NTPC's Kaniha Plant Set to resolve its Coal Crisis with signing of new FSAs

India's second largest power station, NTPC's 3,000 MW Kaniha plant that has been facing fossil fuel supply shortage for almost a year has finally drawn up a long term fuel security agreement plan to fulfill its coal requirement.

The super thermal power plant has finalised two alternate sources of coal, Bhubneshwari and Dulanga mines to meet the coal shortage and counter frequent disruptions in supply from existing mines-linkages. According to the reports, coal from Bhubaneswari mines will be transported to the newly constructed Lingaraj-3 siding, dedicated to NTPC, from where it will be taken to the plant through rakes. In addition, NTPC's own coal block, Dulanga mines, will supply coal to Talcher-Kaniha through road-cum-rail mode.

The plant needs 55,000-tonne coal daily to run all its six units. In July last year, illegal stoppage of mines has made vulnerable the mining conditions at Talcher coalfields as production and supply of coal from the coalfield has been paralysed following an accident due to strata failure in mine under Bharatpur area. Subsequently in the following month, the Kaniha's plant three of its 500MW units had shut down amid fossil fuel shortage.

The power station already has a fuel supply agreement (FSA) with Mahanadi Coalfields Ltd and Eastern Coalfields Ltd. As per its linkages, it has been drawing coal from Lingaraj and Kaniha mines. Besides, it also takes coal from other mines in Talcher and IB valley coalfields. Still the power station has been reeling under coal supply crisis due to various factors.