PIC: V KARTHIKALAGU

In response to the union government’s notification of insufficient coal supply to meet internal needs and the heavy power demand expected during the upcoming summer, Tangedco is planning to increase its import volume from 6% to 10% of its total coal consumption. “We recently imported 3.6 lakh tonnes of coal to cope with the rising demand,” a senior Tangedco official told TNIE.

However, the imported coal volume has at present taken a dip from 6% to 4%. The slump is attributed primarily to the high cost of imported coal, which further elevates production expenses and cuts into the revenue margins of the power utility. Though the plan is to increase the imported coal volume, considering the high costs, Tangedco is trying to find ways to minimise the use of imported coal, the official added.

As LS elections are due for the upcoming summer, the power demand is expected to surge above the usual numbers. On April 20 this year, the power demand reached 19,347 MW. The Central Electricity Authority predicts that the daily power demand in Tamil Nadu may rise up to 22,000 MW next summer.

“We currently source coal for thermal power stations from Talcher, IB Valley Mines of Mahanadi Coalfields in Odisha, and Singareni mines in Telangana. The annual requirement for state-owned power stations, with a total capacity of 4,320 MW, is 223.4 Lakh Tonnes Per Annum,” another official said.

Regarding the upcoming thermal projects, the official explained, “The North Chennai Stage III thermal power plant, with a total production capacity of 800 MW, is set to commence commercial operations by the end of the year. The Udangudi power plant will also become operational next year. These new power plants will necessitate an increased coal supply, making imported coal indispensable in the days to come.”

In the upcoming board meeting, decisions will be made to increase the percentage of imported coal. Moreover, the union government should also approve the proposal to increase imports, the official stated.