Fuel Audit Full Report

8/12/2019 Fuel Audit Full Report

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No.: CPRI/ERED/ EA/117/12

Report

Submitted to

Punjab State Electricity Regulatory Commission,

Chandigarh

On

Fuel Audit of PSPCLs Thermal Generating

Stations(Work order No.PSERC/Tariff/T/152/8792)

Submitted by

August 2012

ENERGY EFFICIENCY & RENEWABLE ENERGY DIVISIONCentral Power Research Institute,

Prof. Sir C.V. Raman Road, P.B. No 8066,Sadashivnagar, Bangalore 560 080.

E-mail:[email protected]:http://www.cpri.in
mailto:[email protected]:[email protected]:[email protected]://www.cpri.in/http://www.cpri.in/http://www.cpri.in/mailto:[email protected]


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Fuel audit study of PSPCL thermal power stations for PSERC, Chandigarh - CPRI Report

Project Summary

01 Title: Fuel audit of PSPCLs Thermal Generating Stations.

02 Work Order No. PSERC/Tariff/T/152/8792. Dt-10-1-2012.

03 Sponsoring agency: Punjab State Electricity Regulatory Commission, Chandigarh

04 Contact Person (sponsorer): Er. Suresh Singla, Director (Tariff),PSERC, ChandigarhMob: +91 9815461188

05 Project implementing agency: Central Power Research Institute,P.B. No. 8066, Sir C.V.Raman Road,Sadashivanagar Sub-P.O.,Bangalore-560080Tel:080-23604682;+91 9448459587FAX: 080-23604682, 23601213

06 Contact Person (projectimplementing agency):

M. Siddhartha Bhatt, Additional Director (ERED)Central Power Research Institute,P.B. No. 8066, Sir C.V.Raman Road,Sadashivanagar Sub-P.O.,Bangalore-560080Tel: 080-23604682; +91 9448459587FAX: 080-23604682/23601213E-mail:[email protected];[email protected]

07 Energy audit team :

(At site)

M. Siddhartha Bhatt, Additional Director

N. Rajkumar, Engineering Officer

08 Objectives: To conduct a fuel audit at the PSPCL power plants andrecommend measures related to saving in fuel.

09 Scope of work: i. Study system of recording, sampling,measurement, reporting, verification & accountingfor coal and Oil receipts, consumption andstocking as inventory.

ii. Identify key constraints with the current fuelaccounting system across process, technology,skills and facilities.

iii. Study the Fuel supply agreements &evaluate whether there is any deviation andprocedural gaps.

iv. Measure the Gap between billed quality andquantity vis--vis actual receipt of coal and oil.

Ascertain the loss and assess reasons for highlosses, if any.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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v. Submit report on findings, along withrecommendations for proper fuel accounting.

vi. To check more precisely the methodology

regarding computation of cost of fuel beingpassed on to the consumers as an uncontrollable

10 Report No.: CPRI/ERED/117/12

11 Power station: PSPCLs Thermal Generating Stations

12 Date of conduct of study: GGSSTP, Ropar: 1-3rd February 2012GNDTP, Bhatinda: 4-6thFebruary 2012GHTP, Lehra Mohabbat: 7-9thFebruary 2012Reply to comments: 17thJuly 2012Reply to points raised in meeting with PSPCL: 20thJuly 2012

13 Date of issue of report: 13t Aug 2012

14 Signature of Energy AuditTeam Leader:

15 Signature of the DivisionHead:


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i

EXECUTIVE SUMMARY

The fuel audit has covered the complete study of coal and fuel oil including the fuelsupply contract agreements. The salient areas of fuel saving and cost reduction areas follows:

Review of the measuring methods and points of measurement of GCV of coal. Reduction in the drop of GCV of bunkered coal vis--vis receipt coal.

Reduction in transit loss between the mine and the TPS.

Reduction in demurrages through improvement in unloading infrastructure.

Reduction in quantities of stones received through more vigilance at theloading end.

Review of contract with washeries regarding the quantity and quality of coalinputs and outputs.

Achievable station heat rate

The investment and savings are as follows:

Sl.No.

Type of measure Investment

(Rs. Inlakhs)

Savings(Rs. Lakhs)

Pay backperiod

(months)+

01 Improvement in coalquality and quantitymeasurement processes;measurement of bothreceipt and bunkered coalat the TPS.

309 GGSSTP 20670 1 month

GNDTP 5410

GHTP 4530

Total 30610

02 Improvement in unloadinginfrastructure, coalmanagement at the coalyard and reduction ofdemurrages

489 GGSSTP 162.71 29.8

months

(2.5 years)

GNDTP 27.15

GHTP 7.29

Total 197.15

03 Improvement in TL 60 GGSSTP 170.54 2 months

GNDTP No TL

GHTP 196.15

Total 366.69

04 Reduction in stones inreceipt coal

nil GGSSTP 368.62 Notapplicablesince no

investment

GNDTP Stones withinlimits

GHTP 177.13

Total 545.75

05 Total investment andsaving

858 GGSSTP 21371.87 1 month

GNDTP 5437.15

GHTP 4910.57

Grand total 31719.59


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ii

Sl.

No.

TPS Saving

Rs. In lakhs

01 GGSSTP 21371.87

02 GNDTP 5437.1503 GHTP 4910.57

Total 31719.59


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iv

Reduction in demmurages through improved unloading infrastructure

Upgrading coal handling capacity of tipplers and conveyors; and mechanicalequipment for removal of stones could bring down dummerages.

The unloading infrastructure at the three stations needs to be comprehensivelyreviewed to keep in tune with the increasing of the wagon capacity by 20 % (withfurther increase to 74 t wagon capacity by railways in the offing) as well asreduction in unloading time by 30 % (7 h as compared to 10 h earlier). Theupgradation of the apron feeder capacity, conveyor belt capacity, tippler capacity,etc., needs to be studied keeping the futuristic scenario. Wagon position equipment(in-haul out-haul betel charges or side arm charges) must be put into service orpurchase a new.

Reduction in POL charges

POL can be minimized by higher level of vigilance from the Liasion agent as well asthe PSPCL officials at the sending end. Since loading is in the scope of Monnet, POLmay be brought into the scope of Monnet (presently it is 50/50 between Monnet andPSPCL).

Reduction in quantities of stones received

The percentage of stones at GGSSTP is on the higher side (1.2-1.8 %) and stepsneed to be taken to bring them to under 0.25 % of the receipt coal.

Contracts with Coal India and captive mines

The inclusion of surface moisture in computation of the GCV (which is presentlybeing computed on equilibrated basis which considers only inherent moisture) of thesending end may be taken up with the appropriate authorities.

Contracts with washeries

The overall energetics of the washed coal vis--vis the benefits are presently noteconomical. Presently the washed coal is expensive by almost 22-28 % as comparedto the raw coal. The washed coal must be cost economical in addition to theenvironmental obligation to not transport coal above 34 %. A validation of theprocess must be undertaken by a neutral third party agency at the earliest.

In the case of MDL the UHV of the raw coal lifted by the washeries is recorded. Inthe case of Dipika washery of SECL, the band width of UHV of F grade is varyingbetween 2400 to 3600 kcal/kg, implying that there is almost 1200 kcal/kg differencebetween the band limits of the F grade.


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vi

Sl.No. Recommendations

Time frame forimplementation,

months

Coal- Overall process01 For the process of sampling, recording of quantity,

determination of fuel quality (GCV) a committee may beformed composed of senior level officers at the level of SEfrom Operations, Maintenance, Efficiency and Fuel alongwith Chief Chemists who will supervise, perform randomquality checks and monitor the entire process of receiptand reporting of coal quality and quantity received andconsumed in the TPS.

2

Coal-Recording (quantity)02 The data file composed of gross weight, wagon nos and

tare weight may be made portable to the Fuel Section andAccounts for archiving of the online data.

4

Fuel oil-Recording (quantity)03 It is recommended that in GNDTP also, the wagon dip

level measurement may be taken as the primarymeasurement for recording receipt quantity.

1

Coal Sampling04 Sampling: The sampling of both receipt coal as well as

bunkered coal at any time of the day must be witnessedby an officer level person since the sample determines thebasis for determining station heat rate and indirectlyrelates the quantity of consumption. Periodic surprisechecks by committee members are essential. The randomtable details of which wagon to take the sample must onlybe told to the personnel at the last minute by theCommittee members.

2

05 Sampling improvement: Receipt coal sampling mustbe only through automatic samplers under the supervisionof chemists. Chemists must witness the taking of thesamples. Automatic samples can go deep inside the

wagon whereas manual sampling has a tendency tosample only on the under surface of the heap.

4

06 Bulk density determination:During reduction processof coal samples coal density (by standard pot's weightand volume method) should be measured so that generalrecord of coal density for particular coal colliery isavailable.

1

Coal Consumption calculation & Verification ofstocks

07 Coal stock verification and reconciliation may be done

once a month.

1


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08 The coal stock verification must be in the presence ofthe committee of senior level officers as indicated inSection 2.1.1.

09 Belt weighers: Belt weighers may be installed for all

conveyors feeding to all units before entrance to thebunkers so that unit wise coal consumption can be arrivedat. The unit wise coal consumption through belt weighersis present only in GHTP, Lehra Mohabat. The same maybe installed in all units of GGSSTP, Ropar and in all unitsof GNDTP, Bhatinda. Belt weighers have emerged as areliable and cost effective method of coal measurement.The signals from the belt weighers give coal flow in t/hand total flow and are of the re-setting type. The coalflow from the coal yard to the units (total composite flow)can be measured through these conveyors. In addition tothe total flow to the units from the belt weighers, the unitwise consumption is required to be monitored to providethe unit wise performance. Microprocessor basedinterfaces for belt weighers needs to be installed ormultiple time totalizers.

6

Coal-Reporting (quantity)10 The reporting of the reconciled consumption must be on

a monthly basis. Once the monthly stock andconsumption is reconciled and arrived at it must be finaland there must be no further reconciliation on a quarterly,

bi-annually or yearly basis.

1

Fuel oil- Reporting (quantity)11 The reporting of the reconciled consumption must be on

a monthly basis.1

Significance of the heating value of coal & oil13 The drop in GCV between the receipt coal and bunkered

coal may be brought down to within 150 kcal/kg.2

14 First-in-first out principle must be adopted for receiptcoals to ensure that certain lots do not weather for toolong.

1

15 The joint sampling provision in the FSA with CIL and othercolleries must be strictly implemented.

1

16 Introduction of additional fogging systems at variouslocations in the coal yard as well as at the junction towersto avoid spontaneous fires in coal stacks.

2

17 Use coal compactors for compaction of the coal heaps toavoid spontaneous combustion and also to eliminateseepage of water and loss of heating value of the coal.

3

Coal-Method of testing fuel quality at site18 A uniform method of coal measurement may be adopted

for receipt and bunkered coal through GCV at equilibratedconditions in a bomb calorimeter and adding the effect of


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surface moisture to the GCV at the rate of 145 kcal/kg per1 %.

19 The consideration of effect of surface moisture on theGCV for coal purchased from the collieries may be takenup at the appropriate forum.

20 Periodic surprise checks of witness the GCV determinationfor both receipt coal as well as bunkered coal in a bombcalorimeter by committee members is essential.

1

21 Random samples of both receipt coal as well as bunkeredcoal or a certain percentage of samples (5 to 10 %) aswell as third party testing samples may be sent toindependent, impartial truly third partly centrallaboratories whose result must be final, such as thefollowing:

Central Institute of Mining & Fuel Research

(CIMFR) (Formerly CFRI), Nagpur Central Institute of Mining & Fuel Research

(CIMFR) (Formerly CFRI), Dhanbad

CPRI, Bangalore22 It is recommended to go for additional set of sample

primary and secondary crushing equipment includingpulverizers.

4

23 Presently, the three stations are having only bombcalorimeter. Usually, in many other utilities there areseparate bomb calorimeters for Stage 1 & Stage 2. One

additional automatic multi-sample bomb calorimeter isrecommended for each station along with room airconditioners for maintaining the temperature control ofthe cooling water.

4

Basis for working out station heat rate (SHR)24 The receipt coal GCV which is the basis for payments

must also be a part of returns filed to RegulatoryCommission. The computation of SHR can still be on thebasis of bunkered coal GCV but this value must notdeviate beyond 150 kcal/kg from the receipt coal GCV

value.

1

25 The computation of SHR must be on daily basis and themonthly value must be based on daily average. Theannual value must be based on monthly average. Thereporting period for SHR must be monthly.

1

Fuel cost- PAYMENTS ASSOCIATED WITH FUELRELATED COSTS, REASONS FOR HIGH LOSS

26 An independent third party validation of the washeryenergetics to map the yield as a function of the input rawcoal quality and washed coal quality is required.

1

27 The coal cost (landed price of coal at the TPS) can beevaluated in three formats:

1


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x

to sort out the issue with CIL and convince them thatstones are from CIL.FSA with Coal India Ltd (CIL)- STUDY OF FUELSUPPLY AGREEMENTS (FSAs)

38 The joint witness of weighment and quality determinationat the sending end must be fully utilized for ensuring thatquality and quantity are in order.

1

39 The FSA has provisions for consideration of the totalmoisture in the quality. The issue may be taken up withappropriate authorities for consideration of the coal GCVon the basis of inherent moisture plus the surfacemoisture in the coal loaded at the sending end. In otherwords the inherent moisture effect of 145 kcal/kg for 1 %may be added to the presently determined GCV based on

equilibrated moisture.FSA with captive mines (Panem)- STUDY OF FUELSUPPLY AGREEMENTS (FSAs)

40 One of the major factors involved in the payment toPanem is the testing of coal samples at the TPS. Hence,extra care must be exercised in sampling andmeasurement of receipt coal quality as it seriouslyimpacts the fuel price.

1

41 The FSA with captive mines has provisions forconsideration of the total moisture in the quality. The

issue may be taken up with appropriate authorities forconsideration of the coal GCV on the basis of inherentmoisture plus the surface moisture in the coal loaded atthe sending end. In other words the inherent moistureeffect of145 kcal/kg for 1 % may be added to thepresently determined GCV based on equilibrated moisture.FSA with coal washeries (Monnet Daniel, ACBL)-STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

42 Since washed coal loading is entirely in the control ofMonnet, the POL must be the in the account of the

washery. This clause is recommended to be reviewed andreverted to include the POL into the scope of thewashery.

3

Analysis of details of FSA:43 GCV of both receipt and washed coal is to be determined,

documented and reported for each and every rake of coalinput and output of washery.

1

44 Keeping in mind the that the density differences betweencoal, mineral matter and ash are low, the process yieldfor various input coals must be got validated by an

independent third partyagency such as CPRI or CFRI,etc..

3


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45 The process energy efficiency map along with economicsfor various input coal GCVs and washed coal GCVs mustbe got validated by an independent third party agencysuch as CPRI or CFRI, etc..

3

46 The telemetering system for on-line information of the in-motion weighbridge readings of receipt coal received andbeneficiated coal loaded at PSPCL TPS is essential andmust be implemented at the earliest to provide authentictamper proof data on transit loss and total weighments ofboth receipt coal and washed coal dispatched at theWashery.

3

47 POL at the loading site of washed coal may be broughtfully into the scope of Monnet which is presently shared50:50 by Monnet and PSPCL.

3

48 The coal loaded into the rakes must have equilibrium

moisture. This is to ensure that TL does not occur due tonon-equilibrium moisture in coal evaporating and coalcoming back to equilibrium moisture. Moisture related TLmust be in the scope of the washery.

1

49 The cost benefits of the washery process which is higherby almost 22-28 % to coal from other sources, may bereviewed. Apart from the clauses on quantity of washedcoal delivered, the quality process may be reviewed. Thecoal lifted by the washery must be specified in terms ofGCV, ash and moisture. The sampling frequency of the

coal must be on the basis of similar to rake sampling, i.e.,around 350 kg per 4000-4500 tonnes, i.e., 80 ppm (partsper million).

1

Agreement with liasioning agent50 The transit loss may be fully included in the scope of the

liasioning agent. The payments to the Liasion agent mustbe linked with the actual coal cost (landed price: coal+freight), ( i.e., Rs. 30/t x coal weight for the rake ) forevery 1 % TL.

Next agreement


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Recommendations for unloading infrastructure, coalmanagement in TPS & reduction of demmurages

Sl.

No. Particulars

Time

framefor

implementation,months

Anticipated

benefits

Anticipated

investment,Rs. (lakhs)(3 stations)

01 Installation of in-haul out-haul betel chargers/sidearm chargers in CHPs of thethree stations

4 Saving inunloading

time

300

02 Use coal compactors for

compaction of the coalheaps.

4 Minimizingcoal

deterioration

90

03 Introduction of foggingsystemsat various locationsin the coal yard

4 Reduction ofpile

combustion

60

04 Rotary pneumatic orelectrical hammers forcrushing coal lumps

4 Processrequirement

9

05 Grab cranesfor removal ofstones

6 Processimprovement

30

06 Total investment requiredProcess

improvement Rs. 489lakhs07 Anticipated savings for 3 TPS Rs.

197.15 lakhs08 Pay back period 2.5 years


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Recommendations for improvement in coal quantityand quality measurement processes

Sl.No. Particulars

Timeframe forimplemen

tation,months

Anticipatedbenefits

Anticipatedinvestment,Rs. (lakhs)(3 stations)

01 Additional set of sample primaryand secondary crushingequipment including pulverizers

4 GCVdetermination

60

02 Software for online coal energy

management

4 Tracking of

coal losses

60

03 One additional automatic multi-sample bomb calorimeter alongwith room air conditioners

4 GCVdetermination

60

04 Microwave or Ultrasonic bunkerlevel monitoring system withdigital system


24

05 Automatic auger sampling ofcoal from wagons in a rake


60

06 Automatic online sampling ofconveyor coal going intobunkers.

6 Processrequirement 45

07 Total investment required Processimprovements

Rs. 309 lakhs

08 Anticipated savings for 3 TPS Rs. 30610lakhs

09 Pay back period 1 month


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Recommendations for TL reduction through monitoringof railway movement

Sl.No.

Particulars Timeframe forimplemen

tation,months

Anticipatedbenefits

Anticipatedinvestment,Rs. (lakhs)(3 stations)

01 Rail tracking system throughGPS or alternative technologies

6 Saving intransit loss

60

02 Total investment required Processimprovements

Rs. 60 lakhs

03 Anticipated savings for 3 TPS Rs. 366.69lakhs

04 Pay back period 2 months

Recommendations for reduction in stones in receiptcoal

Sl.

No.

Particulars Time

frame forimplemen

tation,months

Anticipated

benefits

Anticipated

investment,Rs. (lakhs)(3 stations)

01 Taking up with Collieries forreduction in stones

6 Increasedquantity of

coal

nil

02 Total investment required Increasedquantity of

coal

Nil

03 Anticipated savings for 3 TPS Rs. 545.75lakhs

04 Pay back period Nil since noinvestment


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CONTENTSPageNos.

1.0 INTRODUCTION 11.1 Scope of the fuel study 11.2 Experimental work 2

2.0 RECORDING, SAMPLING, REPORTING, VERIFICATION ANDACCOUNTING OF FUEL- OVERALL PROCESS, KEY CONSTRAINTS ANDASSESSMENT OF EFFECTIVENESS

2

2.1 Overall process 2

2.2 Recording (quantity) 22.3 Sampling 52.4 Accounting 62.5 Consumption calculation & Verification of stocks 72.6 Auditing 92.7 Reporting (quantity) 9

3.0 METHOD OF TESTING OF COAL & FUEL OIL AT SITE, BASIS FORRELEASE OF PAYMENT & BASIS FOR WORKING OUT THE STATION HEATRATE

10

3.1 Significance of the heating value of coal & oil 10

3.2 Method of testing fuel quality at site 14

3.3 Release of payments 16

3.4 Basis for working out station heat rate (SHR) 16

4.0 PAYMENTS ASSOCIATED WITH FUEL RELATED COSTS, REASONS FORHIGH LOSS

17

4.1 Fuel cost 17

4.2 Freight 194.3 Transit loss 19

4.4 Coal handling contract charges 24

4.5 Demmurages 24

4.6 Siding charges 27

4.7 Penal overloading charges (POL) 27

4.8 Commission to liasoning agents 28

4.9 Payment to railway staff 28


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4.10 Coal stock maintenance cost 28

4.11 Weigh bridge labour cost 29

4.12 Costs associated with stones and non fuel foreignmaterials in coal

29

4.13 Status of rebates offered by railways or other agencies 30

5.0 STUDY OF FUEL SUPPLY AGREEMENTS (FSAs) 30

5.1 FSA with Coal India Ltd (CIL) 30

5.2 FSA with captive mines (Panem) 31

5.3 FSA with coal washeries (Monnet Daniel) 33

5.4 Agreement with liasoning agent 41

6.0 METHODOLOGY OF COMPUTING THE COST OF FUEL BEING PASSEDONTO THE CUSTOMERS AS AN UNCONTROLLABLE COST 41

7.0 COMPARISON OF FUEL PARAMTERS WITH NATIONAL/INTERNATIONAL STANDARDS.

42

8.0 CONCLUSIONS 43

REFERENCES 46

Annexure1: Figures, graphs and photographs 48

Annexure2: Tables and charts 79

Annexure3: Comments by PSPCL 129Annexure4: CPRI replies to comments by PSPCL 153

Annexure5: CPRI comments on Discussion points raised by PSPCL 175


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Abbreviations/NomenclatureABT Availability based tariffAC Alternating currentADB Air dried basis (of specifying GCV)

AFB As fired basis (of specifying GCV)C & I Control and instrumentationCA Chemical AnalysisCC Carrying capacityCHP Coal handling plantERC Energy regulatory commissionERP Enterprise resource packageFIFO First in first outFO Furnace oilGCV Gross calorific value (kcal/kg or MJ/kg)

GoI Govt. of IndiaGRN Goods receipt noteH Time period block (hours)HCV Higher calorific or heating value (kcal/kg or MJ/kg)=GCVHGI Hardgrove Index of coalKPI Key performance indicatorsLDO Light diesel oilMax. MaximumMCR Maximum continuous rating of the unitMin. Minimum

PLF Plant load factor (%)POL Penal overloading of wagons beyond their carrying capacityR & M Renovation and modernizationROM Run of mine (open cast mining)RR Railway receiptSAIDI System average interruption duration indexSAIFI System average interruption frequency indexSFC Specific coal consumption (kg/kWh = t/MWh)SH SuperheaterSHR Station heat rate ((kcal/kWh)

SOC Secondary specific fuel oil consumption (ml/kWh)SR Steaming rate (t of steam /t of coal)SSC Specific steam consumption (kcal/kWh=t/MWhT Temperature (0C)TL Transit lossTPS Thermal power stationUHR Unit heat rate (kcal/kWh)v Velocity (m/s)Greek letters Difference

Efficiency (dimensionless or %)


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2

14. To check more precisely the methodology regarding computation of cost offuel being passed on to the consumers as an uncontrollable

1.2 Experimental work

The field work of the performance tests and measurements was carried out as perscope during February 2012. The observations, results of study and discussions aregiven in the following sections.

2.0 RECORDING, SAMPLING, REPORTING,VERIFICATION AND ACCOUNTING OF FUEL- OVERALLPROCESS, KEY CONSTRAINTS AND ASSESSMENT OFEFFECTIVENESS

2.1 Overall process

2.1.1 Coal

The overall process is described in detail in each of the following sections.

Recommendation: For the process of sampling, recording of quantity,determination of fuel quality (GCV) a committee may be formed composed of senior

level officers at the level of SE from Operations, Maintenance, Efficiency and Fuelalong with Chief Chemists who will supervise, perform random quality checks andmonitor the entire process of receipt and reporting of coal quality and quantityreceived and consumed in the TPS.

2.1.2 Fuel oil

The fuel oil receipt quantity is measured at the TPS end and compared with the RR.

2.2 Recording (quantity)

2.2.1 Coal

The present method of measurement of transit loss is as follows:

Transit Loss = [Net RR (railway receipt) WeightNet TPS Weight]

Net TPS Weight = [Gross WeightTare Weight]

The wagon gross weights are determined through in-motion weigh bridges by

passing the rake at a speed of 10-15 km/h over the weigh bridge. The weight ofthe each loaded wagon which passes on the track is automatically recorded in


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5

motion weigh bridge. Generally the stencil weight is the accepted mode oftare weight. For the case of sending end dip measurement this is notrelevant.

v. The net weight of the fuel oil is determined by deducting the tare weight

of individual wagon from the gross weight recorded in the in-motion weighbridge. The sum total of the net weights of all the wagons gives theweight of the rake for which payments are made.

vi. The Fuel Section tallies the TPS net weight with the RR weight anddetermines the payment on the basis of the receiving end weight only. Inthe event of dip level measurement, the Fuel section tallies the sendingend dip levels of individual wagons with corresponding dip levels taken atthe TPS and determines the basis for payment at the receiving end volumeonly.

The instrumentation for measurement of oil receipt and consumption is adequate.The tank level measurement has an accuracy of 0.5 %.

Observation:The system of measuring the receipt oil is in order in all the threestations where the dip level of the individual tankers is taken. In the case of GNDTP,the oil level of the receiving tank in the TPS is taken.

Recommendation: It is recommended that in GNDTP also, the wagon dip levelmeasurement may be taken as the primary measurement for recording receipt

quantity.

2.3 Sampling

2.3.1 Coal

Receipt coal:The process for sampling is given in Tables 1 & 2 of Annex 2. It must beremembered at a rake consists of around 4000-4500 tonnes of coal so the samplesize must be 350 kg drawn from at least 15 different wagons. The observations and

recommendations on the process are as follows:

Bunkered coal:The process for sampling is given in Tables 3 of Annex 2. The observations andrecommendations on the process are as follows:

Recommendation: Sampling: The sampling of both receipt coal as well asbunkered coal at any time of the day must be witnessed by an officer level personsince the sample determines the basis for determining station heat rate andindirectly relates the quantity of consumption. Periodic surprise checks by committeemembers are essential. The random table details of which wagon to take the


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7

2.4.2 Fuel oil

The oil receipt basis data is recorded, as and when the oil rake arrives. TheRR and the receipt records are used as basis for payment. Then the GRN of

the quantity received is made and the quantity is taken on the stock card. The dip isrecorded in dip register. The copies of the receipt records go to the fuel cellfrom where it will go the Accounts for payment.

2.5 Consumption calculation & Verification of stocks

2.5.1 Coal

The daily consumption of coal is recorded through belt weighers in LehraMohabat. In other stations, the belt weighers are not present for daily

consumption measurement and the same is arrived at based on assumedvalue of coal factor (specific coal consumption) multiplied by the energygenerated.

Coal consumption = [Specific coal consumption, kg/kWh] x [Generation, kWh]

= [{Heat rate, kcal/kWh}/{GCV, kcal/kg}] x [Generation, kWh]

In the absence of coal measurements to individual units, it is not possible to knowthe specific fuel consumption which is the basis for the heat consumption of the unit.

The present system is highly inadequate and not sufficiently sensitive to unitperformance. Hence, the estimated specific coal consumption does not reflect on therealistic coal consumption of any particular unit in question. The present methodgives only station coal consumption and does not give sensitivity to unit coalconsumption.

The monthly coal consumption is arrived at by the sum total of the dailyconsumption. The quarterly or annual consumption is arrived at by taking thesum of the monthly consumptions and tallying it with the physical verified coalstock on hand.

Physical verification of coal in the coal storage yard is done with dumpy levelmethod by civil department at the end of each month and quarterly byTechnical Audit, PSPCL, Patiala. The coal stock is generally verified quarterly.

Recommendation: Coal stock verification and reconciliation may be doneonce a month.

Recommendation: The coal stock verification must be in the presence of

the committee of senior level officers as indicated in Section 2.1.1.


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8

Recommendation: Belt weighers: Belt weighers may be installed for allconveyors feeding to all units before entrance to the bunkers so that unit wise coalconsumption can be arrived at. The unit wise coal consumption through beltweighers is present only in GHTP, Lehra Mohabat. The same may be installed in allunits of GGSSTP, Ropar and in all units of GNDTP, Bhatinda. Belt weighers have

emerged as a reliable and cost effective method of coal measurement. The signalsfrom the belt weighers give coal flow in t/h and total flow and are of the re-settingtype. The coal flow from the coal yard to the units (total composite flow) can bemeasured through these conveyors. In addition to the total flow to the units fromthe belt weighers, the unit wise consumption is required to be monitored to providethe unit wise performance. Microprocessor based interfaces for belt weighers needsto be installed or multiple time totalizers. The specification of belt weighters isgiven in Table 4 (see Annex 2).

Multiple Time totalizers: The belt weighers does not give unit specific coal

measurement which is essential for accounting purposes. The arrangement for unitwise coal consumption is essential. This is possible by providing a system ofmonitoring the time elapsed by a belt over a given bunker. Unit wise bunkered coaldata can be available after installation of timed totalized belt weighers.

Bunker level measurement: Coal level in the bunker is presently recordedmanually. It is a process wherein the bunker levels are conveyed by manualobservation from the bunker area to the Coal handling plant and from there it isrelayed to the control room over telephone. This manual information relay system isobsolete and does not give quantitative data on the bunker level. Further it gives

data only when the persons inspects it and does not give the exact height of the coalstack. Microwave or Ultrasonic bunker level monitoring systemwith digitaldata output, communication of data to central server or control room.

On line coal energy management: Software is to be in place for onlinecoal energy management in the plant. The software must input data from thevarious field instruments for coal receipt from various sources and coal consumptionat various bunkers. This must also compute the coal consumption, heatconsumption, heat rate, etc., at various points, on line.

2.5.2 Fuel oil

The daily consumption of oil is calculated from the dip data for all the units and atthe end of month total oil consumption & balances are recorded.

Physical verification of oil in the oil storage yard is done quarterly by takingdip of oil manually by Technical Audit, PSPCL, Patiala, whereas daily oilconsumption is measured by taking dip of oils tanks which are in service bytaking dip manually by fuel cell and operation circle. Since the measurementprocess is based on the dip level the possibilities of errors in the stock

calculations are low.


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Observation:The oil stock verification at quarterly intervals is in order.

2.6 Auditing

2.6.1 Coal

The auditing of the coal quantity on the basis of bills for payments, is being done byinternal auditors and accounts. The audit is also be done by external auditors. Adetailed study of the process indicates that it is in order.

2.6.2 Fuel oil

The auditing of the fuel oil quantity on the basis of bills for payments, is being doneby internal auditors and accounts in the same manner as for coal. The audit is alsobe done by external auditors. A detailed study of the process from the receipt til l thereporting indicates that it is in order.

2.7 Reporting (quantity)

2.7.1 Coal

The coal consumption reported to the Regulatory Commission is on the basis of theconsumption which is the receipt minus the stock on hand (physical verification).The coal consumption is on the basis of receipts minus the stock on hand which isarrived at from the verification report of Technical audit from Patiala. This coalconsumption is basis for computation of the heat rate. Audit of the process indicatesthat the process is in order so far as the accounting of the numbers or quantities isconcerned.

Observation: The stock on hand and the consumption calculations must beessentially be on a monthly basis and any reconciliation must be on a monthly basisonly and not on a quarterly basis.

Recommendation: The reporting of the reconciled consumption must be on amonthly basis. Once the monthly stock and consumption is reconciled and arrived atit must be final and there must be no further reconciliation on a quarterly, bi-annually or yearly basis.

2.7.2 Fuel oil

The fuel oil consumption reported to the Regulatory Commission is on the basis ofthe consumption which is the receipt minus the stock on hand (physical verification).

The fuel oil consumption is on the basis of receipts minus the stock on hand is whichis arrived at from the verification report of Technical audit from Patiala. Audit of the


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process indicates that the process is in order. Since all measurements are based ondip levels which are accurate the margin for erroneous reporting is low.

Recommendation: The reporting of the reconciled consumption must be on amonthly basis.

3.0 METHOD OF TESTING OF COAL & FUEL OIL ATSITE, BASIS FOR RELEASE OF PAYMENT & BASIS FORWORKING OUT THE STATION HEAT RATE

3.1 Significance of the heating value of coal & oil

The significance of the heating value in the context of coal consumption is as

follows:

generatedEnergy

GCVxnconsumptioCoalRateHeatStation

The heating value determines the coal consumption as well as the station heat rate.The measurement of GCV is as important as the coal quantity measurement as itdirectly affects the coal consumption and generation cost on account of coal.

In the TPS context three heating values are of importance:i. UHV: Useful heating value -a commercial heating value for payment

purposes.ii. GCV: Gross heating value of the received coal sampled at the point of

unloading.iii. GCV: Gross heating value of the coal fed into the boiler and sampled

either at the conveyor belt to the bunker or at the coal feeder.

Accordingly, the heating value of coal is generally determined in most utilities for thefollowing three cases:

i. UHV (kcal/kg) of Coal received from collieries:rake wise, colliery wise,

weekly and month wise data

ii. GCV (receipt coal) (kcal/kg) of Coal received from collieries: rakewise, colliery wise, weekly and month wise data.

iii. GCV (fired coal) (kcal/kg) of Coal being used in the units: shift wise,unit wise, stage wise and month wise data

For payment purposes a term called as Useful heating value (UHV) is used. For thepurpose of determining the heat content in the coal, the GCV is used. GCV is a

nomenclature which is equivalent of Higher heating value, Gross heating value andHigher calorific value.


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UHV and GCV though connected are different. UHV is determined by measuring theash and moisture contents. GCV is determined by proximate analysis as well as bybomb calorimeter. GCV is higher than UHV as per the data given by the coalMinistry.

Coals received from collieries are analyzed for their Useful heating value (UHV), afactor coined by GoI, which is the basis for payments to the coal supplying agencies.The UHV & GCV as per GoI is given in Table 5 and the band width of variationpermissible under a given UHV & GCV grade is given in Table 6.

In the TPS context three interconnected heating values are of importance:

i. UHV only for commercial payments and to reconcile sending end andreceiving end heating rate. The receiving end UHV must not be lower

than 150 kcal/kg of the sending end UHV.

ii. GCV (air dried basis) of the receipt coal at the coal yard and sampledat the receiving point. This is connected to the UHV by the formulagiven by Coal ministry.

GCV = A0+ (A1x UHV)

Formula AO A1 Reference1 2111 0.6812 [1]

2 2437.5 0.6679 [2]3 1977.5 0.5901 [3]

In the present case the average of the three values is taken.

iii. GCV (air dried basis) of the coal fired into the bunkers and finally intothe boilers. This is sampled at the conveyor belts just prior to thebunker or at the coal feeder.

The GCV of both receipt coal as well as bunkered coal can be either represented as

eitherAir dried basis (ADB) where the GCV is determined by drying the sample inair or as As fired basis (AFB) wherein the moisture effect is subtracted. Thedifferent between the two is around 280-350 kcal/kg and the connection betweenthe two is [4]:

[GCV (ADB)] = -137.32 + 0.9561 [GCV (AFB)]

In the present case both GCVs (receipt and bunkered) are represented as ADBs.

In either of the cases, the magnitude of the difference between the receipt coal GCVand bunkered coal GCV should be within 150 kcal/kg of the receipt coal GCV. Thedrop or difference between the receipt coal GCV and the bunkered coal GCV


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According to the Draft MoP report Operational Norms for ThermalGeneration Tariff, 1999:

B-1.7 Gross calorific Value or GCV - The heat produced in kCal by completecombustion of one kg. of solid fuel or liquid fuel or one standard cubic metre (Sm 3)

of gaseous fuel, as per IS: 1350 (Part-II) or IS:1448 (P : 6) as the case may be.

Explanation :In case of coal or lignite fuel, the GCV of the fuel as receivedshall be reduced by 100 kcal/kg to arrive at the GCV of the fuel as fired forthe purpose of determination of the fuel consumption.

The bunkered coal GCV can be arrived at by reducing receipt coal GCV by 100kcal/kg or 1 % moisture which works out to 150 kcal/kg.

According to the recent MERC judgment for 2012-2013:3.2.41. As evident from the above Table, the variations in Calorific Value of coal is

significantly higher than the 150 kcal/kg mentioned above, and in some caseshigher than 500 kcal/kg, and therefore, the Commission directs MSPGCLto constitute a Committee to investigate the huge variations in'bunkered' Calorific Value of blended coal and weighted averageCalorific Value of blended coal on 'as received' basis and submit its Reportwith recommendations and action plan to limit such stacking loss to150kcal/kwh within six months from the date of issuing of this Order.

Recommendation: The drop in GCV between the receipt coal and bunkered coalmay be brought down to within 150 kcal/kg. The measurement of receipt coal may

be introduced and compared with GCV of bunkered coal which is already beingmeasured. Both measurements may be made on equilibrated basis and the effect ofsurface moisture may be added at 145 kcal/kg for 1 % by determining the totalmoisture along with the original sample.

After the visit to the three stations, the proposed methods of reduction of coal yardlosses are given in Table 11.

Recommendation:First-in-first out principle must be adopted for receipt coals to

ensure that certain lots do not weather for too long.

Recommendation: The joint sampling provision in the FSA with CIL and othercollieries must be strictly implemented.

Recommendation: Introduction of additional fogging systems at various

locations in the coal yard as well as at the junction towers to avoid spontaneous fires

in coal stacks.

Recommendation:Use coal compactors for compaction of the coal heaps to avoidspontaneous combustion and also to eliminate seepage of water and loss of heatingvalue of the coal. [8]GCV based payment to Coal India: GCV based payment has come into effect.From now onwards the GCV of receipt coal will be available in place of the earlier

UHV. Also, the bandwidth of allowable variation in a grade is reduced as comparedto the earlier grading. The quantity weighted average GCV of the receipt coal need


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to be worked out on monthly basis. Similarly the quantity weighted average of GCVof bunkered coal need to be worked out on monthly basis. The monthly averageGCV of both raw and bunkered coal need to be reported. The infrastructure of GCVmeasurement needs to be improved as per the recommendations given above.

Figures 3-5 gives the effect of reduction in GCV difference on coal consumption forGGSSTP, GNDTP and GHTP respectively.

Figures 6-8 gives the effect of reduction in GCV difference on saving in coal

consumption for GGSSTP, GNDTP and GHTP respectively.

Figures 9-11 gives the effect of reduction in GCV difference on coal cost+freight for

GGSSTP, GNDTP and GHTP respectively.

Figures 12-14 gives the effect of reduction in GCV difference on saving in coal+

freight for GGSSTP, GNDTP and GHTP respectively.

Figures 15-17 gives the effect reduction in GCV difference on energy cost (fuel cost

component) for GGSSTP, GNDTP and GHTP respectively.

Figures 18-20 gives the effect if reduction in GCV difference on energy cost (total

generating cost) for GGSTP, GNDTP and GHTP respectively.

Figures 21-23 gives the effect of reduction in GCV difference on energy cost (saving

in total generating cost) for GGSSTP, GNDTP and GHTP respectively. It can be seenthat the anticipated savings are as follows: GGSSTP: Rs. 213.7187 crores; GNDTP:

Rs. 54.3715 crores and GHTP: Rs. 49.1057 crores, totalling to Rs. 317.196 crores in

all for PSPCL.

3.2 Method of testing fuel quality at site

3.2.1 Coal

Receipt coal: The method of sample preparation from the sample collected at the

coal rake (wagons) is given in Table 12 and the methodology for testing fordetermining UHV is given in Table 13.

Bunkered coal: The method of sample preparation from the sample collected atthe conveyor belt prior to feeding into the bunkers (storage prior to feeding into themills and finally into the boilers) is given in Table 14 and the methodology for testingfor determining GHV is given in Table 15.

The balances (accuracy: 0.1 mg) and ovens (accuracy: 3.0 C) are of therequired accuracy and reliability for determination of UHV and GCV by proximate

analysis. The accuracy of proximate analysis is 0.5 %. The equipment in all stationshave a valid calibration certificate.


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The bomb calorimeter [accuracy: 0.1 % (4 to 5 kcal/kg) with a thermometeraccuracy of 0.0001 C] is of the required accuracy and reliability for determination ofGCV of coal samples. The equipment in all stations has a valid calibration certificate.

Recommendation: The receipt coal GCVmay be determined on equilibrated basis. The total

moisture may also be determined for the same sample and the effect ofmoisture may be added to the receipt coal GCV at the rate of 145 kcal/kg for1% increase in surface moisture.

The bunkered coal GCVmay also be determined on equilibrated basis. Thetotal moisture may also be determined for the same sample and the effect ofmoisture may be added to the bunkered coal GCV at the rate of 145 kcal/kgfor 1 % increase in surface moisture.

The difference between receipt and bunkered coal GCV may be worked out

and minimized to be within 150 kcal/kg.

Recommendation:Periodic surprise checks of witness the GCV determination forboth receipt coal as well as bunkered coal in a bomb calorimeter by committeemembers is essential.

Recommendation:Random samples of both receipt coal as well as bunkered coalor a certain percentage of samples (5 to 10 %) as well as third party testing samplesmay be sent to independent, impartial truly third partly central laboratories whoseresult must be final, such as the following:

Central Institute of Mining & Fuel Research (CIMFR) (formerly CFRI), Nagpur

Central Institute of Mining & Fuel Research (CIMFR) (formerly CFRI),Dhanbad

CPRI, Bangalore

The list of truly neutral third party laboratories in Northern India is given in Table 16.

Observation: The sample preparation equipment in all three stations is notconfirming the BIS. The sample crushers are not crushing the coals of the requiredsize. Sample preparation improvement: Sample preparation must be throughstandard crushing and pulverizing equipment.

Recommendation:It is recommended to go for additional set of sample primaryand secondary crushing equipment including pulverizers.

Recommendation:Presently, the three stations are having only bomb calorimeter.Usually, in many other utilities there are separate bomb calorimeters for Stage 1 &Stage 2. One additional automatic multi-sample bomb calorimeter is recommendedfor each station along with room air conditioners for maintaining the temperaturecontrol of the cooling water.


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3.2.2 Fuel oil

Fuel oil is generally not measured for GCV and the GCV is taken as constant.Furnace oil GCV is taken as 10,000 kcal/kg or 9,600 kcal/l. The density of fuel oil istaken as 0.88 kg/m3.

The GCV of LDO is given by the following formula:

GCV = 12,400(2100 x d2)

Where d is the density of the oil in kcal/kg. The GCV of LDO works out to 9,300kcal/l. The mix of oil normally used is 72 % Furnace oil and 28 % LDO. The GCV ofthe mixture is taken as 9,500 kcal/l.

Since the contribution of 1 ml/kWh is hardly 9.5 kcal, the process is in order.

3.3 Release of payments

The release of payment is as follows:i. For Coal India Ltd., advance payment is made and settled against quality.

There is no settlement issue regarding the quantity.ii. For washeries payment is made based on quantity; and ash, moisture content

determined at the TPS end and not on UHV.iii. For captive mines the payment is on the basis of quantity and quality both

determined at the TPS end.

3.4 Basis for working out station heat rate (SHR)

generatedEnergy

GCVxnconsumptioCoalRateHeatStation

Presently the quarterly coal consumption is considered for computation of SHR. Thebunker coal GCV is considered for the SHR. The bunkered coal GCV, presently

reported is independent of the receipt coal GCV which is the basis for payment forthe coal purchased. The receipt coal GCV is not reported to the RegulatoryCommission. The bunkered coal GCV is related to the receipt coal GCV. Generally thebunkered coal GCV must not be lower than 150 kcal/kg of the receipt coal GCV totake care of the stacking loss.

Recommendation:The receipt coal GCV which is the basis for payments must alsobe a part of returns filed to Regulatory Commission. The computation of SHR canstill be on the basis of bunkered coal GCV but this value must not deviate beyond150 kcal/kg from the receipt coal GCV value.


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Recommendation: The computation of SHR must be on daily basis and themonthly value must be based on daily average. The annual value must be based onmonthly average. The reporting period for SHR must be monthly.

4.0 PAYMENTS ASSOCIATED WITH FUEL RELATEDCOSTS, REASONS FOR HIGH LOSS

4.1 Fuel cost

The break up of percentage of the sourcing of coal is given in Table 17. It is seenthat the major percentage coal is from Panem captive mines (60 % at GGSSTP, 79% at GHTP and 90 % at GNDTP).

Figure 24-26 gives the percentage of coal receipt from various sources for 2011-

2012.The overall cost of generating power is given in Table 18 for the three stations. It isseen that the major cost of generation (80-86 %) is accounted for by coal.

The unit fuel cost (Rs./t, Paise/kWh) is given in Table 19 for the three stations. Itcan be seen that cost of coal and freight is the major cost accounting for 97-99 % ofthe cost.

The primary cost is the fuel cost. Since the Coal India billing is on the basis of thesending end quantity and quality, the receiving end quality and quantity is not

connected with the payment. In the case of the washeries and captive mines thereceiving end quantity as well as quality are of importance for the payments.

The unit cost of coal can be compared with the index of Rs./Gcal based on thereceipt coal GCV. This is a more appropriate index because coal is valued based onthe heat it generate rather than on their mass basis.

The source wise cost of coal, cost of fuel (Rs./t) and cost of heat from coal(Rs./Gcal) (based on receipt coal GCV) is given in Table 20. The values for 2011-12are reproduced here:

GGSSTP

GCV(kcal/kg)

Coalcost

(Rs./t)

Freightcost

(Rs./t)

Landed cost(Rs./t)

Cost ofEnergy

(Rs./Gcal)

ARYAN 4639.7 1664.2 2051.8 (*) 3716.1 800.9

CCL 4617.2 1422.2 1463.6 2885.8 625.0

MDL4712.0 1777.2 1820.2 3597.4 763.4

PANEM4979.1 1227.4 1662.7 2890.2 580.5

SECL 5393.4 2183.3 1333.6 3516.8 652.1


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GHTP

GCV(kcal/kg)

Coalcost

(Rs./t)

Freightcost

(Rs./t)

Landed cost(Rs./t)

Cost ofEnergy

(Rs./Gcal)

CCL 4632.8 1386.1 1496.1 2882.2 622.5

MONNET4695.6 1630.0 1884.1 (*) 3514.1 748.4

PANNAM4785.7 1073.7 1603.6 2677.2 559.4

DVT IN 4679.6 1166.0 1606.5 2772.5 588.4

GRANDTOTAL

4747.4 1135.0 101135.0 2850.4 596.4

GNDTP

GCV(kcal/kg)

Coalcost

(Rs./t)

Freightcost

(Rs./t)

Landed cost(Rs./t)

Cost ofEnergy

(Rs./Gcal)

CCL 4561.4 1191.2 1665.2 2856.4 626.0

PANNEM 4957.9 1171.0 1616.9 2788.0 562.0

MONNET 4670.2 1656.7 2053.2 (*) 3710.0 796.4

GRANDTOTAL

4929.5 1204.3 1613.8 2818.1 570.3

(*) The cost is on the basis of the original coal supplied from coal India for a unitquantity of washed coal and not actual freight cost.

The cost of Pannem mines is around 7-10 % cheaper than CCCL coal. This is in linewith the discount of 12 % offered by Pannem.

It can be seen that on the basis of original coal supplied, the cost based on Rs./Gcalform Monnet and ACBL washed coal is 22-28 % higher than the raw coal. Thehigh cost for the coal from the washeries is that their increase in GCV due towashing process is not commensurate with the yield. In other words, the yield of 80% must give coals of much higher GCV or in the converse, for the present GCV theyield must be much higher (say 87 %).Recommendation: An independent third party validation of the washeryenergetics to map the yield as a function of the input raw coal quality and washedcoal quality is required.

At present, the washing charges (Rs. 120/tonne) are not being paid to the washeriesbecause of the PG test is not over. However, in the long run washing charges areapplicable. The cost would then be upgraded further by 4-5 % as shown in Table 21.

The total annual fuel cost (Rs. Cr) is given in Table 22 for the three stations.

Comparative values for achieved parameters of neighboring TPS are as follows:


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Sl.No.

StationTL

(%)SHR

(kcal/kWh)

Cost ofCoal

(Rs./kWh)

Cost ofenergy

(Rs./Gcal)

1 Kota TPS, Rajasthan 2605 1.7 652.62 SSTPS, Rajasthan 2500 2.1 828.8

3Panipat(Units 5-8)

5.26 2740 2.28 832.1

4 Yamunanagar 9.09 2500 1.97 788.0

5 Hissar 6.96 2846 1.99 699.2

6 Torrent, Gujarat 1.41 2500 1.83 732.0

7GSPGCL, all TPS above 210

MW

1.5 2500 1.73 692.0

Recommendation: The coal cost (landed price of coal at the TPS) can be evaluatedin three formats:

Rs. /t = (coal cost + freight)/receipt weight Rs./kWh = (coal cost + freight)/energy generated Rs./Gcal = (coal cost + freight)/(receipt weight x GCV of receipt coal)

converted in Gcal to have it in comparable number values.

While the cost per t is sensitive to the purchase price, the cost per Gcal is also

sensitive to the quantum of heat in the coal. Suppose the cost/t may be low buycost/Gcal may be high because heat content in receipt coal may be low.

4.2 Freight

Freight is an unavoidable cost. The freight is based on the actual km recorded andthe rate fixed. The distances between the coal mines and washeries to GHTP are asfollows:

From Panem mines 1743 km From Monnet washeries 1482 km

From various CIL mines varies between 1500-1700 km

The process of charging freight is in order.

4.3 Transit loss (TL)

Basic causes of TL:TL in the case of PSPCL is caused because of the following:

i. Differences between the loading end and unloading end weighments.Presently the accuracy of the weighments are 0.5 %. The basic unit of

weighment is the wagon which contains 70 t of coal. Assuming 0.5 %would mean an inaccuracy of 0.35 t. assuming the weigh bridges are


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unbiased then the positive (shortage) and negative (excess) errors willcancel out but for the purpose of computation a 0.5 % shortage can beexpected from this process which works out to 350 kg.

ii. Moisture loss from the wagon will be only on the surface of the wagon. Thewagon dimensions are 9.78 m x 3.20 m for all wagons as only the depth

varies. Assuming the moisture loss of a maximum of 1 % occurs up to adepth of 0.3 m of coal, bulk density of uncrushed coal is 1118 kg/m 3, theweight loss is 107 kg per wagon assuming that the time of transfer isaround 2-3 days.

iii. Coal fall out from sides and windage loss due to fines blowing off: amaximum of 2 sacks of 35 kg , i.e., 70 kg per wagon.

iv. Removal of coal from unauthorized elements at the peripheral areas of minesand at certain stops: This cannot be quantified. The help of Railway policeforces must be taken to ensure that these incidences are minimized.

Thus the total TL for technical reasons is around 350+107+70 = 527 kg out of 70 twhich works out to 0.75 %.

Preamble:

1. The transit loss (TL) fixed by CERC is 0.3 for pit head TPS and 0.8 % for non-

pit head TPS for coals sourced from Coal India Ltd. where the weight for

payment is taken at the sending end (mine end) and not at the receiving end

(TPS end). This is applicable for both raw coal as well as washed coal where

there higher moisture.

2. In the case of pit head stations allotted TL is 0.3 % whether it is transported

by buckets in aerial ropeway (merry go round system), trucks or railways. The

mode of transportation is not important in deciding the TL.

3. Some ERCs (Energy Regulatory Commissions) such as Karnataka, no stand

alone TL is being allowed but instead a transit cum stacking loss (weight loss

at TPS site) of 0.8 % is allowed for all receipt coal (entire total coal received)

on weight basis. This is applicable to all coals received including washed andimported. As per CERC norms, transit loss is 0.8 % for non-pit head and 0.3 %

for pit head stations, no separate stacking loss is being allowed. When almost

total coal is supplied by CIL, this model is applicable where the loss is taken on

notional basis on not on actual TL.

4. It has been established that allotting a lower allowable TL has a positive

impact on reducing enroute thefts or unaccounted removal. It has also been

established that TL is independent of the distance traversed between the mine

and the TPS [8] or a linear relationship between the distance over which coalis transported and the transit loss levels cannot be empirically established. In


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of coal is entirely to the account of the supplier. The shortage of coal must not

be loaded in the fuel cost of the TPS in such cases as it is factored in the

payment terms of the suppliers contract. TL must be borne by the supplier.

10.TL is not applicable for coal from imported sources and captive mines.Payment for Panem captive mines is for weight actually received at the TPS

and hence transit loss is not calculated. In the case of Monnet Washed coal,

presently the shortages are considered under TL.

11.In the case of washed coal, TL from mine to washery is in the scope of PSPCL.

Presently, for Monnet & ACBL (Aryan) it is chargeable/loadable to the supplier

because the telemetering system is not installed and Performance guarantee

test is not over.

12.In the case of washed coal, TL between the washery and TPS is in the scope

of TPS. The telemetering system as indicated in the FSA is yet to be installed

at the washery site. This involves installation of in-motion weighbridges or raw

coal and beneficiated coal with facility for telemetering the data at PSPCL.

Presently, this facility is not operational. However, TL is in the scope of the

TPS in the case of washeries after the telemetering system becomes

operational. The TL needs to be authenticated by tamper proof weighting

systems of raw coal receipt and washed coal dispatch to PSPCL from the

washery.

13.In the case of PSPCL major coal supply of over 80 % is sourced from captive

mines and washeries. Hence the TL is presently applicable only to 20 % of the

coal sources from CIL.

14.The TL control is already in the scope of the Liaison agent for raw coal only. In

the case of washed coals, services of Liasion agent are not used presently.

The Liasion agents scope is restricted to CIL coal only. The Liasion agents

payment under ideal conditions is Rs. 53/t (maximum) for the full quantity ofthe rake. The payment to the Liaison agent is linked with coal shortage as

follows:

Sl.No.

Rake wise percentageshortage received

Charges Rs./t for totalquantity received in a rake

1 Shortage 1.5 % to 2.0 % 13.512 Shortage 1.0 % to 1.5 % 27.033 Shortage 1.0 % to 0.5 % 40.544 Shortage below 0.5 % 45.05


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three years) as the TL has continued unabated and has caused differences of

opinions regarding the fixation of TL [10].

21.Many states like Maharashtra, Gujarat and Karnataka which have transit

distances on par with Punjab have adopted a 0.8 % TL norm in tune withcentral norms. Other states are converging to the 0.8 % norms.

22.Recommendation:Considering the above facts it is recommended to reduce

TL to CERC norms of 0.8 % for CIL & Washed coal. In the case of washed

coal it may be ensured that washed coal is brought to equilibrium with respect

to moisture before being loaded onto the rakes. Coals with high moisture

loaded onto wagons likely to give rise to some weight loss in transit must be

stabilized before loading. Also, since the majority of the coal (60-90 %) is

coming from Penam, the 0.8 % TL will be only for CIL coals.

Figures 45 and 47 gives the cost saving from reduction in transit loss for GGSSTP

and GHTP respectively.

Figures 46 and 48 gives the saving in fuel cost from reduction in transit loss for

GGSSTP and GHTP respectively.

4.4 Coal handling contract charges

There are in order.

4.5 Demmurages

Premable:

The demmurages are on account of both controllable and uncontrollable causes:

Uncontrollable causesare: bunching of rakes, i.e., arrival of multiple rakes at one point of time is

resulting in bottlenecking in the wagon tippling process.

Difficulties in unloading of wet coal during rainy season and in dense fog. Unforeseen outages like breakdown of coal yard equipment (shunter, wagontippler, coal conveyor, etc.) derailment of wagon at the wagon tippler.

Controllable causesare: Positioning of wagons- shunter or mechanical positioning Mode of unloading of stones- manual or mechanical Disposal rate of the coal feeder- speed and type of feeder-apron or vibratory

1. The demmurages incurred by the stations is given in Table 26. The highestdemmurages are paid by GGSSTP followed by GNDTP. It is low for GHTP.

Figure 49 gives the demmurages for the three TPS.


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2. The cost upgradation due to demmurges on the cost of generation for 2011-

12 is as follows:

TPS Total (Rs. Lakhs) Rs./ t Percentage( %) p/kWh

GGSSTP 330.36 7.09 0.18 0.45GHTP 39.49 0.89 0.02 0.03

GNDTP 53.71 3.83 0.13 0.29Variations between Table 26 & Table 19 are because of account process of indicatingactual payments only. Payments in dispute or in suspense are not indicated in Table19. Table 26 is the actual incurred value (independent of payment).

3. Demurrages are meant to induce the TPS to unload the wagons in time. They

provide disincentive to the TPS to retain wagons at site.

4. Earlier (around 10 years back) the CC (carrying capacity) of wagons was 58.6t per wagon. It was gradually upgraded to CC + 10 which comes to 70-71 t.

Earlier the rake capacity which was 3300 t is now 4000 500 t. This implies

that the capacity of a rake is increased by 20 %. In future the wagon

capacities are likely to be increased to 74 tonne wagons with the same planar

dimensions but with increased depth.

5. Earlier the allotted unloading time was 10 h, it is now 7 h for tippling type

wagons (BOX, BOX-N, etc.) while it is 2.5 h for bottom opening wagons

(BOBR). Here again there is a 30 % reduction in time.

6. The railways is making unloading times considerably stringent but practicable.

The TPS has to rise to the occasion with modernization and upgradation

modifications in the unloading infrastructure to ensure that the unloading

happens within the time allotted.

7.A PAC (public accounts committee) report [11] has indicated that waiver of

demurrages by railways for coal supplied to TPS were unjustified.

8.A CAG report [12] indicates that not more than 25 % of the demurrage

amount should be waived in each case and detailed reasons for waiver of 10

% and above of the amount accrued should be recorded in each case. Hence,

once the demurrage is incurred, it is very difficult for the TPS to get waiver

for over 25 % under any circumstance at present.

9.A MoP report [13] has impressed upon all TPS that the only solution to

reduction of demurrages is to improve unloading infrastructure.


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Observations and recommendations:

10.Demurrages are applicable for only for unloading at TPS end. Demurrages at

the loading end of CIL, captive mines and washery is not in the scope of TPS

and not chargeable to PSPCL.

11.In the present case, since the stations are old their infrastructure for

unloading of coal has not kept in tune with the unloading requirement

standards set by the railways as described above.

12.The approximate number of rakes received are:

GGSSTP: 4-5 rakes/dayGNDTP: 1-2 rakes/dayGHTP: 3-4 rakes/day

No. of rakes received/year is as follows:

Sl.No.

TPS 2009-10 2010-11 2011-12

01 GGSSTP, Ropar 1613 1631 135002 GNDTP, Bhatinda 552 364 34803 GHTP Lehra

Mohabbat1246 1158 876

The details of source wise rake receipt are given in Table 27 for the 3 TPS. Figures50-52 give the details of rake receipts for the three TPS.

13.Robust infrastructure is required for unloading and release of wagons on time.

The reduction of demmurages is possible by optimal choice of unloading

equipment [14]. The steps involved in the unloading process are given in

Table 28. Tables 29, 30 give the unloading times in GGSSTP and GNDTP.

Table 31 gives a review of the unloading infrastructure at the three TPS.

14.Recommendation: It was noticed that in all the three TPS wagonpositioning equipment (inhaul-outhaul beetle chargers or side arm chargers)

are either not present or non in working condition and the shunter is used for

the same. Either these may be repaired or side arm chargers may be installed

for all wagon tipplers.

15.Earlier wagon tipplers were designed for 10-12 tipples/h. The design of

wagon tipplers may be reviewed for upgradation. Present day tipplers have a

capacity of 20-30 tips/h (forward speed: 0.5 m/s; backward speed: 0.5 m/s),

repose angle of 37 C and designed weight of 110 t (CC: 70 t + tare weight:20-21 t). The capacity of equipment downstream of wagon tipplers such as


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tippler hoppers, conveyors from the tippler onwards, etc., have a bearing on

the disposal rate of the wagons.

16.Recommendation:Earlier wagon tippler systems were designed for 500 &

1000 t/h to empty a rake in 3 h. Present day systems are available in 1600t/h for faster disposal. The detailed study of wagon tippling systems and coal

conveying may be studied for removal of existing bottlenecks and for

upgradation wherever it is critical.

17.Conveyor capacity from tippler hopper: Choking of coal at the tipplerhopper and at the feeder is also a reason for delay. Some benefit can be gotfrom automatic positioning. But the most critical time or limiting time is theclearing of coal from the tippler hopper. Pan type Apron feeders areuniversally recognized as the feeders to absorb high loads and impacts.

Recommendation: Detailed study and upgradation of coal conveyingsystem especially at GNDTP which is using vibratory feeders.

18.Tracking of coal in transit:Besides weighing of primary resources, viz.,coal, accurately, the bunching of rakes can be managed or minimized byeffective tracking of wagons from their source mine to their destination(power house coal yard). Recommendation: Rail tracking systemthrough GPS or alternative technologies.

19.Recommendations: Grab cranes for removal of stones from the wagon

tippler area is present in Ropar. The same may be installed in Bhatinda andLehra Mohabat.

20.Recommendation: Rotary pneumatic or electrical hammers may beused for crushing coal lumps at the wagon tippler in place of manualhammering.

4.6 Siding charges

The TPS are having their own sidings and these charges are negligible.

4.7 Penal overloading charges (POL)1. Table 32 gives the Source wise incurrence of POL for 3 years. It is seen that

the major POL is on account of Monnet Daniel washeries in GGSSTP & GHTP.In the year 2011, it is abnormally high for Monnet washeries. This is becausethe overloading charge is low compared to coal cost and there is a tendencyto overload for getting a better price per rake.

2. The cost upgradation due to POL on the cost of generation for 2011-12 is as

follows:


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TPS Total (Rs. Lakhs) Rs./ t Percentage (%) p/kWh

GGSSTP 297.20 6.38 0.22 0.40GHTP 171.31 3.92 0.14 0.25

GNDTP 4.48 0.35 0.02 0.004

Variations between Table 32 & Table 19 are because of account process ofindicating actual payments only. Payments in dispute or in suspense are notindicated in Table 19. Table 32 is the actual incurred value (independent ofpayment). POL is very low in GNDTP because the major coal is from Penam.

3. Figures 53-55 give the month wise, source wise POL for the three TPS.

4. Loading is the responsibility of the buyer (TPS) when it is bought from CIL,

wherein the liaisoning agent on behalf of the buyer must take care of correct

weight loaded.

5. In case of washed coal or raw coal from captive mines, it is the responsibility

of the supplier to load the wagon correctly.

6. In case of captive coal from Penam, higher freight charges due to idle freight,

under loading of wagons, overloading of wagons is in the scope of Penam and

POL charges at loading end are not to be paid by PSPCL.

7. In the case of Monnet Washeries, the POL is shared by Monnet & PSPCL in

the ratio of 50:50. Recommendation: Since loading is in the scope of

Monnet, POL may be brought into the scope of Monnet.

8. Inadvert overloading/under loading does occur during filling up of coal in the

mines, However, this must be minimized to a large extent by the vigilance of

the Liasion agent. Liasioning agent must take care of this aspect and ensure

that POL does not go out of order. Presently, Liasion agent is not hired for the

washed coal.

4.8 Commission to liasioning agentsThis is already discussed under TL.

4.9 Payment to railway staff

The payment is at actuals and is in order.

4.10 Coal stock maintenance cost

This is for bulldozers and shunters in the coal yard and is in order.


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4.11 Weigh bridge labour cost

The weigh bridge labour cost is in order.

4.12 Costs associated with stones and non fuel foreignmaterials in coal

1. The volume of stones above 250 mm size, is determined periodically bymaking heaps and the density of 1.473 t/m3 is used as a conversion factor.The joint inspection between officials of TPS and Coal India is undertaken forseeking credit to stones. Presently, the stones are not being sold and arebeing used for in-house purposes. This is a good practice.

2. Table 33 gives stones receipt from CIL coal for 3 years. It can be seen thatthe % of stones is high in GGSSTP (1.2-1.8 % of the receipt coal) while it isnormal at GNDTP (0.1 %). In GHTP (0.4 %) it is slightly high.

3. The cost associated with stones in Rs. 4.28 cr in 2011-12 while it is Rs. 75 Lin GNDTP & Rs. 34 L in GHTP (please refer to Table Nos. 19-1,2,3 in Annex2). The cost upgradation due to stones on the cost of generation for 2011-12is as follows:

TPS Total (Rs. Lakhs) Rs./ t Percentage( %) p/kWhGGSSTP 428.074 9.20 0.31 0.58

GHTP 619.960 14.17 0.49 0.87GNDTP 75.425 5.32 0.18 0.40

Variations between Table 33 & Table 19 are because of account process ofindicating actual receipts only.

4. Our study of stone from other stations indicates that average stones expectedfrom CIL is between 0.1 to 0.25 % of the total receipt quantity of a rake.This works out to Rs. 0.3 lakhs/rake. Stone above this percentages are notnormally encountered and the issue must be taken up with the collieries to

reduce the same.

5. Recommendation: Frequent visits and inspections at the colliery loadingend is essential to minimize the receipt of stones.

6. The cost of stones is being recovered or refunded by Coal India Ltd. , butthere is an issue with CIL about the stones originating from the washeriesand captive mines.

7. Recommendation:Random sampling of rakes from washeries and captivemines in the presence of CIL officials may be undertaken to sort out the issuewith CIL and convince them that stones are from CIL.


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8. Table 34 gives the details of generation of rejects (very low grade coal, stoneparticles emanating from the mill reject gate) which are generally sold to brickkilns, etc., as source of thermal energy. At GGSSTP it is around 0.1 to 0.2 %while at GHTP it is 0.03 to 0.07 % of the receipt coal. The values are normalsince they are below 0.5 %.

Figure 56 give the cost saving from reduction in stones for GGSSTP, Roopnagar.Figure 57 give the fuel cost for reduction in stones for GGSSTP, Roopnagar.

4.13 Status of rebates offered by railways or otheragencies

At present the system of offering rebates is made away with by the Railways. Thissystem is not in vogue at present.

5.0 STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

5.1 FSA with Coal India Ltd (CIL)

The FSA with Coal India Ltd. is a standard agreement of CIL.

The FSA with coal Indian defines the following:

Equilibrated Basis means determination/computation of various qualityparameters such as but not limited to ash, volatile matter, fixed carbon, GrossCalorific Value etc. expressed at Equilibrated Moisture level determined at 60%relative humidity (RH) and 40 degree Celsius (C).

Equilibrated Moisture means moisture content, as determined afterequilibrating at 60% relative humidity (RH) and 40 degree Celsius as per therelevant provisions (relating to determination of equilibrated moisture at 60% RHand 40 degree Celsius) of BIS 1350 of 1959 or amendment thereof.

Surface Moisturemeans the moisture content present in Coal that is derived asthe difference between Total Moisture and Equilibrated Moisture, and expressed inpercentage terms.

Total Moisturemeans the total moisture content (including surface moisture)expressed as percentage present in Coal and determined on as delivered basis inpursuance to IS.

The FSA has a provision for adjustment of quality or grade as follows:

Gross Calorific Value or GCV means the heat value determined onEquilibrated Basis through a Bomb Calorimeter in accordance with to the


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procedure laid down in IS:1350 (Pat- II) 1970:

1.6 PREPARATION OF MANUALLY COLLECTED SAMPLES:

1.6.1 The Gross Sample collected will be divided into two portions. One portion

(one fourth of the Gross Sample) called Part-1 will be used for analysisof Total Moisture and t he other portion (three fourth of the GrossSample) called Part-2 for Proximate Analysis and determination of UHV onEquilibrated basis.

11.2 Adjustment for analyzed quality/Grade

11.2.1 The bills with regard to adjustment for quality, as determined underClause 4.7, shall be supported by relevant documents in respect of the

analysis carried out of the following parameters:

a) Total Moisture (%)b) Equilibrated Moisture (%)c) Ash (%)d) Volatile Matter (%)e) GCV (kcal/Kg)

Presently, according to PSPCL, the consideration for surface moisture is not beingfactored into the GCV and only being given concession in weight in case the surface

moisture exceeds the inherent moisture by 7 %. Recommendation: Theinclusion of surface moisture in the GCV computation may be taken up atappropriate forum. The GCV on as received basis is a better representationof the heat content rather than the moisture free basis.

Recommendation:The joint witness of weighment and quality determination atthe sending end must be fully utilized for ensuring that quality and quantity are inorder.

5.2 FSA with captive mines (Panem)

1. Payment for coal is as per prevailing BCCL price with a discount factor as

follows:

Grade of coal Discount factor % ofprevailing BCCL coal price

Remarks

A 38B 33C 19D 15

E 12F 19 Non-conforming


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2.Acceptance grades are Coal India UHV gradation A to E.

3. Non confirming coal but accepted by TPS is as follows:

3.1 F grade coal or grade slip of E grade coal: F grade coal up to 5 % ofthe total quantity in a quarter will be accepted at a discount factor of

19% of the BCCL price.

3.2 Moisture in coal more than 4 % over and above the equilibrium

moisture (inherent moisture). For every 1 % increase in moisture over

4 % above equilibrium moisture, 1.5 % of the total cost will be

deducted.

4. Payment is for weight actually received at the TPS and hence transit loss is

not applicable.

5. Contract price is for quality and quantity at the delivery point, i.e., TPS end.

6. Higher freight charges due to idle freight, under loading of wagons,

overloading of wagons is in the scope of the supplier and charges are not to

be paid by PSPCL.

7. Loading of wagons and loading risks like theft of wagon parts, including

penal overloading & demurrages at mine end is in the suppliersprice. Only normal freight is payable by PSPCL.

8. Unloading charges, unloading risks and demurrages at the TPS are in the

scope of PSPCL.

Observations & Recommendations:

1. The FSA is in order.

2. Recommendation:One of the major factors involved in the payment to

Panem is the testing of coal samples at the TPS. Hence, extra care must

be exercised in sampling and measurement of receipt coal quality as it

seriously impacts the fuel price.


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5.3 FSA with coal washeries (Monnet Daniel,ACBL)

Preamble:

1. In a washery process the extraneous mineral matter (like clay and sand andstones) which results from open cast mining is reduced. The inherent bound

ash which is an integral part of the coal particle or coal lump is not separated

from the coal and will be associated with the coal particle until it is burnt and

converted into ash. The separation between coal and ash takes place only

during the combustion process (even though there are costly chemical

processes for extracting ash which is not relevant to the present process).

The washery process, therefore only leads to reduction in extraneous mineral

matter which has got mixed in the coal volume during the open cast mining

processes using bull dozers and material handling equipment.

2. Clean coal technology is a part of Indias integrated energy policy Washeries

are required to be installed to reduce the mineral matter and avoid carrying of

this much and mud which is taken out along with coal in the mines. This

would reduce the transportation cost and provide good coal for combustion in

the power plant. The intangible benefits of pit head beneficiation of coal are

increased PLF due to lower outage rates of boilers, better loading of mills,

reduced milling power, etc..

3. Environmental requirements of GoI [15] stipulates that TPS located

over 1000 km from the pit head (mine) must use coals with ash less

than 34 %.In case of high ash coals a lot of mineral matter which does not

taken part in the combustion will have to be hauled over long distances. To

avoid this washing and beneficiation of coal to reduce the ash content is

suggested as a remedial measure. Thus, the basis for justifying washing is

ash being over 34 % since the transit distance is over 1000 km. In case the

ash is below 34 %, there is no mandatory requirement for washing and the

coal can be directly used.

4. In this line, wet beneficiation process are used for power station coals with

ash in the range of 28-34 % and higher ash contents. The term ash refers to

real ash which comes out when the coal is burnt as well as mineral matter

which gets mixed with coal during the mining process.

5. The ash content of the parent coal supplied to PSPCL for the washing process

for the three years FY 2009-10, 2010-2011 & 2011-12 is respectively 34.90

%, 34.67 %, 34.43 %.


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Analysis of details of FSA:

1. Making available the ROM (run of mine) raw coal to the washery is in the

scope of PSPCL.

2. The receipt transportation, handling, weighment and quality determination for

ROM raw coal to the washery is in the scope of Monnet.

3. PSPCL is to be fully associated with Monnet washeries in the weight and

quality determination at the receiving end of the washery.

4. PSPCL is also to be fully associated with Monnet in the weight and quality

determination of washed/beneficiated coal leaving the washery to TPS at the

loading end.

5. TL from mine to washery is entirely in the scope of Monnet and not

chargeable/loadable to PSPCL. The sending end (mine end) weight from the

mine will be reckoned for the purpose of calculations of coal supplied to the

Washery and not the weight at the Washery end.

6

Documents

Fuel Audit Full Report