Centre directs UP to operationalise Jharkhand coal block after 10-year delay

⚡ Key Financial Takeaways

The Saharpur-Jamarpani block in Dumka, Jharkhand, with over 973 MT reserves, was allotted to UPRVUNL in August 2015 but remains non-operational.

The coal ministry stated that Coal India Ltd (CIL) is currently meeting the entire coal requirement for Uttar Pradesh's thermal power plants.

As of September 15, no UPRVUNL plant was in the critical-stock category, with coal stocks rising to 8.41 lakh tonnes.

The ministry attributed lower generation (48% load factor) to operational and unloading constraints at plants, not coal availability.

14 other captive coal blocks allotted after 2015 have already commenced production, highlighting the specific delay in UP's project.

💡 Why It Matters

The operationalisation of the Saharpur-Jamarpani block is critical for Uttar Pradesh to reduce its dependence on external coal sources and secure a stable, long-term fuel supply for its thermal power plants. The delay has forced the state to rely on Coal India, which may impact cost efficiency and supply security. Furthermore, the identification of unloading constraints highlights operational inefficiencies that need to be resolved to improve power generation capacity.

Centre urges UP to activate delayed coal mine

The Union Ministry of Coal has issued a directive to the Government of Uttar Pradesh to take immediate steps to operationalise the Saharpur-Jamarpani captive coal block located in Dumka district, Jharkhand. The ministry highlighted that despite the block being allotted to the state’s power utility, Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL), in August 2015, no progress has been made towards development in over a decade.

According to a statement released on September 17, the lack of initiative by UPRVUNL has resulted in the state continuing to rely entirely on Coal India Ltd (CIL) for its thermal power plant fuel requirements. The ministry noted that the block holds reserves exceeding 973 million tonnes (MT) and was originally intended to secure long-term fuel supply for the state's power sector.

Coal India meets full demand

The ministry clarified that the current fuel crisis is not due to a shortage of coal at the plant level. As of September 15, none of UPRVUNL’s thermal power plants were classified in the critical-stock category. In fact, coal stocks at these plants increased from 7.25 lakh tonnes on September 1 to 8.41 lakh tonnes by September 15.

Data shared by the ministry indicates that over the past seven days, average daily coal receipts of approximately 0.90 lakh tonnes exceeded average daily consumption of around 0.83 lakh tonnes. CIL has been supplying an average of 17.7 rakes per day to UPRVUNL plants over the last 10 days, with additional supplies offered via road/RCR mode on September 3.

Operational constraints cited

While addressing concerns about power generation, the ministry pointed out that the current-month plant load factor for UPRVUNL’s thermal plants stood at only around 48 percent, despite adequate coal stocks. The ministry stated that this lower generation cannot be attributed to inadequate coal availability.

Instead, the issue was identified as unloading constraints at various UPRVUNL plants. These logistical bottlenecks have led to periodic restrictions on rake placement by the railways, limiting the ability to further augment coal supplies. The Centre advised the state to address these operational constraints and ensure optimal utilisation of the available stock.

Context on captive blocks

The ministry also drew attention to the broader performance of captive coal blocks in the power sector. It noted that 14 other coal blocks allotted for captive use on or after the Saharpur-Jamarpani allotment have already commenced production. This comparison underscores the specific delay associated with the Jharkhand block allotted to Uttar Pradesh.

🏛️ Background & Context

Captive coal blocks are allotted to specific industries, such as power companies, to meet their internal fuel needs. UPRVUNL is the state-owned entity responsible for operating Uttar Pradesh's thermal power plants. The Saharpur-Jamarpani block is located in Dumka district, Jharkhand, and has been allotted since 2015.

👁️ What To Watch Next

Readers should watch for any announcements from the Government of Uttar Pradesh or UPRVUNL regarding the operationalisation timeline of the Saharpur-Jamarpani block. Additionally, monitoring the resolution of unloading constraints at UPRVUNL plants will be key to understanding improvements in power generation and load factors in the coming months.