Writes strong letter to Singareni CMD: TGGENCO decries supply of poor-quality coal by SCCL

In a major development, peeved Telangana State Power Generation Corporation Limited (GENCO) has written a strongly worded letter to Singareni Collieries Company Limited (SCCL) on the supply of coal of inferior quality to the thermal power stations in the state.

In the letter, GENCO Chairman and Managing Director S Harish informed the SCCL Chairman and Managing Director N Balaram that the coal company has been supplying coal of high grade to other states, while supplying low grade coal to TGGENCO thermal stations. “Being the SCCL mines located in the Telangana State, it is already requested that priority should be given to the GENCO thermal units in supplying the higher-grade coal to meet the increased power demand (sic).”

Further, the GENCO CMD said, most of the coal supplied by SCCL to the Genco thermal units is below the “FSA grade (G 14/G 15 grade of GCV – 2800-3400 Kcal/kg)”. Harish explained in the letter the impact of the coal of poor quality on the quality power generation. He said that “Units are forcibly operating at partial loads to loss of generation. Reduction in plant load factor of units thereby reduction of availability of the stations against TGERC (Electricity Regulatory Commission) norms causing loss of revenue to Genco. The use of coal caused the wear and tear of boiler pressure parts”, the officials said, adding that poor quality coal increased in auxiliary power consumption and heat rate. The high ash content in the coal also caused a burden on the ash evacuation system.

The other negative impacts of the use of poor-quality coal was that the coal consumption has increased beyond the designed coal requirement, which results in additional freight and handling charges also.

The Genco CMD said in the letter “The TGERC was approving annual fixed charges for thermal stations based on the normative plant availability of 85 per cent.

Any reduction in the plant availability against the normative, the fixed charges shall be regulated on pro rata basis. Due to receipt of poor-quality coal, it is unable to push the declared capacity up to its rated capacities due to which fixed charges are being affected.

The Genco officials explained with data on the poor-quality coal received during September and till October 12 to KTPC -4,5, 7, BTPC, YTPS, and KTPP – one thermal project. Harish requested the Genco CMD to arrange to supply designated coal to thermal plant as per the fuel supply agreement to operate the units at their rated capacities.