The Indian National Trade Union Congress (INTUC) on Wednesday claimed that South Eastern Coalfields, a subsidiary of Coal India, has been diverting the dry fuel mined in the State to industries in other States over the past one year. It has led to a crisis and is adversely impacting the small and medium units in the non-power sector, they added.

“For the past one year, SECL has been consistently declining the share of committed coal supplies to industries in Chhattisgarh and has increased the share of coal outside the State. More than 250 industrial units here are dependent on captive power plants for their smooth business operations and require around 32 million tonnes (mt) of coal annually, which is around 19 per cent of the total production of SECL,” INTUC General Secretary Sanjay Kumar Singh told the BusinessLine.

Local industries suffering

In a letter to Prime Minister Narendra Modi on Monday, INTUC President G Sanjeeva Reddy said, “This is to bring to your kind notice that in Chhattisgarh, SECL, the largest ancillary company of CIL, produces 165 mt of coal approximately. This coal was utilised in all the industries in Chhattisgarh and other industries beyond Chhattisgarh too.”

“But for the last one year, due to the insensitive management and support from the Central government, this allotment has been continuously reduced in Chhattisgarh, but is being allotted to other States. This unfair and unjust allotment is adversely impacting the local industries, bringing a closure to small and medium local units and hence bringing major job losses, effecting unemployment of the marginalised communities and ultimately the state economy,” Reddy added.

“It seems this is a deliberate effort to disregard the interests of the State. CIL and SECL are trying to stop the development of Chhattisgarh,” said Singh.

‘Will take action’

“The data I have shared clearly states that coal stocks at thermal power plants in Chhattisgarh are not adequate. Despite this, coal is being diverted to industries outside the State. We have appealed to the Prime Minister, Chhattisgarh Chief Minister, CIL CMD and SECL CMD on the issue. If no action is taken by February 20, then the INTUC will not allow coal rakes to leave the State. This is a matter of survival of industries,” Singh warned.

Coal supply mismanagement

Sharing statistics to bolster his claims, Singh said Chhattisgarh has 56 billion tonnes of coal reserves, which is 18 per cent of the total coal available in the country. Chhattisgarh accounts for 25 per cent of the coal produced in India. At present, power plants in Chhattisgarh are getting about 40 per cent of the coal produced in the State, while 60 per cent of the dry fuel is transported to other States.

“According to the Central Electricity Authority, coal stocks with independent power plants (IPPs) like Korba Super Thermal Power Station (STPS) is 12.5 days, Sipart Super Thermal Power plant is 22 days, Korba West plant (6.67 days), Marwa Tendubhata Thermal Power Station (12.88 days), Dr. Shyama Prasad Mukherjee Thermal Power Station (24.38 days), Bhilai Thermal Power station (18 days) and Akaltara Thermal Power Plant (14.26 days),” he added.

Singh pointed out that coal-based non-power sector industries in Chhattisgarh generate around 4,000 megawatt (MW) of power. These industries require 88,000 tonnes of coal per day, and around 26 lakh tonnes per month. SECl has to provide 65 mt of coal annually to these industries. In October 2021, the pact of these non-power sector industries with SECL got over, and the new agreement for Tranche-V is yet to be signed.

“SECL assured these industries that till the Tranche-V agreement is not signed, the miner will make available coal through auctions. SECl has to provide 65 mt of coal annually, or around 50 lakh tonnes per month, through auctions to the non-power sector in Chhattisgarh, but due to its mismanagement, between October 2021 to January 2022, only 30 lakh tonnes of coal was delivered,” Singh claimed.

As of February 7, the actual coal stock with power plants under the Chhattisgarh State Power Generation Company (CSPGCL) is 5,29,700 tonnes, while the normative stocks required is 9,44,100 tonnes. The day wise normative stock requirement is 21.8 days, according to data from the National Power Portal.

According to data shared by INTUC, rakes provided to the power sector in Chhattisgarh were 272-274, and the non-power sector was 15-17 between January 1-16, whereas during January 17-31, the power sector got 275-277 rakes and non-power 12-14. In December 2021, power sector was allotted 269 rakes, while non-power industries got 17 rakes.

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