Ministry of Power orders captive coal plants to run at maximum capacity from October 1 to Dec 31

New Delhi: The Ministry of Power has directed captive coal-based power plants of 50 MW and above to generate electricity "to the maximum extent of their available capacity" from October 1 to December 31. Whatever they do not consume, they must sell on the power exchanges. The directions were issued on September 25 under Section 11 of the Electricity Act, 2003. They are addressed to the owners of 112 captive generating stations named in the order.

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The ministry linked the order to the supply outlook for the rest of the year. It cited "the prevailing demand-supply scenario and the expected rise in electricity demand in the coming months," and said it was "undertaking various measures to ensure adequate supply of electricity to consumers."

Captive capacity to be used 'to the maximum possible'

Captive plants supply power to the industrial units that own them. The ministry now wants that capacity counted in the country's supply pool. "To optimise availability of electricity generation, it is imperative that entire capacity of all the sources of generating electricity, including the captive generating plants, are utilised to the maximum possible," the order said. It added that the directions were being issued "in the larger public interest, to ensure optimal availability of power to the consumers."

Surplus power to go to exchanges

The order also says where the extra output must go. Generators "shall offer their available surplus generation, after meeting their own captive demand, through the power exchanges," it said. This is to be done "in accordance with the applicable market regulations and procedures."

The order covers fuel as well. Plants must "maintain adequate coal stock so as to ensure availability of fuel for operation of the plant and enable maximum generation."

Weekly reports to the CEA

Compliance will be tracked by the Central Electricity Authority (CEA). Each generator must send the authority a weekly report "indicating generation, captive consumption and sale of power through the power exchanges/other permitted avenues, along with details of available capacity and coal stock, as may be prescribed."

The directions last for three months, until December 31. The ministry said it set that period "taking into account the prevailing power demand-supply position and the requirement for ensuring adequate availability of power in the grid."

Steel, aluminium and cement dominate the list

Most of the 112 stations in the order serve steel, aluminium and cement plants. Refineries, fertiliser, paper, chemical and sugar units make up much of the rest.

In steel, the list includes three Steel Authority of India Limited (SAIL) plants: Rourkela, Durgapur and IISCO. It also names Rashtriya Ispat Nigam Limited's (RINL) Visakhapatnam steel plant and Tata Steel's units at Jamshedpur, Kalinganagar, Meramandali and Athagarh. JSW Steel's Salem works, ArcelorMittal Nippon Steel India, Jindal Steel and Jindal Stainless are also on it.

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Aluminium and zinc producers also figure in the list. Vedanta's Jharsuguda smelter complex is named twice: once for its 9x135 MW captive plant and once for the SEZ smelter unit connected to its 3x600 MW plant. Vedanta's Lanjigarh refinery is listed too. From Hindalco Industries, the order names Aditya Aluminium and its Renusagar and Hirakud units. National Aluminium Company's (NALCO) Angul captive plant and Damanjodi alumina refinery are included. So are Bharat Aluminium Company, Utkal Alumina, and Hindustan Zinc's Chanderia, Zawar and Dariba units.

Cement makers include several UltraTech Cement units, along with ACC, Ambuja Cements, Shree Cement, Dalmia Cement and JK Lakshmi Cement.

Refinery captive plants are also covered. The list includes Indian Oil's plants at Paradip and at the Panipat Refinery and Petrochemical Complex, Nayara Energy, and HPCL-Mittal Energy's Guru Gobind Singh Refinery. Reliance Industries and Jamnagar Utilities & Power are named at Jamnagar. Fertiliser units on the list are Indian Farmers Fertiliser Cooperative's (IFFCO) Paradeep unit and Paradeep Phosphates.

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