, even before the Centre recently allowed states to import coal to meet their requirements. Of the 20 lakh tonnes, MahaGenco has issued tenders for the import of 6 lakh tonnes which will be available in phases from May and June for its power generation plants. Coal will be imported at Rs 10,000 to Rs 11,000 per ton from Indonesia.
As far as Gare Palma coal mine is concerned, energy minister Nitin Raut along with MahaGenco CMD Sanjay Khandare early this week met the Chhattisgarh Chief Minister Bhupesh Baghel and requested him to accord the long-pending forest clearance by his government for the mine development. Congress President Sonia Gandhi reportedly intervened and ultimately the Baghel-led Congress government accorded the forest development which will help MahaGenco to complete the land acquisition and start mining from the middle of 2023.
The MahaGenco with its installed thermal generation capacity of 9,330 MW is struggling to get adequate coal supply from Coal India and its subsidiaries.
Against the requirement of 1,38,710 tonnes of coal for these plants to operate at the plant load factor of 85%, they have been daily coal ranging between 1,24,686 tonnes and 1,29,000 tonnes. MahaGenco could supply 7,200 MW during peak hours and if the coal supply improves it would continue to generate more especially during peak hours.
Due to less coal supply and lack of adequate availability of rakes, in addition to less power supply by Adani Power, JSW and Coastal Gujarat Power, the MahaVitaran will have to conduct load shedding of 1400 to 2000 MW daily for five to six days. Besides, MahaVitaran could not purchase 2000 MW from power exchanges.
Raut said that load shedding in the state was a result of an increase in electricity demand and relaxation of the COVID-19 curbs and blamed the Centre for poor management of coal supply.
