DA/Fuel Audit Report of CPRI

Annexure- A

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

Report

Submitted to

Punjab State Electricity Regulatory Commission,

Chandigarh

On

Fuel Audit of PSPCL’s Thermal Generating Stations

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

Submitted by

August 2012

ENERGY EFFICIENCY & RENEWABLE ENERGY DIVISION

Central Power Research Institute, Prof. Sir C.V. Raman Road, P.B. No 8066,

Sadashivnagar, Bangalore – 560 080. E-mail: [email protected]

Web-site: http://www.cpri.in

mailto:[email protected]

http://www.cpri.in/

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

Project Summary

01 Title: Fuel audit of PSPCL’s 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, Chandigarh Mob: +91 9815461188

05 Project implementing agency: Central Power Research Institute,

P.B. No. 8066, Sir C.V.Raman Road,

Sadashivanagar Sub-P.O.,

Bangalore-560080

Tel:080-23604682; +91 9448459587 FAX: 080-23604682, 23601213

06 Contact Person (project

implementing 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-560080

Tel: 080-23604682; +91 9448459587

FAX: 080-23604682/23601213

E-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 and recommend

measures related to saving in fuel.

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

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

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

iv. Measure the Gap between billed quality and quantity vis-à-vis actual receipt of coal and oil. Ascertain the loss and assess reasons for high

Tel:080-23604682



losses, if any.

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

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

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

11 Power station: PSPCL’s Thermal Generating Stations

12 Date of conduct of study: GGSSTP, Ropar: 1-3rd February 2012 GNDTP, Bhatinda: 4-6th February 2012

GHTP, Lehra Mohabbat: 7-9th February 2012

Reply to comments: 17th July 2012

Reply to points raised in meeting with PSPCL: 20th July 2012

13 Date of issue of report: 13th Aug 2012

14 Signature of Energy Audit Team

Leader:

15 Signature of the Division Head:


i

EXECUTIVE SUMMARY

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

Review of the measuring methods and points of measurement of GCV of coal.

Reduction in the drop of GCV of bunkered coal vis-à-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 the loading end.

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

Achievable station heat rate The investment and savings are as follows:

Sl. No.

Type of measure Investment

(Rs. In lakhs)

Savings (Rs. Lakhs)

Pay back period

(months)+

01 Improvement in coal quality and quantity measurement processes; measurement of both receipt and bunkered coal at the TPS.

309 GGSSTP 20670 1 month

GNDTP 5410

GHTP 4530

Total 30610

02 Improvement in unloading infrastructure, coal management at the coal yard and reduction of demurrages

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 in receipt coal

nil GGSSTP 368.62 Not applicable since no

investment

GNDTP Stones within limits

GHTP 177.13

Total 545.75

05 Total investment and saving

858 GGSSTP 21371.87 1 month

GNDTP 5437.15

GHTP 4910.57

Grand total 31719.59


ii

Sl.

No.

TPS Saving

Rs. In lakhs

01 GGSSTP 21371.87

02 GNDTP 5437.15

03 GHTP 4910.57

Total 31719.59


iii

The salient areas of interest are discussed in detail as follows:

Reduction in drop of GCV between the receipt and bunkered coal

While the audit of quantities of coal are in order, a drop in heating value is observed between the receipt and bunkered quantity beyond the normal deterioration. The process needs to be improved to minimize the drop in the GCV before it is fired into the boilers. A number of measures have been suggested for the coal yard and for the monitoring process of coal quality to restrict difference is GCVs to within 150 kcal/kg. Some of the measures are:

Measurement process of GCV needs to be modified to introduce uniformity in the processes as follows: Sending end GCV (mine end) is being measured on equilibrated basis

(without surface moisture) and total moisture is being measured. Receipt end GCV (TPS entrance) need to be measured considering

the total moisture by determining GCV on equilibrated basis and adding the effect of surface moisture at the rate of 145 kcal/kg for 1 % surface moisture). This would give the GCV of coal as received.

Bunkered coal GCV (at the bunkering belts) need to be measured considering total moisture by determining the GCV on equilibrated basis and adding the effect of surface moisture (at the rate of 145 kcal/kg for 1 % surface moisture).

In cases where the payment is based on quality measurement at the TPS end only, random and periodic samples need to be sent to third party truly independent labs under committee supervision.

The concept of the fuel basket must be used to report the receipt coal GCVs, i.e., source wise GCV must be provided.

The reporting period for coal consumption and reconciliation of stock must be a month.

Reduction in transit loss Considering the national trends in transit loss, the TL fixed for stations with similar transit distances, high GCV of coal by almost 1200-1500 kcal/kg as compared to other states a TL of 0.8 % is recommend for CIL coals excluding Penam. Since the stations are getting majority of coals 60-90 % from Penam, TL is applicable only to CIL coals and washed coals.

In the case of washed coals, TL on account of moisture loss must be to the account of Washery since they have to load coals after equilibrium is reached.

The transit loss may be fully included in the scope of the liasoning agent by linking it up with the coal cost (Rs. 30/t for 1 full rake of 4000 t for 1 % loss).


iv

Reduction in demmurages through improved unloading infrastructure

Upgrading coal handling capacity of tipplers and conveyors; and mechanical equipment for removal of stones could bring down dummerages. The unloading infrastructure at the three stations needs to be comprehensively reviewed to keep in tune with the increasing of the wagon capacity by 20 % (with further increase to 74 t wagon capacity by railways in the offing) as well as reduction in unloading time by 30 % (7 h as compared to 10 h earlier). The upgradation 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 or purchase a new. Reduction in POL charges

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

Reduction in quantities of stones received The percentage of stones at GGSSTP is on the higher side (1.2-1.8 %) and steps need 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 presently being computed on equilibrated basis which considers only inherent moisture) of the sending end may be taken up with the appropriate authorities. Contracts with washeries

The overall energetics of the washed coal vis-à-vis the benefits are presently not economical. Presently the washed coal is expensive by almost 22-28 % as compared to the raw coal. The washed coal must be cost economical in addition to the environmental obligation to not transport coal above 34 %. A validation of the process 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. In the case of Dipika washery of SECL, the band width of UHV of F grade is varying between 2400 to 3600 kcal/kg, implying that there is almost 1200 kcal/kg difference between the band limits of the F grade.


v

The sampling frequency of the coal lifted by washeries must be on the basis of similar to rake sampling, i.e., around 350 kg per 4500 tonnes, i.e., 80 ppm (parts per million). Hence, for all coal lifted by the washery the GCV must be specified to verify the overall energetics of the process. Station heat rate

The GGSSTP units have already achieved 2563.75 kcal/kWh for the FY 2011-12. The operating at SHR of near 2500 kcal/kWh by GGSSTP station is achievable during 2012-2013 with operational optimization and a shifting a few medium term measures to immediate. GNDTP has already achieved a SHR of 2842.79 kcal/kWh during 2011-2012. GNDTP is capable of achieving a SHR of 2825 kcal/kWh during 2012-2013 with operational implementation and a few measures like replacement of cooling tower fills, etc.

General

The quantities and quality of fuel oil audited is in order.


vi

Sl. No.

Recommendations

Time frame for implementation,

months

Coal- Overall process

01 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 Fuel along with Chief Chemists who will supervise, perform random quality checks and monitor the entire process of receipt and reporting of coal quality and quantity received and consumed 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 and Accounts 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 primary measurement for recording receipt quantity.

1

Coal Sampling

04 Sampling: The sampling of both receipt coal as well as bunkered coal at any time of the day must be witnessed by an officer level person since the sample determines the basis for determining station heat rate and indirectly relates the quantity of consumption. Periodic surprise checks by committee members are essential. The random table details of which wagon to take the sample must only be told to the personnel at the last minute by the Committee members.

2

05 Sampling improvement: Receipt coal sampling must be only through automatic samplers under the supervision of chemists. Chemists must witness the taking of the samples. Automatic samples can go deep inside the wagon whereas manual sampling has a tendency to sample only on the under surface of the heap.

4

06 Bulk density determination: During reduction process of coal samples coal density (by standard pot's weight and volume method) should be measured so that general record of coal density for particular coal colliery is available.

1

Coal Consumption calculation & Verification of stocks

07 Coal stock verification and reconciliation may be done once a month.

1


vii

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

09 Belt weighers: Belt weighers may be installed for all conveyors feeding to all units before entrance to the bunkers so that unit wise coal consumption can be arrived at. The unit wise coal consumption through belt weighers is present only in GHTP, Lehra Mohabat. The same may be installed in all units 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 signals from the belt weighers give coal flow in t/h and total flow and are of the re-setting type. The coal flow from the coal yard to the units (total composite flow) can be measured through these conveyors. In addition to the total flow to the units from the belt weighers, the unit wise consumption is required to be monitored to provide the unit wise performance. Microprocessor based interfaces for belt weighers needs to be installed or multiple time totalizers.

6

Coal-Reporting (quantity)

10 The reporting of the reconciled consumption must be on a monthly basis. Once the monthly stock and consumption is reconciled and arrived at it must be final and 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 & oil

13 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 receipt coals to ensure that certain lots do not weather for too long.

1

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

1

16 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.

2

17 Use coal compactors for compaction of the coal heaps to avoid spontaneous combustion and also to eliminate seepage of water and loss of heating value of the coal.

3

Coal-Method of testing fuel quality at site

18 A uniform method of coal measurement may be adopted for receipt and bunkered coal through GCV at equilibrated conditions in a bomb calorimeter and adding the effect of


viii

surface moisture to the GCV at the rate of 145 kcal/kg per 1 %.

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

20 Periodic surprise checks of witness the GCV determination for both receipt coal as well as bunkered coal in a bomb calorimeter by committee members is essential.

1

21 Random samples of both receipt coal as well as bunkered coal or a certain percentage of samples (5 to 10 %) as well as third party testing samples may be sent to independent, impartial truly third partly central laboratories whose result 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

22 It is recommended to go for additional set of sample primary and secondary crushing equipment including pulverizers.

4

23 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 recommended for each station along with room air conditioners for maintaining the temperature control of the 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 Regulatory Commission. The computation of SHR can still be on the basis of bunkered coal GCV but this value must not deviate beyond 150 kcal/kg from the receipt coal GCV value.

1

25 The computation of SHR must be on daily basis and the monthly value must be based on daily average. The annual value must be based on monthly average. The reporting period for SHR must be monthly.

1

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

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

1

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

1


ix

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.

Transit loss (TL)

28 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.

Demmurages

29 It was noticed that in all the three TPS wagon positioning 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.

30 Earlier wagon tippler systems were designed for 500 & 1000 t/h to empty a rake in 3 h. Present day systems are available in 1600 t/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.

31 Detailed study and upgradation of coal conveying system especially at GNDTP which is using vibratory feeders.

3

32 Rail tracking system through GPS or alternative technologies

3

33 Grab cranes for removal of stones from the wagon tippler area is present in Ropar. The same may be installed in Bhatinda and Lehra Mohabat

34 Rotary pneumatic or electrical hammers may be used for crushing coal lumps at the wagon tippler in place of manual hammering.

2

Penal overloading charges (POL)

35 Since loading is in the scope of Monnet, POL may be brought into the scope of Monnet.

3

Costs associated with stones and non-fuel foreign materials in coal

36 Frequent visits and inspections at the colliery loading end is essential to minimize the receipt of stones

1

37 Random sampling of rakes from washeries and captive mines in the presence of CIL officials may be undertaken

1


x

to sort out the issue with CIL and convince them that stones are from CIL.

FSA with Coal India Ltd (CIL)- STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

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

1

39 The FSA has provisions for consideration of the total moisture in the quality. The issue may be taken up with appropriate authorities for consideration of the coal GCV on the basis of inherent moisture plus the surface moisture in the coal loaded at the sending end. In other words 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 FUEL SUPPLY AGREEMENTS (FSAs)

40 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.

1

41 The FSA with captive mines has provisions for consideration of the total moisture in the quality. The issue may be taken up with appropriate authorities for consideration of the coal GCV on the basis of inherent moisture plus the surface moisture in the coal loaded at the sending end. In other words the inherent moisture effect of145 kcal/kg for 1 % may be added to the presently 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 of Monnet, the POL must be the in the account of the washery. This clause is recommended to be reviewed and reverted to include the POL into the scope of the washery.

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 coal input and output of washery.

1

44 Keeping in mind the that the density differences between coal, mineral matter and ash are low, the process yield for various input coals must be got validated by an independent third party agency such as CPRI or CFRI, etc..

3


xi

45 The process energy efficiency map along with economics for various input coal GCVs and washed coal GCVs must be got validated by an independent third party agency such as CPRI or CFRI, etc..

3

46 The telemetering system for on-line information of the in-motion weighbridge readings of receipt coal received and beneficiated coal loaded at PSPCL TPS is essential and must be implemented at the earliest to provide authentic tamper proof data on transit loss and total weighments of both receipt coal and washed coal dispatched at the Washery.

3

47 POL at the loading site of washed coal may be brought fully into the scope of Monnet which is presently shared 50:50 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 to non-equilibrium moisture in coal evaporating and coal coming back to equilibrium moisture. Moisture related TL must be in the scope of the washery.

1

49 The cost benefits of the washery process which is higher by almost 22-28 % to coal from other sources, may be reviewed. Apart from the clauses on quantity of washed coal delivered, the quality process may be reviewed. The coal lifted by the washery must be specified in terms of GCV, 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 (parts per million).

1

Agreement with liasioning agent

50 The transit loss may be fully included in the scope of the liasioning agent. The payments to the Liasion agent must be linked with the actual coal cost (landed price: coal +freight), ( i.e., Rs. 30/t x coal weight for the rake ) for every 1 % TL.

Next agreement


xii

Recommendations for unloading infrastructure, coal management in TPS & reduction of demmurages

Sl. No.

Particulars

Time frame

for implementation, months

Anticipated benefits

Anticipated investment, Rs. (lakhs) (3 stations)

01 Installation of in-haul out-haul betel chargers/side arm chargers in CHPs of the three stations

4 Saving in unloading

time

300

02 Use coal compactors for compaction of the coal heaps.

4 Minimizing coal

deterioration

90

03 Introduction of fogging systems at various locations in the coal yard

4 Reduction of pile

combustion

60

04 Rotary pneumatic or electrical hammers for crushing coal lumps

4 Process requirement

9

05 Grab cranes for removal of stones

6 Process improvement

30

06 Total investment required Process improvement

Rs. 489 lakhs

07 Anticipated savings for 3 TPS Rs. 197.15 lakhs

08 Pay back period 2.5 years


xiii

Recommendations for improvement in coal quantity and quality measurement processes

Sl. No.

Particulars

Time frame for implemen

tation, months



01 Additional set of sample primary and secondary crushing equipment including pulverizers

4 GCV determination

60

02 Software for online coal energy management

4 Tracking of coal losses

60

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

4 GCV determination

60

04 Microwave or Ultrasonic bunker level monitoring system with digital system


24

05 Automatic auger sampling of coal from wagons in a rake


60

06 Automatic online sampling of conveyor coal going into bunkers.


45

07 Total investment required Process improvements

Rs. 309 lakhs

08 Anticipated savings for 3 TPS

Rs. 30610 lakhs

09 Pay back period 1 month


xiv

Recommendations for TL reduction through monitoring of railway movement

Sl. No.

Particulars Time frame for implemen

tation, months




6 Saving in transit loss

60

02 Total investment required Process improvements

Rs. 60 lakhs


04 Pay back period 2 months

Recommendations for reduction in stones in receipt coal

Sl. No.

Particulars Time frame for implemen

tation, months



01 Taking up with Collieries for reduction in stones

6 Increased quantity of

coal

nil

02 Total investment required Increased quantity of

coal

Nil


04 Pay back period Nil since no investment


xv

CONTENTS Page

Nos. 1.0 INTRODUCTION 1 1.1 Scope of the fuel study 1 1.2 Experimental work 2 2.0 RECORDING, SAMPLING, REPORTING, VERIFICATION AND ACCOUNTING OF FUEL- OVERALL PROCESS, KEY CONSTRAINTS AND ASSESSMENT OF EFFECTIVENESS

2

2.1 Overall process 2 2.2 Recording (quantity) 2

2.3 Sampling 5 2.4 Accounting 6 2.5 Consumption calculation & Verification of stocks 7 2.6 Auditing 9 2.7 Reporting (quantity) 9

3.0 METHOD OF TESTING OF COAL & FUEL OIL AT SITE, BASIS FOR RELEASE OF PAYMENT & BASIS FOR WORKING OUT THE STATION HEAT RATE

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 FOR HIGH LOSS

17

4.1 Fuel cost 17

4.2 Freight 19

4.3 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


xvi

4.10 Coal stock maintenance cost 28

4.11 Weigh bridge labour cost 29

4.12 Costs associated with stones and non fuel foreign materials 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 PASSED ONTO THE CUSTOMERS AS AN UNCONTROLLABLE COST

41

7.0 COMPARISON OF FUEL PARAMTERS WITH NATIONAL /INTERNATIONAL STANDARDS.

42

8.0 CONCLUSIONS 43

REFERENCES 46

Annexure – 1: Figures, graphs and photographs 48

Annexure – 2: Tables and charts 79

Annexure – 3: Comments by PSPCL 129

Annexure – 4: CPRI replies to comments by PSPCL 153

Annexure – 5: CPRI comments on Discussion points raised by PSPCL 175


xvii

Abbreviations/Nomenclature ABT Availability based tariff

AC Alternating current

ADB Air dried basis (of specifying GCV)

AFB As fired basis (of specifying GCV)

C & I Control and instrumentation

CA Chemical Analysis

CC Carrying capacity

CHP Coal handling plant

ERC Energy regulatory commission

ERP Enterprise resource package

FIFO First in first out

FO Furnace oil

GCV Gross calorific value (kcal/kg or MJ/kg)

GoI Govt. of India

GRN Goods receipt note

H Time period block (hours)

HCV Higher calorific or heating value (kcal/kg or MJ/kg)=GCV

HGI Hardgrove Index of coal

KPI Key performance indicators

LDO Light diesel oil

Max. Maximum

MCR Maximum continuous rating of the unit

Min. Minimum

PLF Plant load factor (%)

POL Penal overloading of wagons beyond their carrying capacity

R & M Renovation and modernization

ROM Run of mine (open cast mining)

RR Railway receipt

SAIDI System average interruption duration index

SAIFI System average interruption frequency index

SFC Specific coal consumption (kg/kWh = t/MWh)

SH Superheater

SHR 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/MWh

T Temperature (0C)

TL Transit loss

TPS Thermal power station

UHR Unit heat rate (kcal/kWh)

v Velocity (m/s)

Greek letters

Difference

Efficiency (dimensionless or %)


1

1.0 INTRODUCTION

The objective of the study is the independent fuel audit for PSPCL stations, viz., GGSSTP, Ropar, GNDTP, Bhatinda, and GHTP, Lehra Mohabat and suggestions for improvements.

1.1 Scope of the heat rate study

The scope of the fuel audit study is as follows: 1. Study system of recording, sampling, measurement, reporting, verification & accounting for coal and Oil receipts, consumption and stocking as inventory. 2. Identify key constraints with the current fuel accounting system across process, technology, skills and facilities. 3. Assess effectiveness of existing coal and oil tracking and accounting system and practices. 4. Study the Fuel supply agreements and the relevant regulatory orders / directions / rules and regulations and evaluate whether there is any deviation and procedural gaps. 5. Measure the Gap between billed quality and quantity vis-à-vis actual receipt of coal and oil. 6. Ascertain the loss and assess reasons for high losses, if any. 7. Method of Testing of coal at site and at plant and basis for release of payment. 8. Treatment of stones or any foreign material in the coal. 9. Calorific value based on which coal consumption is worked out i.e. Gross or fired and the extent of difference between the two. 10. Various components, including demurrage, loaded on the fuel cost along with their justification. 11. Status of availing the rebate being offered by Railways or any other agency. 12. Comparison of various fuel consumption parameters with national (comparison with NTPC/Private Sector Thermal Plants) / international standards. 13. Submit report on findings, along with recommendations for proper fuel accounting.


2

14. To check more precisely the methodology regarding computation of cost of fuel 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 per scope during February 2012. The observations, results of study and discussions are given in the following sections.

2.0 RECORDING, SAMPLING, REPORTING, VERIFICATION AND ACCOUNTING OF FUEL- OVERALL PROCESS, KEY CONSTRAINTS AND ASSESSMENT OF EFFECTIVENESS 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 Fuel along with Chief Chemists who will supervise, perform random quality checks and monitor the entire process of receipt and reporting of coal quality and quantity received 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) Weight – Net TPS Weight]

Net TPS Weight = [Gross Weight – Tare 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 of the each loaded wagon which passes on the track is automatically recorded in


3

the computer of in-motion weighbridge installed at the entry point of Plant. The net weights are determined by either sending the empty rake over the weigh bridge or by taking the stencil tare weight of the individual wagons (marked on each wagon). The weight of the coal received is recorded on electronic weigh bridge wagons wise/rake wise and print outs are taken after feeding the wagon no and the tare

weight of each wagon. Shift staff posted in the Coal handling plant prepares a consolidated receipt (CR notes). The weight measurement process is as follows:

i. The coal is weighed (gross) at the mine or sending end through in-motion

weigh bridges and the weight is known through the rail way receipt (RR).

ii. The coal is again weighed (gross) at the receiving end at the power station through in-motion weigh bridges at the coal yard.

iii. The tare weights are generally determined through the stencil weight of

the individual wagons but can also be determined through running the empty train over the in-motion weigh bridge. Generally the stencil weight is the accepted mode of tare weight.

iv. The net weight of the coal is determined by deducting the tare weight of

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

v. The Fuel Section tallies the TPS net weight with the RR weight and

determines the transit loss.

vi. In case of washed, imported or captive mine coal since the weighment is at receiving end only. Transit loss is not calculated.

Sl. No.

Mine end

TPS end

Calculation of transit loss

01 Availability of measurement

yes yes Yes

02 yes no TPS weight is taken as RR weight. No transit loss.

03 no yes Sum of CC (Carrying capacity) of wagons for payment

04 no no Coal weight = Sum of [CC (carrying capacity) – stencil weight of wagon]


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Sl. No.

Coal source Basis for payment

01 Coal India Ltd. Sending end weight only (RR) or in the absence of sending end weight sum of Carrying capacity of wagons. Sometimes en route weight is taken but not for the purpose of payment.

02 Captive mines (Panem)

Receiving end weight. Sending end weight is insignificant.

03 Washeries (MDL, ACBL)

Receiving end weight. Sending end weight is not considered since Performance Guarantee test is not conducted.

Observation and recording: The coal recording system at the three TPS are in order and are tamper proof. The system is sealed by representatives of all the stake holders. The system is also having redundant power supply from three sources and the chances of the system not recording under power failure is quite remote. Recommendation: The data file composed of gross weight, wagon nos and tare weight may be made portable to the Fuel Section and Accounts for archiving of the online data.

2.2.2 Fuel oil The weight measurement process is either through in-motion weigh bridges (weight measurement) or through dip level measurement (volumetric measurement) as follows:

i. The fuel oil is weighed (gross) at the refinery or sending end through in-

motion weigh bridges and the weight is known through the rail way receipt (RR). Alternatively, dip level at the pouring temperature of the oil is taken at the sending end and recorded in the RR. Both systems are in vogue.

ii. The fuel oil is again weighed (gross) at the receiving end at the power station through in-motion weigh bridges at the fuel oil yard for the case of sending end weight being through in-motion weigh bridges.

iii. In the event of dip level measurement the dip level is taken for individual

wagons and corrected to the temperature and the final volume of each wagon is determined.

iv. The tare weights (only for the in-motion weight measurement) are

generally determined through the stencil weight of the individual wagons but can also be determined through running the empty train over the in-


5

motion weigh bridge. Generally the stencil weight is the accepted mode of tare weight. For the case of sending end dip measurement this is not relevant.

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 weigh bridge. The sum total of the net weights of all the wagons gives the weight of the rake for which payments are made.

vi. The Fuel Section tallies the TPS net weight with the RR weight and

determines the payment on the basis of the receiving end weight only. In the event of dip level measurement, the Fuel section tallies the sending end dip levels of individual wagons with corresponding dip levels taken at the TPS and determines the basis for payment at the receiving end volume only.

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 three stations 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 level measurement 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 be remembered at a rake consists of around 4000-4500 tonnes of coal so the sample size 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 and recommendations on the process are as follows: Recommendation: Sampling: The sampling of both receipt coal as well as bunkered coal at any time of the day must be witnessed by an officer level person since the sample determines the basis for determining station heat rate and indirectly relates the quantity of consumption. Periodic surprise checks by committee members are essential. The random table details of which wagon to take the


6

sample must only be told to the personnel at the last minute by the Committee members. Recommendation: Sampling improvement: Receipt coal sampling must be only through automatic samplers under the supervision of chemists. Chemists must witness the taking of the samples. Automatic samples can go deep inside the wagon whereas manual sampling has a tendency to sample only on the undersurface of the heap. Recommendation: Bulk density determination: During reduction process of coal samples coal density (by standard pot's weight and volume method) should be measured so that general record of coal density for particular coal colliery is available.

2.3.2 Fuel oil In the case of fuel oil sampling of fuel oil is not being done as there is very little variation in the fuel oil GCV.

2.4 Accounting

2.4.1 Coal The weight of the coal received is recorded on electronic weigh bridge wagons

wise/rake wise and print outs are taken. Shift staff posted in the Coal handling plant prepares a consolidated receipt (CR notes). On receipt of coal rake, wagon

details such as Wagon No., CC Weight, Tare Weight, Colliery, Coal Company, consigned or diverted are noted down and four copies of Coal Receipt (CR) Note are prepared. One copy of CR Note is handed over to the In-Motion-Weigh-Bridge staff, second copy to Chemical Department for sampling, third copy to Railway Department and fourth copy is retained by Fuel Cell. On receipt of computerized CR note, the details of wagon are tallied with the hand written CR note and then sent to Computer Cell for punching. This data is further recorded manually on rake register and then fed to computer after matching it with the Railway receipt generated from the loading station. Then goods receipt note (GRN) is prepared on monthly basis. From this data various reports are generated. On receipt of check list from the computer cell final CR note is prepared.

All the coal receipt data is maintained by the three TPS on daily basis, consolidated on monthly basis & then on yearly basis. All the data is available with TPS. A detailed study of the process indicates that the system of coal quantity recording and accounting is in order. The Commercial Accounting System, Vol. III (Fuel manual) is in order.


7

2.4.2 Fuel oil

The oil receipt basis data is recorded, as and when the oil rake arrives. The RR 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 is

recorded in dip register. The copies of the receipt records go to the fuel cell from 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 Lehra

Mohabat. In other stations, the belt weighers are not present for daily consumption measurement and the same is arrived at based on assumed value of coal factor (specific coal consumption) multiplied by the energy generated. 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 know the 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 unit performance. Hence, the estimated specific coal consumption does not reflect on the realistic coal consumption of any particular unit in question. The present method gives only station coal consumption and does not give sensitivity to unit coal consumption.

The monthly coal consumption is arrived at by the sum total of the daily consumption. The quarterly or annual consumption is arrived at by taking the sum of the monthly consumptions and tallying it with the physical verified coal stock on hand. Physical verification of coal in the coal storage yard is done with dumpy level method by civil department at the end of each month and quarterly by Technical Audit, PSPCL, Patiala. The coal stock is generally verified quarterly. Recommendation: Coal stock verification and reconciliation may be done once 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.


8

Recommendation: Belt weighers: Belt weighers may be installed for all conveyors feeding to all units before entrance to the bunkers so that unit wise coal consumption can be arrived at. The unit wise coal consumption through belt weighers is present only in GHTP, Lehra Mohabat. The same may be installed in all units 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 signals from the belt weighers give coal flow in t/h and total flow and are of the re-setting type. The coal flow from the coal yard to the units (total composite flow) can be measured through these conveyors. In addition to the total flow to the units from the belt weighers, the unit wise consumption is required to be monitored to provide the unit wise performance. Microprocessor based interfaces for belt weighers needs to be installed or multiple time totalizers. The specification of belt weighters is given 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 unit wise coal consumption is essential. This is possible by providing a system of monitoring the time elapsed by a belt over a given bunker. Unit wise bunkered coal data can be available after installation of timed totalized belt weighers. Bunker level measurement: Coal level in the bunker is presently recorded manually. It is a process wherein the bunker levels are conveyed by manual observation from the bunker area to the Coal handling plant and from there it is relayed to the control room over telephone. This manual information relay system is obsolete 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 coal stack. Microwave or Ultrasonic bunker level monitoring system with digital data output, communication of data to central server or control room. On line coal energy management: Software is to be in place for online coal energy management in the plant. The software must input data from the various field instruments for coal receipt from various sources and coal consumption at various bunkers. This must also compute the coal consumption, heat consumption, 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 at the end of month total oil consumption & balances are recorded. Physical verification of oil in the oil storage yard is done quarterly by taking dip of oil manually by Technical Audit, PSPCL, Patiala, whereas daily oil consumption is measured by taking dip of oils tanks which are in service by taking dip manually by fuel cell and operation circle. Since the measurement process is based on the dip level the possibilities of errors in the stock calculations are low.


9

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 by internal auditors and accounts. The audit is also be done by external auditors. A detailed 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 done by internal auditors and accounts in the same manner as for coal. The audit is also be done by external auditors. A detailed study of the process from the receipt till the reporting 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 the consumption 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 is arrived at from the verification report of Technical audit from Patiala. This coal consumption is basis for computation of the heat rate. Audit of the process indicates that the process is in order so far as the accounting of the numbers or quantities is concerned. Observation: The stock on hand and the consumption calculations must be essentially be on a monthly basis and any reconciliation must be on a monthly basis only and not on a quarterly basis. Recommendation: The reporting of the reconciled consumption must be on a monthly basis. Once the monthly stock and consumption is reconciled and arrived at it 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 of the 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 which is arrived at from the verification report of Technical audit from Patiala. Audit of the


10

process indicates that the process is in order. Since all measurements are based on dip levels which are accurate the margin for erroneous reporting is low. Recommendation: The reporting of the reconciled consumption must be on a monthly basis.

3.0 METHOD OF TESTING OF COAL & FUEL OIL AT SITE, BASIS FOR RELEASE OF PAYMENT & BASIS FOR WORKING 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 it directly 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 the following 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: rake

wise, 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 the purpose 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 and Higher calorific value.


11

UHV and GCV though connected are different. UHV is determined by measuring the ash and moisture contents. GCV is determined by proximate analysis as well as by bomb calorimeter. GCV is higher than UHV as per the data given by the coal Ministry. Coals received from collieries are analyzed for their Useful heating value (UHV), a factor 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 variation permissible 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 and receiving 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 sampled

at the receiving point. This is connected to the UHV by the formula given by Coal ministry.

GCV = A0 + (A1 x UHV)

Formula AO A1 Reference

1 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 into

the boilers. This is sampled at the conveyor belts just prior to the bunker or at the coal feeder.

The GCV of both receipt coal as well as bunkered coal can be either represented as either Air dried basis (ADB) where the GCV is determined by drying the sample in air or as As fired basis (AFB) wherein the moisture effect is subtracted. The different between the two is around 280-350 kcal/kg and the connection between the 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 GCV and bunkered coal GCV should be within 150 kcal/kg of the receipt coal GCV. The drop or difference between the receipt coal GCV and the bunkered coal GCV


12

indicates the drop in heating value at the coal handling plant of the TPS. Cost wise it is tantamount to loss of quantity of fuel. According to a technical study by NTPC, R & D, the maximum drop in GCV of coal in

a coal yard is around 600 kcal/kg in an year [3]. The drop of GCV in the coal yard

according to one study is given in Table 7 [5]. According to another study in the

Illionis region [6] is in-between 1.4 %/year (70 kcal/kg/year) in winter like weather

and 2.1 %/year (105 kcal/kg/year) in summer like weather.

In the present case, the number of days of storage is varying from 9 to 30 and hence the drop in GCV should not exceed a value of 150 kcal/kg. Table 8 gives the theoretical and actual drop of the GCVs at the receipt and bunker. Table 9 gives the annual drops for the three stations (GNDTP has not provided). Figure 1 & 2 gives the variation in GCV drop during the past three years.

GGSSTP, Ropar

Year

Receipt coal GCV kcal/kg

Bunkered coal GCV, kcal/kg

Actual drop, kcal/kg

2009-2010 4900.7 3967 933.7

2010-2011 4931.7 3950 981.7

2011-2012 4929.1 3941 988.1

Observation: The decrease in GCV of the bunkered coal could be due to over valuation of receipt coal. The analysis of GCV drop in other utilities is given in Table 10.

Observations by MERC regarding stacking loss in Coal yard:

It is hereby concluded that there is no methodology for computing stacking loss and the best available as on date is the draft CERC/MoP norm of reducing receipt coal GCV by 150 kcal/kg. Hence it is recommended to use this method for computing the stacking loss.

GHTP, Lehra Mohabat

Year Receipt coal GCV kcal/kg



2009-2010 4913.6 4077 836.6

2010-2011 4734.6 4022 712.6

2011-2012 4750.1 3932 818.1


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

B-1.7 „Gross calorific Value‟ or „GCV‟ - The heat produced in kCal by complete combustion of one kg. of solid fuel or liquid fuel or one standard cubic metre (Sm3) 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 received shall be reduced by 100 kcal/kg to arrive at the GCV of the fuel as fired for the purpose of determination of the fuel consumption.

The bunkered coal GCV can be arrived at by reducing receipt coal GCV by 100 kcal/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 cases higher than 500 kcal/kg, and therefore, the Commission directs MSPGCL to constitute a Committee to investigate the huge variations in 'bunkered' Calorific Value of blended coal and weighted average Calorific Value of blended coal on 'as received' basis and submit its Report with recommendations and action plan to limit such stacking loss to 150 kcal/kwh within six months from the date of issuing of this Order.

Recommendation: The drop in GCV between the receipt coal and bunkered coal may 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 being measured. Both measurements may be made on equilibrated basis and the effect of surface moisture may be added at 145 kcal/kg for 1 % by determining the total moisture along with the original sample.

After the visit to the three stations, the proposed methods of reduction of coal yard losses 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 other

collieries 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 avoid spontaneous combustion and also to eliminate seepage of water and loss of heating value 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 compared to the earlier grading. The quantity weighted average GCV of the receipt coal need


14

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

Figures 3-5 gives the effect of reduction in GCV difference on coal consumption for GGSSTP, 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 seen

that 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 for determining UHV is given in Table 13.

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

The balances (accuracy: 0.1 mg) and ovens (accuracy: 3.0 °C) are of the

required accuracy and reliability for determination of UHV and GCV by proximate analysis. The accuracy of proximate analysis is 0.5 %. The equipment in all stations have a valid calibration certificate.


15

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

Recommendation:

The receipt coal GCV may be determined on equilibrated basis. The total moisture may also be determined for the same sample and the effect of moisture may be added to the receipt coal GCV at the rate of 145 kcal/kg for 1% increase in surface moisture.

The bunkered coal GCV may also be determined on equilibrated basis. The total moisture may also be determined for the same sample and the effect of moisture may be added to the bunkered coal GCV at the rate of 145 kcal/kg for 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 for both receipt coal as well as bunkered coal in a bomb calorimeter by committee members is essential.

Recommendation: Random samples of both receipt coal as well as bunkered coal or a certain percentage of samples (5 to 10 %) as well as third party testing samples may be sent to independent, impartial truly third partly central laboratories whose result 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 not confirming the BIS. The sample crushers are not crushing the coals of the required size. Sample preparation improvement: Sample preparation must be through standard crushing and pulverizing equipment.

Recommendation: It is recommended to go for additional set of sample primary and 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 recommended for each station along with room air conditioners for maintaining the temperature control of the cooling water.


16

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 is taken 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 9,300 kcal/l. The mix of oil normally used is 72 % Furnace oil and 28 % LDO. The GCV of the 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. The bunker 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 for the coal purchased. The receipt coal GCV is not reported to the Regulatory Commission. The bunkered coal GCV is related to the receipt coal GCV. Generally the bunkered coal GCV must not be lower than 150 kcal/kg of the receipt coal GCV to take care of the stacking loss. Recommendation: The receipt coal GCV which is the basis for payments must also be a part of returns filed to Regulatory Commission. The computation of SHR can still be on the basis of bunkered coal GCV but this value must not deviate beyond 150 kcal/kg from the receipt coal GCV value.


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

4.0 PAYMENTS ASSOCIATED WITH FUEL RELATED COSTS, 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 seen that 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 is seen 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. It can be seen that cost of coal and freight is the major cost accounting for 97-99 % of the cost. The primary cost is the fuel cost. Since the Coal India billing is on the basis of the sending 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 the receiving 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 the receipt coal GCV. This is a more appropriate index because coal is valued based on the 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 2011-12 are reproduced here:

GGSSTP

GCV (kcal/kg)

Coal cost

(Rs./t)

Freight cost

(Rs./t)

Landed cost (Rs./t)

Cost of Energy

(Rs./Gcal)

ARYAN 4639.7 1664.2 2051.8 (*) 3716.1 800.9

CCL 4617.2 1422.2 1463.6 2885.8 625.0

MDL 4712.0 1777.2 1820.2 3597.4 763.4

PANEM 4979.1 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)

Coal cost

(Rs./t)

Freight cost

(Rs./t)

Landed cost (Rs./t)

Cost of Energy

(Rs./Gcal)

CCL 4632.8 1386.1 1496.1 2882.2 622.5

MONNET 4695.6 1630.0 1884.1 (*) 3514.1 748.4

PANNAM 4785.7 1073.7 1603.6 2677.2 559.4

DVT IN 4679.6 1166.0 1606.5 2772.5 588.4

GRAND TOTAL

4747.4 1135.0 101135.0 2850.4 596.4

GNDTP

GCV (kcal/kg)

Coal cost

(Rs./t)

Freight cost

(Rs./t)

Landed cost (Rs./t)

Cost of Energy

(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

GRAND TOTAL

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 unit quantity of washed coal and not actual freight cost. The cost of Pannem mines is around 7-10 % cheaper than CCCL coal. This is in line with the discount of 12 % offered by Pannem. It can be seen that on the basis of original coal supplied, the cost based on Rs./Gcal form Monnet and ACBL washed coal is 22-28 % higher than the raw coal. The high cost for the coal from the washeries is that their increase in GCV due to washing 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 the yield must be much higher (say 87 %). Recommendation: An independent third party validation of the washery energetics to map the yield as a function of the input raw coal quality and washed coal quality is required. At present, the washing charges (Rs. 120/tonne) are not being paid to the washeries because of the PG test is not over. However, in the long run washing charges are applicable. 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:


19

Sl. No.

Station TL

(%)

SHR (kcal/kWh)

Cost of Coal

(Rs./kWh)

Cost of energy

(Rs./Gcal)

1 Kota TPS, Rajasthan 2605 1.7 652.6

2 SSTPS, Rajasthan 2500 2.1 828.8

3 Panipat (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

7 GSPGCL, 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 evaluated in 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 buy cost/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 and the rate fixed. The distances between the coal mines and washeries to GHTP are as follows:

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


20

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

ii. Moisture loss from the wagon will be only on the surface of the wagon. The wagon 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 a depth of 0.3 m of coal, bulk density of uncrushed coal is 1118 kg/m3, the weight loss is 107 kg per wagon assuming that the time of transfer is around 2-3 days.

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

iv. Removal of coal from unauthorized elements at the peripheral areas of mines and at certain stops: This cannot be quantified. The help of Railway police forces 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 t which 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 and

imported. 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 coal

is transported and the transit loss levels cannot be empirically established. In


21

the case of Maharashtra and Gujarat, even though there is wide variation in

the distances between mine and the various TPS a constant TL of 0.8 % has

been fixed. The majority of the coals are raw unwashed coals.

5. Table 23 gives a review of the TL applicable to other utilities.

Observations and recommendations: TL for the year FY 2009-10 to FY 2011-2012 is given as follows:

Sl No.

TPS 2009-10 2010-11 2011-12

01 GGSSTP, Ropar 1.15 1.16 1.23

02 GNDTP, Bhatinda 0.66 -0.15 0.08

03 GHTP Lehra Mohabbat

1.16 1.33 1.25

6. The sources wise details of TL are given in Table 24. It can be seen from the

above Table that the major TL is on account of CIL coals. Since GNDTP is

getting majority of the coal (90 % this year) from Pennam, the TL is quite low.

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

follows:

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

GGSSTP 487.835 10.49 0.35 0.66

GHTP 492.230 11.25 0.39 0.69

GNDTP 9.932 0.70 0.02 0.05

8. Figure 27-42 give the monthly variation of TL over the last 3 years. The

following can be seen from the figures:

The variations indicate that the cause of TL is mostly due to mismatch

between the sending end and receiving end weigh bridge readings.

In the case of washeries, the fluctuations are quite high, indicating

weighing is not stabilized.

Transit loss from unconnected wagons is also high but the quantity is

quite low.

In case of very high TL it can be attributed to enroute thefts by illegal

or unauthorized elements.

9. TL is applicable only to coals where the sending end (mine) weight is the basis

for payment. In cases where the receiving end payment (TPS end) is the basis

for payment, such as captive mines, the TL is not applicable and the shortage


22

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 supplier‟s 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 agent‟s scope is restricted to CIL coal only. The Liasion agent‟s

payment under ideal conditions is Rs. 53/t (maximum) for the full quantity of

the rake. The payment to the Liaison agent is linked with coal shortage as

follows:

Sl. No.

Rake wise percentage shortage received

Charges Rs./t for total quantity received in a rake

1 Shortage 1.5 % to 2.0 % 13.51

2 Shortage 1.0 % to 1.5 % 27.03

3 Shortage 1.0 % to 0.5 % 40.54

4 Shortage below 0.5 % 45.05


23

In other words, in case of coal shortage below 0.5 %, the LA gets Rs. 45.05/t + Rs. 8.0/t = Rs. 53/t for the quantity of the entire rake on rake to rake basis. The payments to LA will get progressively reduced if TL increases. These rates per tonne are multiplied by the total quantity of the rake for deciding the payment.

15. In case the TL exceeds 2 % penalty will be deducted from the receivables of

the Liaison agent as follows:

Sl. No.

Rake wise percentage shortage received

Penalty leviable Rs./t for total quantity of coal received in the rake

1 Shortage 2.0 % to 2.5 % 4.5

2 Shortage 2.5 % to 3 % 9.01

3 Shortage 3 % to 3.5 % 13.51

4 Shortage 3.5 % to 4 % 18.02

5 Shortage 4 % to 4.5 % 24.78

6 Shortage 4.5 % to 5 % 31.53

7 Shortage 5 % to 5.5 % 38.29

8 Shortage above 5.5 % 45.05

In the case when TL exceeds 2 %, the LA will not receive any charges but instead will have to pay upfront penalties from his earlier/future receivables to PSPCL.

16. Simulation of impact of TL on the three TPS:

Figure 43 gives the typical loss per rake for a typical TPS-GGSSTP.

17. Figure 44 indicates that the impact of TL on the payment to Liasion agent.

18. It is seen from the Figure that upto 2 % TL, the Liasion agent‟s payment

compensates for the cost. Above 2 % TL, the Liasion agent inadequately

compensates for the loss. The actual coal cost (landed price, i.e. coal +

freight) may be compensated by Liasion agent if the penalty is directly linked

to landed coal cost which is Rs. 30/t for 1 % shortage of coal (1 % of Rs.

3000/t). Otherwise the costs do not compensate.

19. Strategies for reduction of TL: Strengthening of the involvement of PSPCL

officials in the loading process at the mine end. This would also help in

bringing down the stones, POL issues, etc. Table 25 gives the steps for

reducing TL as applicable to PSPCL.

20. The experience of reducing TL in steps to converge to the CERC norms has not

met with much success in some utilities including at PSPCL (2003-04 3 %

reduced to 2 % in 2004-05 and proposed 0.33 % reduction/year in the next


24

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 with

central 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 causes are:

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, wagon

tippler, coal conveyor, etc.) derailment of wagon at the wagon tippler. Controllable causes are:

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 highest

demmurages are paid by GGSSTP followed by GNDTP. It is low for GHTP. Figure 49 gives the demmurages for the three TPS.


25

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

12 is as follows:


GGSSTP 330.36 7.09 0.18 0.45

GHTP 39.49 0.89 0.02 0.03

GNDTP 53.71 3.83 0.13 0.29

Variations between Table 26 & Table 19 are because of account process of indicating actual payments only. Payments in dispute or in suspense are not indicated in Table 19. 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 58.6

t 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.


26

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/day GNDTP: 1-2 rakes/day GHTP: 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 1350

02 GNDTP, Bhatinda 552 364 348

03 GHTP Lehra Mohabbat

1246 1158 876

The details of source wise rake receipt are given in Table 27 for the 3 TPS. Figures 50-52 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 wagon

positioning 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 ºC and designed weight of 110 t (CC: 70 t + tare weight:

20-21 t). The capacity of equipment downstream of wagon tipplers such as


27

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 1600

t/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 tippler

hopper and at the feeder is also a reason for delay. Some benefit can be got from automatic positioning. But the most critical time or limiting time is the clearing of coal from the tippler hopper. Pan type Apron feeders are universally recognized as the feeders to absorb high loads and impacts. Recommendation: Detailed study and upgradation of coal conveying system 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 by effective tracking of wagons from their source mine to their destination (power house coal yard). Recommendation: Rail tracking system through 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 and Lehra Mohabat.

20. Recommendation: Rotary pneumatic or electrical hammers may be used for crushing coal lumps at the wagon tippler in place of manual hammering.

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 because the overloading charge is low compared to coal cost and there is a tendency to 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:


28

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

GGSSTP 297.20 6.38 0.22 0.40

GHTP 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 of indicating actual payments only. Payments in dispute or in suspense are not indicated in Table 19. Table 32 is the actual incurred value (independent of payment). 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 agents

This 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.


29

4.11 Weigh bridge labour cost

The weigh bridge labour cost is in order.

4.12 Costs associated with stones and non fuel foreign materials in coal

1. The volume of stones above 250 mm size, is determined periodically by making 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 for seeking credit to stones. Presently, the stones are not being sold and are being 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 that

the % of stones is high in GGSSTP (1.2-1.8 % of the receipt coal) while it is normal 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 L in GNDTP & Rs. 34 L in GHTP (please refer to Table Nos. 19-1,2,3 in Annex 2). The cost upgradation due to stones on the cost of generation for 2011-12 is as follows:


GGSSTP 428.074 9.20 0.31 0.58

GHTP 619.960 14.17 0.49 0.87

GNDTP 75.425 5.32 0.18 0.40

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

4. Our study of stone from other stations indicates that average stones expected

from 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 not normally encountered and the issue must be taken up with the collieries to reduce the same.

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

6. The cost of stones is being recovered or refunded by Coal India Ltd. , but

there is an issue with CIL about the stones originating from the washeries and captive mines.

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


30

8. Table 34 gives the details of generation of rejects (very low grade coal, stone particles emanating from the mill reject gate) which are generally sold to brick kilns, 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 normal since 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 other agencies At present the system of offering rebates is made away with by the Railways. This system 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 quality

parameters such as but not limited to ash, volatile matter, fixed carbon, Gross

Calorific 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 after equilibrating at 60% relative humidity (RH) and 40 degree Celsius as per the relevant provisions (relating to determination of equilibrated moisture at 60% RH and 40 degree Celsius) of BIS 1350 of 1959 or amendment thereof.

“Surface Moisture” means the moisture content present in Coal that is derived as the difference between Total Moisture and Equilibrated Moisture, and expressed in percentage terms.

“Total Moisture” means the total moisture content (including surface moisture) expressed as percentage present in Coal and determined on as delivered basis in pursuance 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 on Equilibrated Basis through a Bomb Calorimeter in accordance with to the


31

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 analysis of Total Moisture and t h e other portion (three fourth of the Gross Sample) called Part-2 for Proximate Analysis and determination of UHV on Equilibrated basis.

11.2 Adjustment for analyzed quality/ Grade 11.2.1 The bills with regard to adjustment for quality, as determined under

Clause 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 being factored into the GCV and only being given concession in weight in case the surface moisture exceeds the inherent moisture by 7 %. Recommendation: The inclusion of surface moisture in the GCV computation may be taken up at appropriate forum. The GCV on as received basis is a better representation of the heat content rather than the moisture free basis. Recommendation: The joint witness of weighment and quality determination at the sending end must be fully utilized for ensuring that quality and quantity are in order.

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 % of prevailing BCCL coal price

Remarks

A 38

B 33

C 19

D 15

E 12

F 19 Non-conforming


32

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 % of

the 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 supplier’s

price. 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.


33

5.3 FSA with coal washeries (Monnet Daniel,ACBL) Preamble:

1. In a washery process the extraneous mineral matter (like clay and sand and

stones) 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 India‟s 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 %.


34


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. TL between washery and the TPS is in the scope of PSPCL. The FSA specifies

the installation of in-motion weighbridges or raw coal and beneficiated coal

at the Washery with facility for telemetering the data at PSPCL. Presently, this

facility is not operational.

7. The demurrages for unloading of ROM coal at the washery end and for

loading of washed coal at washery end is in the scope of Monnet and not

chargeable to PSPCL.

8. If coal is not loaded by CIL, then the loading charges alone are payable by

PSPCL as per agreed rates.

9. The reject matter from the washing and beneficiation process and their

disposal is entirely in the scope of Monnet.

10. POL for loading of washed coal at the Washery end will be shared between

PSPCL & Monnet in the ratio of 50:50. This is a clause in a standard washery

FSA. Recommendation: Since washed coal loading is entirely in the

control of Monnet, the POL must be the in the account of the washery. This

clause is recommended to be reviewed and reverted to include the POL into

the scope of the washery.


35

11. Unloading of washed coal including demurrages at the TPS is in the scope of

PSPCL.

12. The performance guarantee test is yet to be conducted on the Washery.

13. Quality linked payments applicable at receiving end (TPS end):

13.1 Ash content- F & G grade coals as per Coal India gradation: For

F & G grade coals payment is based on ash at equilibrated conditions

(40 ºC and 60 % RH) not to exceed 34 % at an actual yield of 80 %.

If the ash is less than 33 %, then the lower yield will be considered.

13.2 Ash content-E grade coals as per Coal India gradation: For E

grade coals ash at equilibrated conditions (40 ºC and 60 % RH) not to

exceed 29 % at an actual yield of 80 %. If the ash is less than 28 %,

then the lower yield will be considered.

13.3 Yield is linked to ash content of the washed/beneficiated coal on a

monthly average basis.

13.4 Moisture content: Maximum moisture is 10 % without penalty and

cut of moisture is 13 % with penalty, provided the total equilibrated

moisture of coal is 7 %. In other words, the maximum moisture

content must not exceed 5 % over the equilibrated moisture. In case

the equilibrated moisture is changed then the limits will vary

accordingly – allowable 3 % higher and cut off 5 % over the

equilibrated moisture. Penalty is that no beneficiation charges will be

paid for that rake.

14. Quality linked payment applicable at Washery end:

Material efficiency- yield: Theoretical yield (mass of beneficiated product

coal to mass of raw coal fed in) is taken as 84.2 % and the organic efficiency

or yield (actual yield as percentage of theoretical yield) is taken as 95 %. The

overall yield or actual yield is therefore:

Material efficiency/yield = Mass of beneficiated product/ mass of coal input to the process = 84.2 x 0.95 = 80 %

The theoretical yield is taken as a constant and the organic yield is considered as a variable. If the organic yield is lower by 0.1 % then the penalty is 3 % of the beneficiation charges for an organic yield between 93 & 94 %. If organic yield is below 93 % it will not be accepted. The guarantee on yield is at the Washery loading end and not at the receiving end.


36

Observations and recommendations:

1. While the tangible and intangible benefits are indisputable, the energy

efficiency of the washery process and its effect on the fuel cost is of

paramount importance in determining the cost viability of the process.

2. The FAS with coal washeries involves receipt of coal on the basis of only ash

and moisture as quality. The quantity and the ash, moisture are the

basis for payment to the washeries. An 80 % yield is permitted for the

washeries which implies that 20 % of the original coal is reduced.

Year

UHV of raw coal

lifted by washery

UHV of raw coal supplied

by washery

GCV of raw coal

lifted by washery

GCV of

raw coal

supplied by

washery

Actua

l

gain, kcal/

kg

Gain in

heatin

g value,

%

Loss of

weight, %

Overall energy

efficiency of washing , %

2009-2010 3386 3916.71 4364.2 4707.2 343.1 7.86 20 86.29

2010-2011 3378 3945.83 4359.0 4726.1 367.1 8.42 20 86.74

2011-2012 3393 3924.33 4368.7 4712.2 343.5 7.86 20 86.29

3. Analysis of the GCV of the coal lifted by washeries and dispatched by

washeries indicates a gain in GCV of 343-367 kcal/kg which is 7.86-8.43 %

against of loss of 20 % of the primary weight of the coal. The energy

efficiency of the process is 86.5 %.

4. The raw coal lifted by the washeries is through trucks for which the charges

are around Rs. 120/tonne. Two samples of the lifted coal is being taken every

20 days.

5. Recommendation: GCV of both receipt and washed coal is to be

determined, documented and reported for each and every rake of coal input

and output of washery (Ref: p. 68, item No.6 titled Analysis of FSA of PSPCL

with Monnet Daniel Washeries).

6. Receipt coal quality: The overall yield is strongly dependent on the ash

content of the receipt coal. In the event of the receipt coal having ash below

34 % the question of washing itself does not arise. No mention of the receipt

coal quality is made in the FSA since the yield is strongly dependent on the

parent coal quality. The data for the past three years on receipt coal

indicates that the ash content is just 33.4 to 34.0 % so the question of

whether washing is required in the first place needs to be critically reviewed.

It is agreed that if ash exceeds 34 % anywhere down the time line, washing

is mandatory as per GoI requirements.


37

7. Decrease in ash content: Decrease in ash content guaranteed by the

washery is not indicated in the agreement. Only cut-off limits of ash are

specified.

8. Moisture in washed coal: Gains from improved quality due to reduced ash

must not be lost in increased moisture in the coal. The effect of 1 %

increased moisture on boiler efficiency is much higher than 1 % increased

ash because the latent heat is lost in the form of wet flue gas losses in the

boiler.

9. GCV increase vis-à-vis the mass yield: The increase in GCV of the

washed coal must be commensurate with the loss of mass of coal.

The theoretical relationship between GCV (kcal/kg) and yield (%) is given as follows:

10. The Washery has come out with experimental formulae of yield versus final

coal quality as per the following relationship for an initial coal quality of 34 %

ash:

Yield (%) = A0 + A1 x (Final required ash content) Where the constants are as follows:


38

A0 A1 R2

Test 1 -6.9933 2.9507 0.9698

Test 2 -14.349 3.0096 0.8899

Test 3 -10.469 2.9683 0.947

According to these the yield (%) for a raw coal ash of 34 % is given by:

Final Ash, %

Yield 1 (%)

Yield 2 (%)

Yield 3 (%)

28 75.63 69.92 72.64

29 78.58 72.93 75.61

30 81.53 75.94 78.58

The yield appears to be on the lower side. The relationship between experimental yield and ash in washed coal is given in Figures 58-60.

11. A detailed simulation (in EXCEL) is undertaken considering all factors [like

parent coal cost, parent coal TL, parent coal freight, washed coal freight,

washing charges, washed coal TL, GCV of parent coal, GCV of washed coal,

etc.] for the improvement in GCV vis-à-vis the yield, in the present situation.

As the coal GCV is higher and quantity of washed coal is lower, the

transportation cost is reduced but the coal cost increases and the cost of

washing gets added to it. The simulation indicates that the energy cost

Rs./Gcal is highly sensitive to both yield and to GCV of washed coal (for a

given GCV of raw coal).

The following three simulations are performed:

GCV of washed coal as computed by Monnet in their bill: 5007.5 kcal/kg and parent coal: 4368.7 kcal/kg


39

If the GCV is as computed by Monnet, then the washed coal becomes economical to use for a yield of above 82.5 %. If the yield exceeds 82.5 %, then the washed coal is economical for usage considering all costs.

GCV of washed coal as computed at TPS end: 4712.2 kcal/kg The GCV of washed coal computed at the TPS end is 4712.2 kcal/kg for which the simulation is done.

If the GCV of coal is 4712 kcal/kg then the washed coal (sloping line above) never becomes cost economical even at a yield of 90 %.

Intermediate GCV of washed coal of 4800 kcal/kg An intermediate GCV of washed coal of 4800 kcal/kg is considered only for the purpose of illustration.


40

At an intermediate GCV of 4800 kcal/kg then the washed coal becomes economical only at a yield of around 89 %.

12. Validation of the process yield: A flat overall yield is 79-80 % has been

considered for the process. The present yield is presently uneconomical giving

a cost upgradation. Recommendation: Keeping in mind the that the

density differences between coal, mineral matter and ash are low, the

process yield for various input coals must be got validated by an

independent third party agency such as CPRI or CFRI, etc..

13. Validation of the process energy efficiency map: Presently the energy

efficiency of the process is 86-87 %. The overall energy efficiency function of

the process must be specified along with the initial ash in parent coal and

final ash in washed coal to ensure that the process is energetically and

economically justified. Recommendation: The process energy efficiency

map along with economics for various input coal GCVs and washed

coal GCVs must be got validated by an independent third party

agency such as CPRI or CFRI, etc..

14. Telemetering system: Recommendation: The telemetering system for

on-line information of the in-motion weighbridge readings of receipt coal

received and beneficiated coal loaded at PSPCL TPS is essential and must be

implemented at the earliest to provide authentic tamper proof data on transit

loss and total weighments of both receipt coal and washed coal dispatched at

the Washery.


41

15. Recommendation: POL at the loading site of washed coal may be brought

fully into the scope of Monnet which is presently shared 50:50 by Monnet and

PSPCL.

16. Recommendation: The coal loaded into the rakes must have equilibrium

moisture. This is to ensure that TL does not occur due to non-equilibrium

moisture in coal evaporating and coal coming back to equilibrium moisture.

Moisture related TL must be in the scope of the washery.

17. Recommendation: The cost of coal supplied through the washery process

which is higher by almost 22-28 % to coal from other sources, may be

reviewed. Apart from the clauses on quantity of washed coal delivered, the

quality process may be reviewed. The coal lifted by the washery must be

specified in terms of GCV, 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 (parts per million).

18. Dipika-ABCL Washeries: In the case of raw coal lifted by Dipika-ABCL

washery from SECL only the grade is specified and the UHV is not specified.

The grade is mentioned as F grade. The band width of UHV of F grade is

varying between 2400 to 3600 kcal/kg, implying that there is almost 1200

kcal/kg difference between the band limits of the F grade. In F grade band

variation of ash is 4 %.

5.4 Agreement with liasioning agent

The payment to the Liasion agent is already discussed under TL. Recommendation: The transit loss may be fully included in the scope of the liasioning agent. The payments to the Liasion agent must be linked with the actual coal cost (landed price: coal +freight) , ( i.e., Rs. 30/t x coal weight for the rake )for every 1 % TL.

6.0 METHODOLOGY OF COMPUTING THE COST OF FUEL BEING PASSED ONTO THE CUSTOMERS AS AN UNCONTROLLABLE COST The following elements are being passed onto the customer as the uncontrollable coal cost:


42

At present there is no upper limit or cap on demmurages, POL & stones.

7.0 COMPARISON OF FUEL PARAMTERS WITH NATIONAL /INTERNATIONAL STANDARDS. The station heat rate (SHR) depends on the following factors:

Coal quality: SHR is strongly dependent on the GCV of receipt coal. If the GCV is high, then the SHR & auxiliary power will be low. National average coal CGV is around 3200-3500 kcal/kg. In PSPGCL the coal quality is of the order of 4400 kcal/kg which is very much superior to the national average. Hence the loadability and performance can be expected to be better.

Vintage of the unit: The units at GGSSTP are of BHEL (Combustion Engg. Design) boiler and BHEL (Siemens) turbine and aged around 25-27 years old. Siemens turbines have good loadability and efficiency and can be operated with good reliability at near full load.

In the case of GNDTP, the units are of old design and underwent R & M. Older units of < 210 MW have higher heat rates as compared to national standards (CERC) which have been fixed at 2500 kcal/kWh.

Effect of ageing : The ageing effects of boilers and turbines can be reversed or overcome to a large extent through equipment specific renovations and replacement under capex such as replacement of turbine HP, IP & LP modules, HP heaters, BFP cartridges, C & I ungradation, condenser tube nests, CW pumps, etc. In the case of GGSSTP very little renovation at an equipment level has happened over the years.

Promptness of carrying on capital overhauls (COH) once in five years and annual overhauls (AOH) once annually has an impact on the SHR.

Table 34 gives a list of SHR of stations of comparable age. In view of the above, we are of the opinion that the SHR can be restored to the 2500 kcal/kWh level with operational optimization, intensive interventions in R & M

Cost of coal

Cost of freight

Cost of fuel oil

Coal Handling contract

Demmurage Charges

Siding Charges

Penal Overloading

Commission to agents

Payment to railway staff

Derailment Charges

Other Coal related cost

Transit loss

Picked stone

Mill Reject


43

at the equipment levels and prompt annual/capital maintenance. Since, over the past years equipment specific renovations have not happened, the SHR is above the 2500 kcal/kWh mark.

8.0 CONCLUSIONS

The main conclusions of the fuel study are:

While the audit of quantities of coal are in order, a drop in GCV is observed between the receipt and bunkered quantity beyond the normal deterioration. The process needs to be improved to minimize the drop in the GCV of receipt coal and bunkered coal to 150 kcal/kg. A number of measures have been suggested for the coal yard and for the monitoring process of coal quality.

The process of measurement of GCV needs to be made uniform for receipt and bunkered coal through adding the surface moisture effect @145 kcal/kg for 1 % to the GCV determined on equilibrated basis through a bomb calorimeter.

In the case of loading end the consideration for inclusion of surface moisture effect in the GCV which is presently being determined only through equilibrated basis may be taken up with appropriate authority.

In cases where the payment is based on quality measurement at the TPS end only, random and periodic samples need to be sent to third party truly independent labs under committee supervision.

The concept of the fuel basket must be used to report the receipt coal GCVs, i.e., source wise GCV must be provided.

The quantities and quality of fuel oil audited is in order.

The reporting period for coal consumption and reconciliation of stock must be a month.

The overall energetics of the washed coal vis-à-vis the benefits are presently not economical. Presently the washed coal is expensive by almost 22-28 % as compared to the raw coal. The washed coal must be cost economical in addition to the environmental obligation to not transport coal above 34 %. A validation of the process 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. In the case of Dipika washery of SECL, the band width of UHV of F grade is varying between 2400 to 3600 kcal/kg, implying that there is almost 1200 kcal/kg difference between the band limits of the F grade.


44

The sampling frequency of the coal lifted by washeries must be on the basis of similar to rake sampling, i.e., around 350 kg per 4500 tonnes, i.e., 80 ppm (parts per million). Hence, for all coal lifted by the washery the GCV must be specified to verify the overall energetics of the process.

Considering the national trends in transit loss, the TL fixed for stations with similar transit distances, high GCV of coal by almost 1200-1500 kcal/kg as compared to other states a TL of 0.8 % is recommend for CIL coals excluding Penam. Since the stations are getting majority of coals 60-90 % from Penam, TL is applicable only to CIL coals and washed coals.

In the case of washed coals, TL on account of moisture loss must be to the account of Washery since they have to load coals after equilibrium is reached.

The transit loss may be fully included in the scope of the liasoning agent by linking it up with the coal cost (Rs. 30/t for 1 full rake of 4000 t for 1 % loss).

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

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

The unloading infrastructure at the three stations needs to be comprehensively reviewed to keep in tune with the increasing of the wagon capacity by 20 % (with further increase to 74 t wagons in the offing) as well as reduction in unloading time by 30 % (7 h as compared to 10 h earlier). The upgradation 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 or purchase a new.

POL can be minimized by higher level of vigilance from the Liasion agent as well as the PSPCL officials at the sending end.

Since loading is in the scope of Monnet, POL may be brought into the scope of Monnet (presently it is 50/50 between Monnet and PSPCL).

The GGSSTP units are capable of operating at SHR of 2500 kcal/kWh which is achievable during 2012-2013 through operational optimization and implementing a few medium term measures as immediate measures. The GNDTP units are capable at SHR of 2825 kcal/kWh which is achievable during 2012-2013 through operational optimization measures.

An investment of Rs. 8.58 crores is anticipated for investment into unloading infrastructure, coal quality and quantity measurement upgradation and tracking of rail positions.


45


46

REFERENCES

[1] Director (RD&T), Central Mine Planning & Design Institute Ltd., Government of India Ministry of coal & mines, Gondwana Place, Kanke Road, Ranchi - 834 031 Telephone:(0651) 2230040, (0651) 2231850/2230347/2230827 (PBX), Fax (0651) 2231851, 2231447 ; E- Mail : [email protected]

[2] GOI (1986), The Gazette of India (Extraordinary), Part II, Section 3 (ii), No. 271,July 4, 1986, Govt. Of India, New Delhi- Department of Coal, Ministry of Energy Notification, Controller of Publications, New Delhi-110054, pp. 1-34. [3] Based on actual testing of coal for GCV at CIMFR, Nagpur and computed UHV for a large number of samples and large number of mines from CPRI data base. [3] Banarjee D., Hirani, M. and Sanyal, S.K. (2000), Coal- quality deterioration in a coal stack of a power station, Applied Energy Vol.66, pp. 267-275. [4] M.Siddhartha Bhatt & B.H.Narayana (2005), Towards the benchmarking of gross unit heat rate in coal fired thermal power plants, The Journal of CPRI, Vol. 1, No. 2, March 2005, pp. 9-18. [5] Das B. and Hucka V.J., Control of Spontaneous Combustion of Coal Through an Analysis of its Mechanism and the Affecting Factors, Society of Mining Engineers of AIME, Preprint # 86-62, Presented at the SME Annual Meeting, New Orleans, LA, March, 1986. [6] Rees 0. W., Coolican F. C., Pierron E. D. and Beeler C. W. , Effects of outdoor storage on Illinois steam coals, Division of the Illinois State Geological Survey, John C. Frye, Chief Urbana, Circular No.313, 1961. [7] MERC (Maharashtra Energy Regulatory Commission) tariff order Case No. 16 of 2008 in the matter of Truing up process for Maharashtra State Power Generation Company Ltd.‟s (MSPGCL) Generating Stations for FY 2005-06, FY 2006-07 and FY 2007-08 based upon Appellate Tribunal‟s Judgment in Appeal No. 86 and 87 of 2007 and CPRI Report and Provisional Truing up for FY 2008-09 page Nos. 84-85. [8] Optimal design of stock pile, Electrical India, Sep 2007, pp.144-149 [9] Annual Performance Review for FY 2009-10 & Aggregate Revenue Requirement for FY 2010-11 For Torrent Power Limited Case No. 988/2010 31st March 2010, GERC, p.31. [10] HERC order dated 03.05.2011 regarding petition filed by HPGCL seeking review of the order dated 16.04.2010 in the matter of determination of HPGCLs tariff for FY 2010-11.



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[11] 33rd Report of PAC (Public accounts Committee) report of 2006-07 No. 33 titled „Injudicious waiver of demurrage charges by ministry of railways‟ submitted to 14th Loka Sabha, PAC No. 1818. [12] Coal Movement on Indian Railways, Chapter 3, www.cag.gov.in/html/reports

/railways/2004_9 /chapter3.htm, pp.11/12. [13] Report of the committee constituted to look into the adequacy of unloading infrastructure at thermal power stations Government of India, Ministry of Power, Central Electricity Authority (O. M. Division), 30.10.2008. [14] Bhatnagar A., Gupta R., Pappu S., Dutta G. (2001), Mathematical Modeling for Demurrage Reduction in Coal Transportation for an Indian Thermal Power Plant, Capital One Services, Inc, 15000 Capital One Drive, Richmond, VA 23238, USA

[15] GoI, Gazette Notification (GSR 560(E) & 378(E), dated September 19, 1997 and June 30, 1998, Ministry of Environment & Forests, Govt. of India.

http://www.cag.gov.in/html/reports

Annex 1 CPRI Report – PSERC

48

Annex– 1

(Figures, Graphs & Photographs)


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Annex – 2

(Tables and Charts)


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Table 1: Process of received coal sampling at the three PSPCL plants

RAKE WISE RAW COAL ANALYSIS

The rake-wise coal analysis is being done under supervision of Chief Chemist, Coal Lab. at the PSPCL TPS.

PSPCL sends the rake-wise analysis results pertaining to companies within stipulated period after collection of coal samples.

WASHED COAL (MONNET) SAMPLING & ANALYSIS

The rake-wise washed coal sampling and sample preparation work is being carried out by PSPCL under supervision of PSPCL/company staff as per work order received from respective companies.

Coal sample of each Rake of unloading end is being tested at PSPCL jointly by PSPCL & company staff.

CIL RAW COAL SAMPLING AND ANALYSIS

As per new FSA the rake wise CIL coal sampling, sample preparation & testing work is being carried out by CIL at Loading end under supervision of PSPCL Party, i.e. M/s CIS in CCL Laboratory at loading end. PSPCL party sends the loading end Analysis statements respective power stations.

COAL RECEIVED FROM CAPTIVE MINE (PANEM)

Coal received from PANEM collieries is being tested at PSPCL Laboratory in the respective TPS.

REFEREE COAL SAMPLES ( PSPCL)

The referee coal samples are deposited to designated laboratory as per requirement. The results of designated laboratory are binding to both parties.


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Table 2: Rake wise sampling procedure for receipt coal at the three PSPCL plants.

RAKE-WISE COAL SAMPLING PROCEDURE FOR RAW COAL/RECEIPT COAL

1. The rake-wise coal sampling is being done mainly as per IS: 436 (Part-I), (Sec-I) – 1964 and coal agreements.

2. Selection of wagons is being done as per Random Table (25 % wagons out of 58 wagons rake i.e. 15 wagons)

3. Sample is collected at one point from the loaded wagon. 4. The point for collection of sample is either at the centre of the wagon or

either side of the wagon to be chosen one after the other from the first three scheduled wagons and are repeated for subsequent selected wagons. Top layer of about 200 mm depth at the point of sampling is scrapped for an area of 1 meter x 1 meter and the sample is collected from there up to a depth of 0.5 (half) meter.

5. Total 15 samples containing 350 kg are brought to the coal sample preparation room.

Table 3: Procedure for sampling of bunkered coal.

(Bunkered coal/conveyer belt coal/fired coal)

SAMPLING PROCEDURE

1. Coal samples are being collected from running coal Belts bi-hourly in each shift. Approximately 20 kg coal sample is being collected from running coal belts every time. About 350 kg coal sample is being collected during the day.

2. Coal samples are being tested next day for total moisture testing in lab. 3. Next day collected Conveyer belt coal sample is first passed through jaw

crusher it is then mixed properly and two times quarter coning is being done. then into the primary crusher and crushed to 12.5 mm size.

4. One part of the reduced sample (3 mm size) is sent to laboratory for Total Moisture (T.M.) analysis and other part is grinded to 72 micron size as shown below.


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Table 4: Specifications of belt weighers

Sl. No.

Particular of Belt weighers

01 Micro processor based electronic belt weighers with communication facility to continuously transmit the data to a control room as well as local reading.

Type: Electronic , Multi-idler type

Location: On Conveyor of width up to 1.6 m

Belt speed 1-4 m/s

02 Coal properties and capacity

Bulk density 0.8 to 1.2 t/m3

Capacity 1300 t/h

03 Duty conditions

Moisture yes

Dust yes

Rain and high RH yes

04 Accuracy: 0.25 % or better of actual flow rate (dynamic). Weigh

idler deflection less than 0.025 mm at full load.

05 Reliability index: SAIDI (system average interruption duration index): 48 hours/year or better

SAIFI (system average interruption frequency index): 2 times/year or better

06 Overload capacity: up to 25 % with 100 % overload protection

07 Capacity range of accuracy:

0 to 100 %

08 Electronic components:

electronic digitiliser/monitors, cable, totaliser, sub-totaliser, techno generator, printer, Transmission of the

impulse of flow rate as well as total quantity conveyed to control room through communication media. Fully digital

with microprocessor and battery back-up memory.

09 Mode of weighment primary

sensors:

Super precision stainless steel strain gauge load cell applied in tension for highly accurate load measurement. Hermetically enclosed measuring device, compact designed, suitable for all customary belt widths.

Speed measurement: Brushless digital tacho provides accurate measurement of speed.

10 Outputs: Electronic signals to control room and to local instrument display. Status Annunciator for set points. Print out weight, total and error reports.

11 Provision for zero setting on empty belt and further calibration. Special electronic calibration facility for frequent calibration checks without handling standard weights.

12 Special trunion bushes to absorb normal shocks and transverse forces.

13 Fully automatic tare and span calibration.

14 Self-checking diagnostics for fault indications.


83

Table 5: Grades of steam/thermal/non-coking Coal

Grade Useful Heat Value (UHV)

(kcal/kg)

UHV= 8900-138(A+M)

Corresponding

Ash % + Moisture %

at (60 % RH & 40 O C)

Gross Calorific Value GCV (kcal/ kg)

(at 5 % moisture level)

A Exceeding 6200 Not exceeding 19.5

Exceeding 6454

B Exceeding 5600 but not exceeding 6200

19.6 to 23.8 Exceeding 6049 but not exceeding 6454

C Exceeding 4940 but not exceeding 5600

23.9 to 28.6 Exceeding 5597 but not exceeding. 6049

D Exceeding 4200 but not exceeding 4940

28.7 to 34.0 Exceeding 5089 but not Exceeding 5597

E Exceeding 3360 but not exceeding 4200


F Exceeding 2400 but not exceeding 3360

40.1 to 47.0 Exceeding 3865 but not exceeding. 4324

G Exceeding 1300 but not exceeding 2400


Ref: coal.nic.in Table 6: Allowable bandwidth of the UHV & GCV of coal purchase in a given grade.

Grade UHV(kcal/kg) GCV(kcal/kg) Ash, %

Lower limit

Upper limit

Lower limit

Upper limit

Lower limit

Upper limit

A 6200 - 6454 - - 14

B 5600 6200 6049 6454 14.1 18.3

C 4940 5600 5597 6049 18.4 23.1

D 4200 4940 5089 6049 23.2 28.5

E 3360 4200 4324 6049 28.6 34.5

F 2400 3360 3865 4324 34.6 41.5

G 1300 2400 3113 3865 41.6 49.5


84

Table 7: Effect of long term storage of coal -heat generated in stock piles.

Stage Reaction Weight Temperature (°C)

Heat generate

d (kcal/kg

)

Adsorption Water Adsorption Gain Any temp. 2-25

Chemisorption Oxygen absorbed to form peroxides

Gain 70 2-16

Peroxygen decomposition

•Disintegration of peroxygen • Release of water from coal

Loss 70-150 4-18

Oxycoal formation

Formation of stable oxygen complexes

Gain 150-230 6-27

Source: Das B. and Hucka V.J. (1986)


85

Table 8: Monthly raw coal GCV (based on conversion of UHV) and Fired coal or bunkered coal data GCV (in kcal/kg) for FY 2009-2011. Basis: 600 kcal/kg per year according to Banarjee et al. (2000).

GGSSTP, Ropar

Month Days of autonomy

Theroretical drop kcal/kg




Apr-09 9.37 15.40 4835.4 3995 840.4

May-09 6.53 10.74 4828.3 3992 836.3

Jun-09 6.02 9.90 4867.1 3985 882.1

Jul-09 4.92 8.09 4874.2 3980 894.2

Aug-09 5.10 8.39 4926.6 3974 952.6

Sep-09 7.35 12.08 4935.6 3950 985.6

Oct-09 4.53 7.44 4898.1 3953 945.1

Nov-09 11.52 18.94 4909.1 3945 964.1

Dec-09 15.32 25.19 4947.9 3955 992.9

Jan-10 16.38 26.92 4920.7 3960 960.7

Feb-10 16.47 27.08 4943.4 3957 986.4

Mar-10 19.22 31.59 4909.7 3959 950.7

Apr-10 20.64 33.93 4928.5 3951 977.5

May-10 21.12 34.72 5007.4 3953 1054.4

Jun-10 22.48 36.96 5008.0 3947 1061.0

Jul-10 20.42 33.57 4938.8 3948 990.8

Aug-10 25.06 41.19 4896.8 3953 943.8

Sep-10 33.31 54.76 4897.5 3955 942.5

Oct-10 36.33 59.72 4928.5 3952 976.5

Nov-10 34.19 56.20 4900.7 3956 944.7

Dec-10 31.29 51.43 4896.2 3949 947.2

Jan-11 31.45 51.69 4899.4 3947 952.4

Feb-11 25.27 41.54 4882.6 3948 934.6

Mar-11 26.58 43.70 4970.5 3944 1026.5

Apr-11 22.51 37.00 4951.8 3936 1015.8

May-11 23.89 39.28 4974.4 3939 1035.4

Jun-11 27.20 44.70 4923.3 3937 986.3

Jul-11 24.80 40.76 4898.8 3935 963.8

Aug-11 23.05 37.89 4911.0 3942 969.0

Sep-11 26.86 44.16 4958.2 3940 1018.2

Oct-11 22.70 37.31 4916.2 3938 978.2

Nov-11 24.60 40.43 4907.2 3949 958.2

Dec-11 24.07 39.57 4909.7 3950 959.7

Jan-12 18.49 30.39


86

Table 9: Annual raw coal (based on conversion of UHV) fired or bunkered coal GCV data for FY 2009 to 2011 for the three stations.

GGSSTP, Ropar

Year




2009-2010

4900.7 3967 933.7

2010-2011

4931.7 3950 981.7

2011-2012

4929.1 3941 988.1

GHTP, Lehra Mohabat

Year




2009-2010 4913.6

4077 836.6

2010-2011 4734.6

4022 712.6

2011-2012 4750.1

3932 818.1


87

Table 10: Analysis of drop in GCV in coal yard in other utilities.

Sl. No.

Utility ERC Year Drop in GCV* (kcal/kg)

Remarks

01 Koradi TPS MERC 2008 30-150

02 Koradi TPS MERC 2011 206

03 Khaperkheda TPS

MERC 2008 30-350

04 Khaperkheda TPS

MERC 2011 0

05 Chandrapur TPS MERC 2008 350-450

06 Chandrapur TPS MERC 2011 179

07 Nasik TPS MERC 2008 800

08 Nasik TPS MERC 2011 102

09 Bhusawal TPS MERC 2008 975

10 Bhusawal TPS MERC 2011 295

11 Paras TPS MERC 2008 526

12 Paras TPS MERC 2011 -3 to 684

On the high side

13 Parli TPS MERC 2008 559

14 Parli TPS MERC 2011 -210 Achieved as a target parameter by this TPS

15 Tata power MERC 2011 ±200 ±100

Air dried basis 15 % moisture basis

16 Hindusthan Zinc - 2008 ±100

17 OPG power 2012 ±150

*Between receipt coal and bunkered coal.


88

Table 11: Methods of reduction of coal yard losses.

Sl. No.

Solutions for Management of coal in the coal yard include stockpile management

01 Stock movement: Direct feeding of coal received from captive mines and washery from the wagon tippler to bunker is always ideal. When this is not feasible, the first in first out (FIFO) principle which has been universally recommended to minimize coal yard losses may be followed. Each compacted stockpile should be identified based on receipt date to determine first out sequence.

02 Coals which are mined earlier than 1-6 months are less susceptible to spontaneous ignition. It may be ensured that the coals which are immediately removed from the earth are not loaded onto the wagons.

03 Water spraying and fogging to avoid coal losses due to spontaneous ignition must be done only during emergency. During summer season the process of spontaneous combustion accelerates. To control spontaneous combustion, sprinkling of water is to be carried out at the hot spots. Sometimes these hot spots can also be removed with loader. Use of water sprays is only to be taken up as an emergency measures. Instead the creation of hot spots or spontaneous burning situations must be eliminated by high compaction.

04 Fogging nozzles are recommended to be installed at various points in the CHP for dust suppression and minimize windage losses. Use of fogging nozzles for temperature control is not generally recommended except in emergency. Fogging nozzles are installed in MSPGCL power plants like Chandrapur TPS.

05 Monitoring of coal stockpiles: The monitoring is required to be done at least once in a day to identify hot spots or spontaneous combustion and its elimination.

06 Stockpile shapes or heaps: The stock piles must be tredpziodal and not conical in shape where the surface areas exposed is too much. Wind socks may be installed to determine direction of the wind. The Stockpile must be oriented for air to strike the width and not length. Good and bad quality coal must not be blended but must be stacked separately. The blending (if at all) must be at the bunkering belt.

07 Compaction: Coal to be stacked at height of 3-10 m, levelled and compacted. Compaction must be done in levels of 1.5 m Carpetization of coal to be minimized. Compaction inhibits entry of air and water into the stack. Top surface must be sloped for water drainage. Regular compacting of the coal & formation of the trapezoidal heaps is to carried out with the help of coal compactors instead of bull dozers to control the oxidation & spontaneous combustion of the coal. The use of compactors will result in avoiding air pockets and spontaneous combustion. When it rains water does not percolate through compacted coal. Suppliers of Compactors: Marsmann India Ltd., Caterpiller Industries, Multitech Services Ltd., L & T, etc.

During rainy season proper channels are to be made for drainage of rain water from coal yards in order to avoid coal loss due to flowing out in the


89

form of coal slurry.

08 Since washed coal is costlier fuel and it has tendency to flow away due to heavy rains, this coal is properly stacked and covered with tarpaulins during rainy season to avoid ingress of rainy water and moisture addition.

09 Strict security of coal stock to avoid pilferage. The security arrangements need to periodically reviewed and checked to ensure safety of the stocks.

10 Competence skill development is required to be imparted to the personnel involved in coal heap compaction.

11 Quality management system: Development of quality management system with written procedure for coal yard management and stockpile maintenance.

12 Professional help in stockpile management from agencies like NTPC R & D.


90

Table 12: Procedure for sample preparation of received coal at the three PSPCL plants.

COAL SAMPLE PREPARATION

1. Coal sample is first passed through the primary crusher and crushed to 12.5 mm size; it is then mixed properly and two times quarter coning is done.

2. The coal sample is then passed through secondary crusher and crushed to 3.0 mm size; it is then mixed properly and reduced to 1.5Kg by quarter coning.

3. The coal sample is then pulverized and passed through 212 micron sieve. Again quarter coning is done and packed in two polythene bags (250 gms each).

4. These two coal sample packets being jointly sealed and signed by PSPCL and respective company representatives. One coal sample is being sent to PSPCL laboratory for analysis. Referee coal sample kept in joint custody of PSPCL and respective company representatives.

Flow chart is given below.

Gross sample (approx 350 kg)

Crush to pass through 5 cm

Coning and quartering twice

90 kg (approx)

Crush to pass through 12.5 mm

Coning and quartering twice 22 kg (approx)

Crush to pass through 6 mm (approx)

Coning and quartering once

11 kg (approx)

Crush to pass through 3 mm (approx)

Coning and quartering successively to obtain 1.5 kg-2 kg

Grind to pass 72 mesh (212 micron)

Divide it into 2 equal parts (final samples)


91

Table 13: Procedure for testing of receipt coal

Method of testing receipt of Raw Coal at PSPCL stations

ANALYSIS: - Analysis is done as per IS 1350 (part-I)-1984. The testing procedure in brief is as under:- 1) Total Moisture:- Apparatus: - Ventilated drying oven in which a constant and uniform temperature of 108 oC + 2oC can be maintained. Procedure:- 10g of crushed coal (3mm size) is dried in an oven at a temperature of 108 oC + 2 oC for 1.5 to 3 hours until weight becomes constant. Total moisture % age is calculated from the loss in weight as detailed below:- Wt. of Dish = W1 Wt. of Dish+ sample = W2 Wt. of Dish and sample after drying = W3 Total moisture (%) = W2-W3 X 100

W2-W1

2) Determination of Moisture (ADB):- Apparatus: - Ventilated drying oven in which a constant and uniform temperature of 108 oC ±2oC can be maintained. Procedure:- About 1 to 1.5 gm of final sample of grinded coal is uniformly spread in the silica or glass dish and placed in the hot air oven in uncovered position at 108 oC ± 2oC till there is no further loss in mass. This normally takes 1 to 1.5 hours. Loss in mass due to drying as a % age of the total mass of the sample is the % age air dried moisture in the sample. Moisture % age is calculated from the loss in weight as per below formula:- Wt. of Dish = W1 Wt. of Dish + sample = W2 Wt. of Dish and sample after drying = W3 Air Dried Moisture (%) = W2-W3 X 100

W2-W1 3) Determination of Ash (ADB):- Apparatus:- Muffle furnace capable of providing 815 oC + 10 oC temperature uniformly, silica / glass dish. Procedure:- 1 gram of final sample is taken which is placed in the uncovered dish which is put into the furnace at room temperature, then temperature is raised to 500

oC in 30 minutes and 815 ±10 oC in a further 30 to 60 minutes time. This temperature is maintained for 60 minutes. Ash % by mass = 100 X M3 –M1 M2 – M1 Where M1 = mass in g of dish M2= mass in g of dish and sample M3= mass in g of dish and ash 4) Determination of Volatile Matter(ADB):-


92

Apparatus: - Cylindrical crucible with a well fitting lids both of fused silica. Electrically heated muffle furnace in which a zone of constant and uniform temperature of 900+ 10 oC can be maintained. Procedure: - 1gm of sample is heated in the absence of Air at 900 oC + 10 oC for a period of 7 minutes. Oxidation has to be avoided as far as possible. % volatile matter:- = 100(M2 –M3) _ MO M2-M1 Where Mo = % of moisture in the sample on dried basis M1 = mass in g of empty crucible + lid M2 = mass in g of crucible +lid + sample before heating, and M3 = mass in g of crucible +lid + sample after heating. Equilibrated moisture (moisture at 60 % relative humidity and 40 oC):- About 5 grams of final sample of coal is taken in a beaker of 100ml capacity. 20ml of hot water is poured on the sample. The beaker is then swirled to wet the coal. The contents are boiled very slowly for about 15minutes. Then the water is filtered using a qualitative filter paper. About 1.5 g of the wet coal is taken which is spread out in uniformly thin layer in a glass dish. The dish is placed in a desiccator, the bottom portion of which is half filled with a solution of Sulphuric acid (Relative density 1.284 at 30oC) to give a relative humidity of 60 % at 40 oC. The sample is kept in this condition for 72 hours After 72 hours, the dish is removed from desiccator and analysed for moisture at 108 oC+ 2 oC for 1 to 1.5hours in the hot air oven. Equilibrated moisture: - = Loss in mass on drying X 100 Mass of equilibrated sample Reporting of results:- Equilibrated Ash: - = 100- equilibrated moisture X Air dried ash 100- Air dried moisture Equilibrated volatile matter: - = 100- equilibrated moisture X Air dried volatile matter 100- Air dried moisture USEFUL HEAT VALUE: Case- I: - When eq. moisture is more than 2% and Eq. VM is more than 19%.

UHV (kcal/kg) =8900-138[A+M] Case- II: - When eq. moisture is less than 2% and Eq. VM is less than 19%.

UHV (kcal/kg) = [(8900-138 (A+M)] -150(19 x VM) Coal gradation on the basis of UHV:- Grade UHV A >6200


93

B >5600 up to 6200 C >4940 up to 5600 D >4200 up to 4940 E >3360 up to 4200 F >2400 up to 3360 G >1301 up to 2400 Ungraded <1300 Coal gradation on the basis of Ash % (air dried basis):- Grade Steel- I Up to Ash 15 % Grade Steel- II >15 %up to<18%

W-I >18% up to 21% W-II >21% up to 24% W-III >24% up to 28% W-IV >28% up to 35%


94

Table 14: Procedure for sample preparation of bunkered coal.

BUNKERED COAL/CONVEYER BELT COAL SAMPLE PREPARATION PROCEDURE

PREPARATION OF LABORATORY SAMPLE Gross Sample from RC Feeder Belt 90 kg. (Approximate)

Crushed to Pass 12.5 mm

Conning and quartering twice

22 kg. (Approximate)

Crushed to Pass through 6 mm Approximate

Conning and Quartering once

11 kg. (Approximate)

Crushed to Pass 3 mm (Approximate)

Coning and Quartering successively to obtain 1.5 kg-2 kg.

Grinded part to Pass 72 mesh (212 micron).

Grinded sample thus prepared is sent to Coal Testing Lab for its testing in which Total Moisture, ash, Air dried Moisture, & GCV are determined.


95

Table 15: Procedure for testing of bunker coal samples.

BUNKERED COAL/CONVEYER BELT COAL TESTING PROCEDURE

Testing Methods (Proximate Analysis) ANALYSIS: -As per IS 1350 (part-I)-1984. The testing procedure in brief is as under:- 1) Total Moisture:- Apparatus: - Ventilated drying oven in which a constant and uniform temperature of 108 o C ±2oC can be maintained. Procedure:- 10g of crushed coal (3 mm size) is dried in an oven at a temperature of 108 oC ± 2 oC for 1.5 to 3 hours until weight becomes constant. Total moisture % age is calculated from the loss in weight as detailed below:- Wt. of Dish = W1 Wt. of Disch+ sample = W2 Wt. of Dish and sample after drying = W3 Total moisture (%) = W2-W3 X 100

W2-W1

2) Determination of Moisture (ADB):- Apparatus: - Ventilated drying oven in which a constant and uniform temperature of 108 oC ± 2oC can be maintained. Procedure:- About 1 to 1.5 gm of final sample of grinded coal is uniformly spread in the silica or glass dish and placed in the hot air oven in uncovered position at 108

oC± 2oC till there is no further loss in mass. This normally takes 1 to 1.5 hours. Loss in mass due to drying as a % age of the total mass of the sample is the % age air dried moisture in the sample. Moisture % age is calculated from the loss in weight as per below formula:- Wt. of Dish = W1 Wt. of Dish + sample = W2 Wt. of Dish and sample after drying = W3 Air Dried Moisture (%) = W2-W3 X 100

W2-W1 3) Determination of Ash (ADB):- Apparatus:- Muffle furnace capable of providing 815 oC ± 10 oC temperature uniformly, silica / glass dish. Procedure:- 1 gram of final sample is taken which is placed in the uncovered dish which is put into the furnace at room temperature, then temperature is raised to 500

oC in 30 minutes and 815 ±10 oC in a further 30 to 60 minutes time. This temperature is maintained for 60 minutes. Ash % by mass = 100 X M3 –M1 M2 – M1 Where M1 = mass in g of dish M2= mass in g of dish and sample M3= mass in g of dish and ash


96

4) Volatile Matter (VM) %:- Weigh a dry clean crucible with lid. Into the crucible

weigh 1.0 gm coal sample. Insert the crucible with lid along with stand into the muffle furnace and heat at 900 ± 10 oC for seven minutes in closed door condition. Remove crucible from muffle furnace, cool the crucible first on metal plate for 5 minutes and then in a desiccator for 10 minutes. The volatile matter Percentage of the sample= (100(M2-M3)/M2-M1)-M Where, M = Percentage of moisture in the sample on air dried basis.

M1 = Mass in gm of empty crucible and lid; M2 = Mass in gm of empty crucible plus lid and sample before heating; and M3 = Mass in gm of empty crucible plus lid and sample after heating;

5) Fixed Carbon (FC) %: FC= 100- (Moisture + Ash + Volatile matter)

DETERMINATION OF GCV BY BOMB CALORIMETER In this method the Gross Calorific value of Coal is found directly by firing a specific amount of coal (≈1 g) using a Bomb Calorimeter (Model-Parr-6200 isoperibol) in its controlled environment. The heat so produced during firing determines the calorific value of coal automatically.


97

Table 16: List of neutral third party laboratories for testing of coal in Northern India.

Sl. No.

Name of Laboratory Remarks

01 CIMFR, Digwadih Campus, Ranchi Unit P.O. Namkum Ranchi-834010, Jharkhand. Tel: +91-0651-2462237/2461392/2461382/2461387 FAX : +91-0651-2462237 e-mail : [email protected] / [email protected]

02 CIMFR, Digwadih Campus, Nagpur Unit 17/C Telenkhedi Area, Civil Lines Nagpur-440 001, Maharastra Tel: +91-0712-2510390, 2512190 Fax : +91-0712-2510390

e-mail : [email protected]

03 CIMFR, Digwadih Campus, Bilaspur Unit 27, Kohli Chowk, Post Box : 41 Bilaspur - 495001 Chattisgarh Tel: +91-07752-271450 Fax: +91-07752-271450 e-mail : [email protected]

04 NTPC, NETRA, Research and Development Centre 8A, Sector-24, Noida - 201301 Distt.-Gautam Budh Nagar, Uttar Pradesh

05 National Physical Laboratories, Dr.K.S.Krishnan Marg, New Delhi-110012

06 Shriram Institute for Industrial Research, 19, University Road, New Delhi-110007





98

Table 17-1: Percentage of coal from various sources.

GGSSTP, Ropar

Sl. No. Source 2009-2010 2010-2011 2011-2012

1 CCL 6.70 6.19 3.84

2 CCL washed 5.64 0.61 0.00

3 BCCL 22.69 10.23 11.92

4 SECL 4.12 3.37 2.32

5 MDL 2.53 12.36 15.58

6 ACBL 7.40 6.46 5.22

7 PANEM 50.81 60.44 61.08

8 ECL 0.05 0.26 0.00

9 LM 0.06 0.08 0.06

10 Total 100.00 100.00 100.00


GHTP, Lehra Mohabat

Sl. No. Source 2009-2010 2010-2011 2011-2012

1 CCL 13.8 6.7 5.4

2 ECL 0.8 0.0 0.0

3 Monnet 3.7 13.1 14.3

4 Panem 79.19 77.41 78.72

5 BCCL 2.01 2.08 1.12

6 ACBL 0.17 0.19 0.35

7 SECL 0.08 0.00 0.00

8 Others 0.24 0.55 0.08

9 Total 100.00 100.00 100.00


99


GNDTP

Sl. No. Source 2009-2010 2010-2011 2011-2012

1 BCCL 0.7 0.6 1.1

2 CCL 28.5 14.2 5.0

3 ECL 0.5 0.3 0.4

4 Monnet 5.92 17.82 3.37

5 Pachwara (Panem) 64.26 67.10 90.11

6 Un connected 0.08 0.06 0.06

7 Total 100.00 100.00 100.00


100

Table 18-1: Cost of generation of power including fuel.

GGSSTP, Roopnagar (April 2011-December 2011)

COST OF GENERATION Total cost (Rs. in

Lakhs) Cost/Unit

(paise/kWh)

1 Fuel cost

Coal 184127.64 189.47

Oil 982.87 1.01

Other fuel related expenditure 1464.03 1.51

186574.54 191.99

2 Operating expenditure

Cost of water 1132.33 1.17

Lubricants, Consumables 98.18 0.1

1230.51 1.27

3 Repair & Maintenance

Plant ,Machinery, Store & Spares 5643.62 5.81

Buildings 336.91 0.35

Civil & Hydraulic works 335.97 0.35

Vehicles 25.88 0.03

Others 24.12 0.02

6366.5 6.56

4 Employees Cost

Regular 12756.8 13.13

Work charged & Daily Wages 1309.48 1.35

14066.28 14.48

5 Administrative &General 183.92 0.19

6 Total cost without interest 208421.75 214.49

7 Depreciation 1824.88 1.88

8 Interest on security GH-78 0.02 0

9 Total cost with int & dep. 210246.65 216.35


101


GGSSTP, Roopnagar (CY-2011)

COST OF GENERATION Total cost (Rs.in

Lakhs) Cost/Unit

(paise/kWh)

1 Fuel cost

Coal 138779.07 191.74

Oil 1038.44 1.43


140813.49 194.55




939.83 1.3


Plant ,Machinery, Store & Spares 4826.82 6.67



Vehicles 13.57 0.02

Others 17.59 0.02

5236.24 7.23

4 Employees Cost

Regular 11536.66 15.94


12477.54 17.24

5 Administrative &General 171.52 0.24

6 Total cost without interest 159638.62 220.56

7 Depreciation 0 0

8 Interest on security GH-78 0 0

9 Total cost with int & dep. 159638.62 220.56


102


GNDTP, Bhatinda (April 2011-December 2011)


Lakhs) Cost/Unit

(paise/kWh)

2 Fuel consumption cost

Coal 36327.02 204.64

HPS 0 0

LDO 927.1 5.22

FO 1413.19 7.96

Fuel related 556.04 3.13

39223.35 220.95

Operating Expenditure

Cost of water, lubricants consumable, stores etc. 374.59 2.11

3 Cost of repair& mtc. 1808.67 10.19

4 Employees Cost

Regular 8439.95 47.54

Work charge 57.8 0.33

8497.75 47.87

5 Admn. Gen Expenses 95.82 0.54

6 Cost without intt. &dep. 50000.18 281.66

7 Cost of Capital

Cost of working capital 1144.96 6.45

Intt. On fixed capital (as per MIR) 220.2 1.24

1365.16 7.69

8 Dep. As per perforamnce budget (As per MIR) 649.92 3.66

9 Total cost of Generation 52015.26 293.01


103


GNDTP, Bhatinda (CY-2011)


Lakhs) Cost/Unit

(paise/kWh)

2 Fuel consumption cost

Coal 30927.51 215.9

HPS 0 0

LDO 247.59 1.73

FO 848.64 5.92

Fuel related 186.47 1.3

32210.21 224.85

Operating Expenditure

Cost of water, lubricants consumable, stores etc. 226.91 1.58

3 Cost of repair& mtc. 1039.11 7.26

4 Employees Cost

Regular 8034.26 56.09

Work charge 19.79 0.14

8054.05 56.23

5 Admn. Gen Expenses 66.45 0.46

6 Cost without intt. &dep. 41596.73 290.38

7 Cost of Capital

Cost of working capital 709.38 4.95

Intt. On fixed capital (as per MIR) 165.15 1.16

874.53 6.11

8 Dep. As per perforamnce budget (As per MIR) 487.44 3.4

9 Total cost of Generation 42958.7 299.89


104


GHTP CY-2011

COST OF GENERATION

Total cost (Rs.in Lakhs)

Cost/Unit (paise/kWh)

1 Fuel cost

Coal 124097.45 175.33

Oil 1100.33 1.16


127021.72 177




297.67 0.3


Plant ,Machinery,Store & Spares 3555.69 4.5



Other Works 0 0

Vehicles 9.22 0.04

3877.3 4.86

4 Employees Cost

Regular 5915.77 7.6


Admn. Expenses 154.13 0.18

6080.71 7.8

Total cost 137277.4 189.96 189.96


105

Table 19 -1: Cost of generation of power including fuel- various components of coal.

FY 2010-11 GGSSTP, Roopnagar

Total (Lakhs) Rs./ t Percentage( %) paise/kWh

Cost of coal & Freight 181052.201 2825.39 97.55 186.30

Cost of coal other than stock 1518.189 23.69 0.82 1.56

Demmurage Charges 325.500 5.08 0.18 0.33

Siding Charges 40.522 0.63 0.02 0.04

Penal Overloading 83.131 1.30 0.04 0.09

Commission to agents 459.694 7.17 0.25 0.47

Payment to railway staff 45.682 0.71 0.02 0.05

Derailment Charges 1.537 0.02 0.00 0.00

Other Coal related cost 508.109 7.93 0.27 0.52

Transit loss 702.047 10.96 0.38 0.72

Picked stone 584.123 9.12 0.31 0.60

Mill Reject 276.709 4.32 0.15 0.28

Total 185597.444 2896.32 100.00 190.98

Quantity (t) 6408051

FY 2012 Till date GGSSTP, Roopnagar

Total (Lakhs) Rs./ t Percentage( %) Paise/kWh


Cost of coal other than stock 345.439 7.42 0.25 0.47


Siding Charges 22.059 0.47 0.02 0.03






Transit loss 487.835 10.49 0.35 0.66

Picked stone 428.074 9.20 0.31 0.58

Mill Reject 208.915 4.49 0.15 0.28

Total 139775.050 3004.22 100.00 189.74



106


CY 2011 GNDTP, Bhatinda

Total (Lakhs) Rs./ t Percentage( %) Paise/kWh


Cost of coal other than stock 0.00 0.00 0.00


Siding Charges 0.00 0.00 0.00




Loss on settlement with rail claim 0.580 0.04 0.00 0.00

Other Coal related cost 0.00 0.00 0.00

Transit loss 9.932 0.70 0.02 0.05

Loss on account of stone below 200 mm

75.425 5.32 0.18 0.40

Coal handling contract charges 97.405 6.88 0.24 0.52

Total 41076.085 2899.75 100.00 217.20



107


CY 2011 GHTP, Lehra Mohabbat

Total (Lakhs) Rs./ t Percentage( %) paise/kWh


Coal Handling contract 403.810 9.23 0.32 0.56


Siding Charges 0.00 0.00 0.00






Transit loss 492.230 11.25 0.39 0.69

Picked stone 619.960 14.17 0.49 0.87

Mill Reject 132.620 3.03 0.11 0.19

Total 125921.360 2878.20 100.00 175.84



108

Table 20-1 : Unit cost of coal.

GGSSTP coal data for all 3 years

GCV (kcal/kg)

Coal cost (Rs./t)

Freight cost (Rs./t)

Landed cost (Rs./t)

Cost of Energy (Rs./Gcal)

2009-10

ARYAN 4636.2 1286.1 1719.0 (*) 3005.2 648.2

CCL 4443.1 1220.3 1221.9 2442.2 549.7

MDL 4707.1 1991.4 1561.5 (*) 3552.9 754.8

PANEM 5032.6 1057.0 1471.4 2528.4 502.4

SECL 5352.3 1523.2 1264.5 2787.7 520.8

2010-11

ARYAN 4654.7 1338.4 1887.0 (*) 3225.4 692.9

CCL 4600.4 1237.5 1350.9 2588.4 562.6

MDL 4725.9 1746.6 1760.2(*) 3506.9 742.1

PANEM 4977.3 1170.3 1392.9 2563.3 515.0

SECL 5423.1 1900.6 1472.1 3372.6 621.9

2011-12

ARYAN 4639.7 1664.2 2051.8(*) 3716.1 800.9

CCL 4617.2 1422.2 1463.6 2885.8 625.0

MDL 4712.0 1777.2 1820.2(*) 3597.4 763.4

PANEM 4979.1 1227.4 1662.7 2890.2 580.5

SECL 5393.4 2183.3 1333.6 3516.8 652.1

(*) Based on the original weight of coal supplied , i.e, whole process.


109

Table 20-2: Unit cost of coal.

GHTP coal data for all 3 years

GCV (kcal/kg)

Coal cost (Rs/t)

Freight cost (Rs/t)

Landed cost (Rs/t)

Cost of energy (Rs./Gcal)

2009-10

CCL 4432.6 1124.3 1411.8 2536.1 572.1

MONNET 4695.0 2057.5 1833.1(*) 3897.5 791.1

PANNAM 5030.4 1023.6 1557.2 2580.8 512.9

DVT IN 4748.9 1135.1 1486.7 2621.8 552.3

GRAND TOTAL 4915.6 1068.3 1526.4 2594.8 527.8

2010-11

CCL 4256.4 1201.2 1445.8 2647.0 626.0

MONNET 4657.8 1763.3 1832.4(*) 3679.4 790.0

PANNAM 4818.6 1065.1 1569.2 2634.3 546.8

DVT IN 4590.4 1241.5 2047.4 2745.2 598.6

GRAND TOTAL 4739.2 1132.1 1603.4 2735.5 577.2

2011-12

CCL 4632.8 1386.1 1496.1 2882.2 622.5

MONNET 4695.6 1630.0 1884.1(*) 3514.1 748.4

PANNAM 4785.7 1073.7 1603.6 2677.2 559.4

DVT IN 4679.6 1166.0 1606.5 2772.5 588.4

GRAND TOTAL 4747.4 1135.0 101135.0 2850.4 596.4



110

Table 20-3: Unit cost of coal.

GNDTP coal data for all 3 years

GCV (kcal/kg)

Coal cost (Rs/t)

Freight cost (Rs/t)

Landed cost

(Rs/t) Cost of energy

(Rs./Gcal)

2009-10

CCL 4426.3 1096.4 1436.5 2532.9 572.2

PANNEM 4999.9 1032.8 1547.2 2580.0 516.0

MONNET 4674.9 1648.3 1815.8(*) 3464.1 741.2

GRAND TOTAL 4802.9 1083.9 1526.7 2610.7 543.6

2010-11

CCL 4574.4 1139.3 1440.7 2580.0 564.1

PANNEM 4962.0 1124.7 1556.6 2681.3 540.6

MONNET 4671.3 1519.5 1804.4(*) 3323.9 711.5

GRAND TOTAL 4871.2 1188.3 1579.1 2767.4 568.5

2011-12

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

GRAND TOTAL 4929.5 1204.3 1613.8 2818.1 570.3

(*) Based on the original weight of coal supplied , i.e, whole process


111

Table 21-1: Unit cost of coal compared with and without washing charges.

GGSSTP MONNET with and without washing charges for 3 years

GCV (kcal/kg)

Coal cost (Rs/t)

Freight cost (Rs/t) (*)

Landed cost (Rs/t)

Cost of energy (Rs./Gcal)

2009-10

MONNET without washing charges 4707.1 1991.4 1561.5 3552.9 754.8

MONNET with washing charges 4695.0 2103.4 1561.5 3664.9 780.6

2010-11



2011-12





112


GHTP MONNET with and without washing charges for 3 years

GCV (kcal/kg)

Coal cost (Rs/t)

Freight cost

(Rs/t) (*)

Landed cost

(Rs/t)

Cost of energy

(Rs./Gcal)

2009-10



2010-11



2011-12





GNDTP MONNET with and without washing charges for 3 years

GCV (kcal/kg)

Coal cost

(Rs/t)

Freight cost

(Rs/t) (*)

Landed cost

(Rs/t)

Cost of energy

(Rs./Gcal)

2009-10



2010-11



2011-12





113

Table 22-1: Total annual fuel cost.

GGSSTP Total cost for 2009-10

Company ( 2009-10)

QTY RECEIVED

COAL COST (Rs. Cr)

FREIGHT COST (Rs. Cr)

TOTAL COST ( in

Rs. Cr)

ARYAN 408708.7 52.6 70.3 122.8

BCCL 1560473.352 252.2 196.6 448.8

CCL 682587.828 83.3 83.4 166.7

MDL 79864.28683 15.9 12.5 28.4

PANEM 2737003.38 289.3 402.7 692.0

SECL 284612.2667 43.4 36.0 79.3

DIVERTED COAL 1028745.134 104.6 159.5 264.1

UNCONNECTED 11795.51054 1.2 1.5 2.7

PIECE MEAL 1082.272656 0.1 0.2 0.3

GRAND TOTAL 6917015.982 842.6 962.6 1805.2


ARYAN 339030.1 45.4 64.0 109.4

BCCL 663290.1 139.3 90.3 229.5

CCL 394881.9 48.9 53.3 102.2

MDL 592210.5 103.4 104.2 207.7

PANEM 3550390.3 415.5 494.6 910.1

SECL 217385.5 41.3 32.0 73.3

DIVERTED COAL 560511.2 57.8 94.5 152.2

UNCONNECTED 15132.7 1.6 2.0 3.6

PIECE MEAL 177.2 0.0 0.0 0.1

GRAND TOTAL 6565819.6 853.1 934.9 1788.0


ARYAN 186869.8 31.1 38.3 69.4

BCCL 523656.3 105.0 77.5 182.5

CCL 173526.2 24.7 25.4 50.1

MDL 547922.3 97.4 99.7 197.1

PANEM 2565432.8 314.9 426.6 741.4

SECL 108859.3 23.8 14.5 38.3

DIVERTED COAL 312526.2 33.6 58.9 92.4

UNCONNECTED 8192.8 0.9 1.2 2.0

PIECE MEAL 0.0 0.0 0.0 0.0

GRAND TOTAL 4610683.7 631.2 742.1 1373.3


114


GHTP Total cost for all 3 years.

2009-10

Name QTY RECEIVED COAL COST

(Rs. Cr) FREIGHT COST

(Rs. Cr) TOTAL COST ( in Rs. Cr)

CCL 517602.13 5734.69 7242.29 12976.98

MONNET 217640.8875 2679.23 2551.89 5242.44

PANNAM 3278969.78 33608.3 51061.29 84669.59

DVT IN 624705.42 7097.71 9260.95 16358.66

GRAND TOTAL 4595390.04 49119.93 70116.42 119236.35

2010-11




CCL 246597.76 2950.49 3546.96 6497.45

MONNET 381228.704 6479.98 6953.87 13923.52

PANNAM 2903885.82 30753.25 45411.37 76164.62

DVT IN 668696 8294.44 12673.69 18416.9

GRAND TOTAL 4295715.46 48478.16 68585.89 117064.05

2011-12




CCL 132580.79 1825.34 1995.69 3821.03

MONNET 372115.6 6065.47 7023.43 13088.9

PANNAM 2183777.13 23536.52 35424.82 58961.34

DVT IN 577052.04 6723.98 9501.01 16224.99

GRAND TOTAL 3358554.46 38151.31 3396705.77 95863.26


115


GNDTP total cost for the 3 years.

2009-10

Name QTY RECEIVED

COAL COST

(Rs. Cr)

FREIGHT COST (Rs.

Cr)

TOTAL COST ( in

Rs. Cr)

CCL 557543.65 59.66 79.39 139.04

MONNET 152007.41 16.18 17.67 33.84

PANNAM 1130599.24 117.50 175.26 292.76

DVT IN 242183.32 25.68 36.63 62.32

UN CONNECTED 1601.92 0.17 0.24 0.41

GRAND TOTAL 2083935.54 219.19 309.18 528.37

2010-11

Name QTY RECEIVED

COAL COST

(Rs. Cr)

FREIGHT COST (Rs.

Cr)

TOTAL COST ( in

Rs. Cr)

CCL 183059.03 21.01 26.43 47.44

MONNET 174213.82 26.03 31.48 57.51

PANNAM 785219.86 88.23 122.54 210.77

DVT IN 160042.54 18.80 24.40 43.20

UN CONNECCTED 783.44 0.10 0.14 0.24

GRAND TOTAL 1303318.68 154.17 204.99 359.16

2011-12

Name QTY RECEIVED

COAL COST

(Rs. Cr)

FREIGHT COST (Rs.

Cr)

TOTAL COST ( in

Rs. Cr)

CCL 37012.13 4.76 5.97 10.72

MONNET 12649.60 2.10 2.60 4.69

PANNAM 845620.41 99.09 136.56 235.65

DVT IN 149230.38 19.84 23.61 43.45

UN CONNECCTED 586.26 0.07 0.09 0.16

GRAND TOTAL 1045098.78 125.85 168.82 294.67


116

Table 23: Analysis of TL in other utilities.

Sl. No.

Utility ERC Year TL (%) (Approved)

TL (%) (Achieved)

Remarks

01 NTPC TPS CERC 2011 0.8 0.3

0.8-1.0 0.3-0.4

Non-pit head Pit head

02 Indira prasta DERC 2011 0.8 3.8 Also includes washed coal received from CIL

03 Ukai GERC 2010 1.2 1.34 Approved 0.8 in 2011-12

04 Gandhinagar GERC 2010 1.4 0.48 Approved 0.8 in 2011-12

05 Torrent Power GERC 2009 1.4 3.13 Distance 1300 km SECL

06 Wanakbori GERC 2009 1.5 1.5 Approved 0.8 in 2011-12

07 Sikka GERC 2009 2.0 0 Approved 0.8 in 2011-12

08 Panipat HERC 2011 1.0 5.26

09 Yamnuanagar HERC 2011 1.0 9.09

10 Hissar HERC 2011 1.0 6.96

11 Amarkantak MPERC 2011 0.3 Pit head

12 SGTPS MPERC 2011 0.9

13 STPS MPERC 2011 0.8

14 KTPS RERC 2010 2.0 1.8 660-1013 km, NCL, SECL

15 SSTPS RERC 2011 2.0 1.29 1600-1700 km, NCL, SECL

16 Korba East bank

CSERC 2011 1.5 1.25 % TL + 0.25 % Stacking loss

17 HTPS CSERC 2011 0.25 Stacking loss of 0.25 %

18 Bihar TPSs BERC 2011 3.8 4.0 Baranui

19 Andhra APERC 2010 2.05-3.03


117

Table 24-1: Source wise TL for 3 years.

Transit loss (% of receipt coal) GGSSTP

Month &Year 2009-10 2010-11 2011-12

BCCL -0.17 -0.43 -0.16

CCL 1.13 0.78 2.49

SECL 7.01 3.36 2.67

ACBL 1.42 1.22 2.42

MDW 2.10 1.97 1.28

PANEM Coal 0.00 0.00 0.00

Total including Panem

0.61 0.47 0.49

Total excluding Panem

1.15 1.15 1.23


Transit loss (% of receipt coal) GHTP

Month & Year Name 2009-10 2010-11 2011-12

CONSIGNED

CCL 1.25 -0.27 1.86

MONNET 1.55 1.78 1.35

ECL -2.21 PANEM -1.12 -1.77 -3.26

DIVERTED IN

CCL 1.37 0.93 0.23

MONNET 3.4 1.93 0.01

ECL 6.74 PANEM 2.63 3.26 0.72

ACB -3.83 -7.05 2.74

BCCL -0.2 1.76 -0.08

WCL 0 SECL 1.6 OTHER -0.89 7.83 -1.05

Total (incl. Panem) 0.25 0.31 0.29

Total (Excl. Panem) 1.16 1.33 1.25


118


Transit loss (% of receipt coal) GNDTP Bhatinda

2009-10 2010-11 2011-12

CCL 0.55 -1.41 -1.17

BCCL 3.37 2.34 3.89

ECL 2.65 MONNET 0.62 0.70 0.38

Unconnected 5.21 7.29 1.14

SECL

2.39 2.31

Total WITH PANEM 0.24 -0.05 0.01

Total WITH OUT PANEM 0.66 -0.15 0.08


119

Table 25: Methods of reduction of transit losses.

Sl. No.

Solutions Reduction of transit loss

01 Mapping/identification of specific locations where coal is being removed. GPRS tracking of railway movements.

02 Informing the Railway police force about the likely thefts. Contact Railway Protection Force in respective area must be contacted/employed for eliminating coal theft from loaded rakes. Insisting railway Police Force to have constant vigilant watch during movement of coal.

03 Periodically calibrating and maintaining the power station weigh bridges is required. Calibration and sealing of weigh bridges at regular interval at the loading and unloading end is being done. The down time of weigh bridges must be recorded.

04 Visiting and carrying out the inspection of the weigh bridges where transit loss is found increased. A team consisting of Senior Officers must be formed for surprise checking weighbridges at colliery end on periodical basis at all CIL collieries.

05 Requesting railway authority to reduce or eliminate number of stoppages of rakes in transit.

06 Claims for transit losses are being lodged with the Railways. This must be pursued rigorously.


120

Table 26-1: Demmurages on coal wagons to railways.

Calendar Year 2011 GHTP,Lehra Mohabbat

Months

Demurrage raised

Demurrage waive off

% waived off Balance

Demurrage % paid

Rs.In lakhs Rs.In lakhs % Rs.In lakhs %

January 0.85 0.17 20.00 0.68 80.00

February 1.26 0.27 21.17 0.99 78.83

March 2.10 0.19 9.21 1.90 90.79

April 3.06 0.58 18.89 2.48 81.11

May 5.10 1.17 23.05 3.92 76.95

June 4.47 0.94 20.98 3.53 79.02

July 4.69 1.13 24.06 3.56 75.94

August 14.45 3.54 24.50 10.91 75.50

September 3.51 0.91 25.82 2.60 74.18

October 0.64 0.13 20.00 0.51 80.00

November 2.96 0.81 27.41 2.15 72.59

December 6.69 0.43 6.43 6.26 93.57

Total for Year 2011 49.76 10.26 20.13 39.49 79.87


121


Calendar Year 2011 GNDTP, Bhatinda

Months

Amount billed by railways

Amount waived off

% waived off Balance to be paid

% paid

Rs. in lakhs Rs. in lakhs % Rs. in lakhs %

Jan.11 1.94 0.43 21.98 1.51 78.02

Feb.11 1.17 0.18 15.24 0.99 84.76

March.11 0.62 0.06 9.03 0.56 90.97

April.11 3.49 0.83 23.78 2.66 76.22

May.11 3.03 0.70 22.99 2.33 77.01

June.11 4.86 1.12 22.96 3.75 77.04

July.11 7.31 1.77 24.24 5.54 75.76

Aug.11 19.57 5.74 29.32 13.83 70.68

Sep.11 15.26 5.16 33.85 10.09 66.15

Oct.11 6.75 1.00 14.77 5.75 85.23

Nov.11 4.93 1.05 21.23 3.88 78.77

Dec.11 3.45 0.64 18.42 2.82 81.58

Total for Year 2011 72.37 18.66 21.49 53.71 78.51


122


Calendar Year 2011 GGSSTP, Roopnagar

Months Amount billed

by railways Amount

waived off % waived

off Balance to

be paid % paid

Rs. in lakhs Rs. in lakhs % Rs. in lakhs %

Jan.11 18.99 3.65 19.21 15.34 80.79

Feb.11 18.91 3.78 20.00 15.13 80.00

March.11 92.17 20.81 22.58 71.36 77.42

April.11 42.38 7.96 18.79 34.41 81.21

May.11 23.76 4.75 20.00 19.00 80.00

June.11 78.49 16.01 20.39 62.48 79.61

July.11 17.98 4.28 23.78 13.71 76.22

Aug.11 41.86 11.86 28.33 30.00 71.67

Sep.11 32.07 8.83 27.53 23.24 72.47

Oct.11 12.25 2.41 19.66 9.84 80.34

Nov.11 9.95 1.81 18.16 8.14 81.84

Dec.11 27.69 0.00 0.00 27.69 100.00

Total for Year 2011

416.50 86.14 19.87 330.36 80.13


123

Table 27-1 : Source wise receipt of rakes for 3 years.

Rakes received /year for GGSSTP

Name 2009-10 2010-11 2011-12

CCL 82 94 49

Washed 98 7 0

BCCL 424 185 185

SECL 86 62 34

MDW 30 201 205

ACBL 138 112 73

PCML 755 970 804

ECL 0 0 0

Total 1613 1631 1350

Table 27-2: Source wise receipt of rakes for 3 years.

Rakes received /year for GHTP Lehra Mohabbat

2009-10 2010-11 2011-12

CCL 171 74.5 49

ECL 11 0 0

Panem 999 901 690

Monnet 37 149.5 124

ACB 2 2 3

BCCL 25 25 10

SECL 1 1 0

LM 0 5 0

TOTAL 1246 1158 876

Table 27-3: Source wise receipt of rakes for 3 years.

Annual rakes received for GNDTP Bhatinda

2009-10 2010-11 2011-12

CCL 190 69 17

Monnet 5 51 18

Panem 357 244 245

Total 552 364 348


124

Table 28: Steps involved in unloading of coal

Sl. No.

Wagon unloading – steps involved

01 Receipt of rake and change over to the shunter engine of the TPS.

02 Segregation of wagons in groups of 6-10 to take them to individual wagon tipplers.

03 Placement of wagons, tippling and removal wagons from each wagon tippler.

04 Re-assembly of wagons in the original formation by local shunter engine.

05 Handling over of the rake to the railways.

Table 29: Measured time for unloading wagons (N BOX) at GGSSTP

Time per BOX N wagon for GGSSTP, Ropar

Wagon

tippler

Positioning time Tippling time Clearing time

from*

Total time

Onward tipple

Return tipple

WT 1 2 min: 55 s 1 min: 30 s

1 min: 25 s 4 min: 15 s 5 min: 50 s

WT 2 2 min: 30 s 1 min: 10 s

1 min: 10 s 4 min: 50 s 4 min: 50 s

WT 3 2 min: 30 s 1 min: 10 s

1 min: 10 s 5 min: 15 s 5 min:15 s

WT 4 2 min: 55 s 1 min: 20 s

1 min: 10 s 4 min: 00 s 5 min: 25 s

WT 5 2 min: 45 s 1 min: 10 s

1 min: 00 s 4 min: 45 s 5 min: 55 s

*Coal slightly wet


125

Table 30: Measured time for unloading wagons (N BOX) at GNDTP.

Time per BOX N wagon for GNDTP, Bhatinda

Wagon

tippler

Positioning time Tippling time Clearing time

from*

Total time

Onward tipple

Return tipple

WT 1 2 min: 30 s 1 min: 15 s 1 min: 15 s 14 min: 35 s 14 min: 35 s

WT 2 2 min: 30 s 1 min: 15 s 1 min: 10 s 14 in: 55 s 14min: 55 s

*Coal slightly wet

Table 31: Unloading infrastructure at the three TPS.

Sl. No.

Particulars Unit GGSSTP, Roopnagar

GNDTP, Bhatinda

GHTP, Lehra Mohabbat

1 Installed capacity MW 1260 440 920

2 CHP capacity t/h 4000 1000 4000

3 No. of wagon tipplers no. 5 2 4

4 Capacity of each wagon tippler

t/h 1000 500 1000

5 No. of tipples/h tipples/h 12-14 5-4 12-14

6 Wagon capacity t 70 70 70

7 Actual capacity of coal handling

t/h 3360 540 3360

8 Coal feeder at wagon tippler hopper

- apron vibratory

apron

9 No. of rakes received/ year

no. 1350 348 876

10 No. of rakes received/ day

no. 4-5 1-2 3-4

11 Other infrastructure besides wagon tipplers for BOX N

Track hopper for bottom opening rakes

Pokaline, Manual unloading by side opening of wagons

Track hopper for bottom opening rakes


126

Table 32-1: Source wise incurrence of POL for 3 years.

POL (Rs. L ) of GGSSTP

2009-10 2010-11 2011-12

BCCL 108.7 109.6 70.7

CCL 77.1 34.5 23.7

SECL 23.1 2.3 0.4

ACB 1.0 0.7 1.0

Monnet 6.4 34.7 201.4

TOTAL 216.2 181.8 297.2


POL charges (Rs. L) GHTP Lehra Mohabbat

2009-10 2010-11 2011-12

CCL 66.83 60.16 16.63

ECL 1.21 0.00 0.00

Monnet 15.38 8.70 154.69

Total 83.42 68.86 171.31


POL charges (Rs. L) GNDTP Bhatinda

2009-10 2010-11 2011-12

CCL 269.02 12.66 4.48

Monnet 7.75 9.74 0

Total 276.77 22.40 4.48


127

Table 33-1: Stones receipt from CIL coal for 3 years.

Quantity of stones at GGSSTP

Period % of stones * Rebate realised from CIL In

Rs.

FY 2009-10 1.3 Claims has been lodged but no rebate has been realised so for.

FY 2010-11 1.2

FY 2011-12 ( Upto 02/12) 1.8

*% of CIL reciept coal.


Stones collected at GHTP

Year

% of stones * Amount debited to CCL

Amount realised, Rs.

L

Balance Amount, Rs.

L

2009-10 0.10 15.19 2.54 12.65

2010-11 0.35 23.82 0.00 23.82

2011-12 ( upto Nov-11) 0.41 18.95 0.00 18.95



Stones collected at GNDTP

Year % of stones *

Rebate realized from coal India for stones ( Rs. L)

2009-10 0.3 5.71

2010-11 0.5 Nil

2011-12(upto dec-11) 0.1 nil



128

Table 34-1: Generation & sale of mill rejects for 3 years.

DETAILS OF QUANTITY OF MILL REJECT AT GGSSTP

Period

Quantity of mill reject generated In t

Quantity of Mill reject sold In t

Amount realised for the sale of same In (Rs.L) % rejects

Amount Rs/t

2009-10 15676 11745 21 0.2 549.86

2010-11 9080 5647.55 14 0.1 406.88

2011- 12 (Upto 02/12) 10836 4936.28 12 0.2 405.79

Table 34-2: Generation & sale of mill rejects for 3 years.

Sale of mill rejects at GHTP, Lehra Mohabat

Year % rejects Qty.t Amount , Rs. L Rs./t

2009-10 0.03 1168 2.19 187.5

2010-11 0.06 2640 4.95 187.5

2011-12(Upto 12/11) 0.07 2272 4.26 187.5

Table 35: SHR of stations of comparable age and units.

Sl. No.

Utility SHR kcal/kWh

Coal GCV Kcal/kg

Remarks

01 Sipat 2357 3410 NTPC

02 Dadri 2394 3845 NTPC

03 Farakka 2407 3016 NTPC

04 Simhadari 2349 2328 NTPC

05 Korba 2371 3347 NTPC

06 Kota 2513 3679 Rajasthan

07 Suratgarh 2478 3681 Rajasthan

08 Vijayawada 2360 3274 AP

09 Khaparakheda 2653 3359 Maharashtra

10 Raichur 2577 3749 Karnataka


129

Annex – 3

(Comments by PSPCL)


130

COMMENTS GIVEN BY PSPCL

Sub: The report of the committee regarding reply to the observations / suggestions of Fuel Audit report submitted by CPRI to PSERC.

Punjab State Electricity Regulatory Commission (PSERC) has appointed CPRI, Bangalore for carrying out the Fuel Audit of PSPCL's thermal power stations. Secretary, PSERC vide his office Memo. No. 1603 dated 18.05.2012 has forwarded a copy of fuel audit report conducted by CPRI and has asked PSPCL to furnish the comments on the audit report by 06.06.2012 positively.

The reply to various observations of fuel audit is as under:

I. Drop in GCV of receipt and bunkered coal

(A) During the period of fuel audit:

A reference in this regard was also received earlier vide PSERC letter No. PSERC/Tariff/T/ 152/10597 dated 27.02.2012 and PSPCL reply was forwarded to the commission vide Chief Engineer/ARR & TR, PSPCL office memo No. 387/CC/DTR/Dy. CAO/234 dated 16.03.2012 (Annexure-I), wherein the reasons for reduction in drop of GCV between the receipt and bunkered coal were intimated.

CPRI at Page-12 of the report has given the variation in GCV drop at GGSSTP Ropar and GHTP Lehra Mohabbat during the past 3 years, which is given hereunder:

GGSSTP Ropar

Year Receipt coal GCV

Kcal/Kg Bunkered coal GCV,

Kcal/Kg Actual drop

Kcal/Kg

2009-10 4900.7 3967 933.7

2010-11 4931.7 3950 981.7

2011-12 4929.1 3941 988.1

GHTP Lehra Mohabbat

Year Receipt coal GCV

Kcal/Kg Bunkered coal GCV,

Kcal/Kg Actual drop

Kcal/Kg

2009-10 4913.6 4077 836.6

2010-11 4734.6 4022 712.6

2011-12 4750.1 3932 818.1

CPRI has observed that the decrease in GCV of bunkered coal could be due to over valuation of receipt coal and drop in GCV should not exceed a value of 150 Kcal/Kg.

The data in respect of GCV of receipt coal mentioned in CPRI's report, as given in the tables above, was neither supplied nor measured by PSPCL thermal power stations, as only UHV was being calculated for making payments to different coal companies. However, the data in respect of GCV of bunkered coal was actually


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measured by thermal power stations on fired basis and the figures of GCV on fired basis were given to CPRI.

CPRI has worked out the GCV of received coal on Air Dried Basis (ADB) by

back calculation from UHV on equilibrated basis by using the empirical formulae

given under Sr. No (ii) at Page-11 of the CPRI report. GCV under ADB conditions will

be more than GCV on fired basis owning to difference in moisture. This has resulted

into higher value of GCV of received coal in comparison to that of bunkered coal on

fired basis. Thus comparison of GCV of received coal on ADB determined by

empirical formulae with GCV of bunkered coal on fired basis by Bomb Calorimeter is

not under similar conditions with regard to moisture content and method of testing,

which has resulted into drop in GCV of bunkered coal on fired basis w.r.t. receipt

coal.

CPRI at Page-11 in its report has recommended as under:

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

Air dried basis (ADB) where the GCV is determined by drying the sample in air or As

fired basis (AFB) wherein the moisture effect is subtracted. The different between

the two is around 280-350 Kcal/Kg. "

However, the above aspect has been ignored by the CPRI in its report while

calculating the GCV drop in respect of receipt coal vis-à-vis bunkered coal for the years

2009-10, 2010-11 and 2011-12, wherein GCV of receipt coal on ADB has been compared

with GCV of bunkered coal on fired basis.

PSPCL receives coal from various coal companies such as PANEM, Monnet, BCCL, CCL etc. which has around 4-5% surface moisture in mix of all types of coal. Accordingly, due to presence of 4-5% surface moisture, the GCV of this coal on „As Fired basis' shall be lower than GCV on „on receipt basis' determined on ADB. One percent increase in moisture content in coal sample leads to 145 Kcal/Kg reduction in GCV as per formula (GCV = 8555-(145xMoisture%)-(94.12x Ash%) acknowledged by CPRI at Sr. No. (vi) of its fuel audit report (Page No. 13). As such, around 4-5% surface moisture in the bunkered coal have resulted into reduction in the GCV on fired basis by about 580-725 Kcal/Kg.

It has to be born in mind that above mismatch is not sue to actual reduction but it is because of comparison by CPRI in two different conditions of coal sample which shall obviously lead to different results. Therefore, direct comparison is not on equitable basis and cannot be validated.

CPRI in its report at Sr. No. (i) (Page-11), has allowed a cushion of 150 Kcal/Kg in the receiving end UHV w.r.t. sending end UHV. Since, the GCV of receipt coal have been arrived at by using the formulae by CPRI from UHV results of sending end, as such the GCV of receipt coal on ADB further needs to be reduced atleast by 150 Kcal/Kg.

After accounting for the drop in GCV by 150 Kcal/Kg on account of difference in UHV of receiving end coal w.r.t. sending end coal as per Sr. No. (i) at Page-11 of CPRI's report and drop in GCV by 150 Kcal/Kg due to drop in heating value at the


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coal handling plant and further drop in GCV by about 653 Kcal/Kg on account of 4.5% surface moisture, the mismatch in GCV of receipt coal on ADB vis-à-vis GCV of bunkered coal on fired basis works out as 953 Kcal/Kg (653 + 150+150), which is near to the value of drop in GCV mentioned in the CPRI's report.

B) Drop in GCV under new GCV regime effective from 1.1.2012.

Coal India Limited (CIL) vide its Notification No. CIL:S&M:GM(F) :Pricing:1813

dated 31.12.2011 has migrated from UHV (Useful Heat Value) system of pricing of

coal to GCV (Gross Calorific Value) system of pricing of coal from 01.01.2012

onwards. Under the new GCV regime, the quality of receipt coal is being determined

on rake to rake basis on equilibrated basis. In view of the observation of CPRI that

the drop in GCV of receipt coal and bunkered coal on fired basis should not be more

than 150 Kcal/Kg, it is therefore imperative to determine the quality of bunkered

coal on equilibrated basis to assess the drop in GCV. This aspect has also been

covered in CPRI report at Page-11, wherein it has been recommended that GCV of

both receipt coal as well as bunkered coal can be either represented as Air Dried

basis (ADB) where the GCV is determined by drying the sample in air or as As Fired

basis (AFB) wherein the moisture effect is subtracted. However, since the quality of

coal under GCV regime is determined on equilibrated basis, so the GCV of receipt

coal and bunkered coal needs to be represented on equilibrated basis for

comparison purposes. Further, the quality of bunkered coal on fired basis also needs

to be determined, so as to assess the heat loss on account of surface moisture in the

bunkered coal.

However, the drop in GCV of receipt coal vis-à-vis bunkered coal, when both

are represented on equilibrated basis, in case of PSPCL thermal power stations shall

be more than 150 Kcal/Kg in view of the following:

(i) In respect of coal supplies from Coal India Ltd. (CIL), no testing of coal

rakes is done at un-loading end ever since the applicability of New Fuel

Supply agreement from Sept., 2009 and the results of the loading end

are final. It shall be appreciated that the results of loading end cannot

represent true picture of GCV of coal received at PSPCL thermal power

stations, since due to prevailing law and order problem in the mining

areas, it becomes sometimes difficult to monitor the work of sampling

and analysis round the clock. CPRI in its report at Sr. No. (i) (Page-11),

has allowed a cushion of 150 Kcal/Kg in the receiving end UHV w.r.t.

sending end UHV. It is understood that a cushion of atleast 150

Kcal/Kg will also be available under the new GCV regime on GCV

results of sending end, as the analysis results of loading end in respect

of coal supplies from CIL sources are final. As such the GCV of receipt

coal needs to be reduced by atleast 150-200 Kcal/Kg.


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(ii) When a rake of coal is fed directly to the bunkers, bunkered coal can

be expected to have theoretically same GCV as that of the received

coal. PSPCL thermal power stations being far away from the coal

mines, a reserve stock of coal has to be maintained at plants. As per

CEA norms, thermal power stations of PSPCL are required to maintain

coal inventory sufficient for 25-30 days. CPRI in its report has

recommended to adopt First In First Out principle for receipt coal to

ensure that certain lots do not weather for too long. The CPRI in its

report (Page-12) has observed that the number of days of coal storage

in case of PSPCL thermal power stations varies from 9 to 30 days and

hence the drop in GCV should not exceed 150 Kcal/Kg. In view of

CEA's norms of having coal stocks sufficient for 25-30 days and

keeping in view the practical constraints, it is going to be difficult

sometimes to implement the CPRI's suggestion regarding following the

principle of First In First Out while feeding the coal to the units.

As such, the number of days of storage in case of PSPCL thermal power stations shall be more and GCV drop shall accordingly be higher than 150 Kcal/kg as recommended by CPRI due to evaporation of combustible gases like oxygen, sulphur, methane, hydrogen etc., oxidation of coal and reduction of volatile matter.

Thus, GCV drop on same basis (i.e. equilibrated basis, as Ministry of

Coal has notified the testing of coal on equilibrated basis) for receipt

and bunkered coal will be more than 300 Kcal/Kg, which will be

without the effect of surface moisture. The quality of bunkered coal on

fired basis also needs to be determined, so as to assess the heat loss

on account of surface moisture in the bunkered coal.

Verbal enquiry from power stations of other utilities has indicated differences of more than 1000 Kcal/Kg in case of GCV of bunkered coal and receipt coal (differences upto 975 Kcal/Kg has been corroborated at Table 10 of CPRI's report). The GCV drop for 2-3 thermal power stations have been shown to be inordinately lower than the majority of stations. However, no analysis is available in CPRI's report for the same. It would have been purposeful if CPRI had analysed for the inconsistency of the data of thermal power stations, which incidentally come under jurisdiction of single regulator i.e. MERC. However, it appears that the reductions from the value for the year 2008 to the 2011 could be due to testing in similar conditions. The huge variation in GCV of coal declared by coal companies and GCV of coal received at thermal power stations has also been covered in the summery "record note discussion" held on 21.02.2012 at CEA, New Delhi received vide CEA letter No. CEA/Plg./OM/1/1/2012/517-550 dated 26.03.2012 (Annexure-II).

In view of the facts mentioned above, the difference in GCV of the receipt coal and bunkered coal in case of PSPCL TPSs is not going to be less than power stations of other utilities. The position may improve, if the quality of CIL coal is


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analyzed at the unloading end against existing practice of determining the quality at the loading end.

CPRI has reported the GCV and SHR of different power plants in Table 35 (Page No. 126). The equivalent UHV has been calculated with CFRI formula (UHV = (GCV-2111)/0.6812), which is also depicted under column 3 and the equivalent grade has been shown in Column 4.

Utility Coal GCV

(Kcal/Kg)

UHV

(Kcal/Kg) Grade

1 2 3 4

Sipat 3410 1907 G

Dadri 3845 2546 F

Farakka 3016 1329 G

Simhadri 2328 319 UNGRADED

Korba 3347 1814 G

Kota 3679 2302 G

Suratgarh 3681 2305 G

Vijaywada 3274 1707 G

Khaparakheda 3359 1832 G

Raichur 3749 2405 F

All the power plants depicted in the above table use CIL coal and some of the plants even use imported coal. It is unbelievable that whether all the plants throughout the country have procured the grade of coal (mostly G grade and even ungraded coal) as mentioned against each plant in the above table. This needs to be verified for assessment of correct drop of GCV in receipt and fired coal in respect of thermal power plants of the country. PSERC is requested to get revealed the actual facts with supporting data duly authenticated and validated with regard to drop in GCV between receipt coal and coal on fired basis including the plants depicted in Annexure-2 (page No. 85) of fuel audit report of CPRI.

Further, had the drop in GCV in fired coal vis-à-vis received coal at PSPCL thermal stations been more adverse, then it should have resulted in to higher coal costs per KWH in comparison to other utilities. But the facts speak otherwise. The comparison of fuel cost per KWH after excluding freight which is variable depending upon geographical location of power plant is tabulated below:

Name of the project

Coal cost excluding freight (Paisa per KWH)

2009-10 2010-11 2011-12

(up to Dec 2011)

GHTP Lehra Mohabbat 67.86 74.22 76.00

GGSSTP Ropar 88.62 93.49 94.00

Panipat TPS (Haryana) 139.70 153.45 181.55

NTPC Dadri – II TPS - 138.66 177.42

NTPC Unchahar TPS 114.06 106.64 134.13

KOTA TPS (Rajasthan) - 131.05 125.66

Suratgarh TPS (Rajasthan) - 126.19 122.27

Anpara TPS (U.P.) - - 109.37

Obra TPS (U.P.) - - 161.52

Parichha TPS (U.P.) - - 220.19

Ukai TPS (Gujarat) - - 181.80

Gandhinagar TPS (Gujarat) - - 180.60

Wankabori TPS (Gujarat) - - 160.90


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The above cost data has been collected through various means including

telephonic enquiry from power stations. PSERC or its consultant may verify the data

at their level.

The purpose of the carrying out the study on fuel audit of PSPCL's thermal generating station from CPRI by PSERC is to bring efficiency for the ultimate benefit of consumers. The above table shows that PSPCL thermal power stations are working efficiently, as cost of coal per KWH of PSPCL thermal powers stations is the lowest amongst the thermal power stations compared above.

II. Reduction in Transit Loss between the mine & TPS:

The transit loss of PSPCL power plants and thermal power stations of the neighbouring states for the year 2011-12 as mentioned by CPRI in its fuel audit report are as under:

Power plant Transit loss (%)

GGSSTP Ropar 1.23

GNDTP Bathinda 0.08

GHTP Lehra Mohabbat 1.25

Panipat 5.26

Yamunanagar 9.09

Hissar 6.96

Torrent Gujarat 1.41

GSPGCL 1.50


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Transit loss for stations located closer to sending end can be expected to be lower than that of farther stations. From the above data, it would be appreciated that thermal power stations of Punjab, even though located at more distance from the coalfields in comparison to the stations of Haryana and Gujarat, have a lower transit loss.

Accrual of transit loss of more than 5% in Haryana power stations shows that transit loss is uncontrollable. CERC norm of 0.8% transit loss as recommended by the consultant cannot be made applicable for PSPCL power plants, as PSPCL power plants are at the farthest end from coal mines as compared to Central Government generating stations. Therefore the presently allowed limit of transit loss of 2% is reasonable and acceptable.

However, if recommendation of CPRI regarding linking of transit loss with the coal cost is considered, then it is apprehended that the liaison agent may quote higher rates to cover his risks and the whole exercise may be counterproductive.

III. Reduction in demurrage through improved unloading infrastructure:

Due to long leads of PSPCL thermal power stations from the coal mines, the placement of rakes at the thermal power stations varies significantly, as on certain days no rake is received while on other days even upto 8-10 rakes are received at GGSSTP Ropar. This results into becoming the system idle at sometimes, while it is overloaded at other times, due to placement of rakes in bunches by the Railways, thus resulting into over detention of wagons and levy of heavy demurrage charges. The receipt of lumpy coal alongwith oversized coal, especially coal supplies from CIL sources, also results into delay in unloading of the rakes and accrual of demurrage charges.

Inspite of regular follow-ups with the quarters concerned, the position has not improved and the thermal power stations are receiving coal rakes in bunches alongwith lumpy coal and stones. However, as per suggestion contained in the report with regards to reduction in demurrage, efforts are being made to repair existing side arm chargers. The proposal for installation of new beetle chargers or side arm chargers, where these do not exist, shall be studied and implemented if found techno economically feasible.

IV. Reduction in quantities of stones received through more vigilance at

the loading end.

The matter is regularly taken up with the CIL to stop dispatching the coal having stones mixed with it.

V. Review of contract with washeries regarding the quantity and

quality of coal inputs and outputs.

As per Ministry of Environment & Forest gazette notification dated 19.09.1997 (Annexure-III), the thermal power stations located beyond 1000 Kms from the pit head and thermal power stations located in urban area are required to use beneficiated coal with a ash content not exceeding 34%. The thermal power stations of PSPCL fall in the ambit of this notification being located beyond 1000 Kms from


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the pit head and are bound to use beneficiated coal with ash content less than 34%. Accordingly, a contract agreement dated 14.08.2002 was signed by PSEB (now PSPCL) with M/s Monnet Daniels after following competitive bidding route for washing of CCL raw coal.

CPRI in its report has observed that the washed coal supplies from M/s Monnet Daniels are presently not economical and the washed coal is expensive by almost 22-28% as compared to the raw coal. CPRI has further recommended that a validation of the process must be undertaken by a neutral third party agency at the earliest. CPRI at Page-17 of its report has indicated the per MT freight in respect of coal supplies from M/s Monnet Daniels to GGSSTP Ropar and GHTP Lehra Mohabbat as ` 1820.20 and ` 1884.10 respectively. The figures of railway freight in respect of coal supplies from M/s Monnet are not correct as indicated in the CPRI report. It appears that the exaggerated figures of railway freight in respect of M/s Monnet have adversely affected the economics of washed coal vis-à-vis raw coal. GGSSTP Ropar has confirmed that the figure of railway freight from M/s Monnet needs to taken as ` 1456 per MT in the table given at Page-17 of the report instead of ` 1820.20 per MT and cost economics of getting CCL washed coal needs to be worked out accordingly . An effort has been made to work out the economics of getting washed coal

vis-à-vis raw coal after accounting for commercial benefits on various accounts in

respect of washed coal supplies from M/s Monnet vis-à-vis raw coal supplies from

CCL as per FSA dated 08.09.2009. Presently under the new GCV regime, M/s Monnet

is lifting CCL raw coal having GCV declared bands as 4300-4600 Kcal/Kg (KDH mine)

and 4600-4900 Kcal/Kg (Ashoka mine) on PSPCL's behalf. M/s Monnet is witnessing

the work of joint sampling and analysis on PSPCL's behalf with CCL. During the

analysis of raw coal supplies for the month of April 2012 from Ashoka mine, the GCV

in most of the cases (about 87%) has been analysed less than 4600- Kcal/Kg i.e. the

payment of raw coal to CCL are to be made in the GCV band 4300-4600 Kcal/Kg.

Accordingly, while working out the economics, the cost of CCL raw coal having GCV

band 4300-4600 Kcal/Kg has been considered and GCV of washed coal and raw coal

of CCL has been compared in terms of `/Million-kcal after determining the GCV of

CCL raw and Monnet washed coal based upon ash percentage and equilibrated

moisture percentage through empirical formula i.e. GCV = 85.55(100-(1.1 A + M)-

(60xM). The washing of coal has many tangible and intangible benefits and the cost

economics of M/s Monnet washed coal works out as under:

Cost economics of getting CCL raw coal washed from M/s Monnet Daniels

% Ash

Type of coal

Yield Reduction Factor

%Yield

Coal Cost after

accounting for yield** (Rs/MT)

Washing Charges

after accounting

for yield (Rs/MT)

Railway Freight

(Rs/MT)

**Per MT

saving on

various accounts

due to washed

coal (Rs/MT)

Landed cost after

accounting Column [5]

(Rs/MT)

GCV (Kcal/Kg)

Total cost Rs/Million

kcal

1 2 3 4 5 6

34.5 Raw 0 100 1167.55 0.00 1456 0 2623.55 4508 581.96


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28.5 Washed 3.33 80.0 1459.07 174.96 1456 278.57 2811.46 5073 554.22

** Worksheet depicting benefits of using washed coal from M/s Monnet vis-à-vis raw coal, is enclosed as Annexure-IV.

1. Yield reduction factor indicates loss of yield for every 1% reduction in ash.

2. %age yield after accounting for yield reduction factor.

3. Coal rate including STC charges upto 10-20 Km. i.e. Rs. 77/MT

4. Washing charges are assumed as Rs. 140/MT of raw coal, however the exact

charges shall be worked out after fixation of base date with M/s Monnet.

5. GCV = 85.555(100-(1.1xAsh+Moisture))-60xMoisture, where moisture has been

assumed as 5.5%.

The perusal of the table shown above indicates that the cost in `/Million-kcal

of washed coal corresponding to 28.5% ash works out as ` 554.22 against ` 581.96

of CCL raw coal and as such, the washed coal is cheaper by ` 27.74 per Million-kcal

vis-à-vis CCL raw coal.

In addition to the above, the following additional benefits shall also accrue,

when washed coal is used at the thermal power plants:

1. Reduced ash generation, requires less ash handling as well as reduces ash

dumping area, contributing to less Capital & Operational Costs.

2. Use of washed coal having uniform size and no foreign materials, improves

performance of Coal Handling Plant by avoiding frequent jamming and thus

less demurrage charged by the railways due to less detention time of rake.

3. Coal Mills of powerhouse perform better due to sized coal and reduction of

ash content in washed coal. Also downtime of coal mills reduces as ingress of

stones reduces.

4. Railway's handling capacity gets increased.

5. Smoke generation is less and Air Pollution gets reduced.

6. Carbon Dioxide emissions get reduced.

7. The Boiler efficiency enhances and productivity increases.

8. With beneficiated coal, Furnace wall Slaging / Leakage of Boiler Tubes

/Clinker formation and abnormal erosion gets reduced to a large extent.

9. Use of beneficiated coal contributes to improve power plant performance,

plant utilization factor and capacity utilization.


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Further, regarding observations of CPRI for determining the GCV of washed coal for comparison purposes, it is submitted that as per the provisions contained in the contract agreement dated 14.8.02 between PSEB (now PSPCL) and M/s Monnet, the washery operator is to supply washed coal after reducing the ash %age in washed coal w.r.t raw coal as per provisions contained in the contract agreement and there is no provision for comparing the GCV of washed coal with the GCV of raw coal as has been emphasized by CPRI in its report. VI. Achievable SHR

Comments of CPRI on Station Heat Rate in the report pertaining to fuel audit are misplaced. The SHR is a measure of conversion of heat energy into electric energy. It is not dependent on how the coal is received, stacked and handled. Therefore, comments of CPRI on SHR in the report of fuel audit are not pertinent. CPRI has pointed out that GGSSTP units are capable of achieving 2500 Kcal/KWH, provided equipment wise Renovation of Turbine Modules boiler heaters heat exchangers feed pumps cartridges, controls & instrumentation etc. is implemented through CAPEX (Capital Expenditure). In this regard, M/S CPRI have neither detailed nor quantified the CAPEX for the above. The replacement of these high value equipment is neither having workability in the existing scenario nor having guarantee of assured results. In addition, it also requires longer outages of the units, which PSPCL can ill afford. However, best efforts are being made for improvement in plant performance by implementing various need based R&M schemes.

M/s CPRI have earlier carried out SHR study of GGSSTP units, in which test heat rate was measured as 2259 Kcal/Kwh and annual HR was calculated as 2621 Kcal/Kwh. As per CPRI, by implementing the suggested Short Term, medium Term & long term measures, the achievable SHR could be 2600, 2564 & 2529 Kcal/Kwh respectively. However, need based R&M is being carried out for improvement in heat rate as per techno economical feasibility study of the scheme. CPRI in its report of SHR did not project achievable SHR of GGSSTP Ropar to be 2500 Kcal/Kwh, even after CAPEX. The recommendations given now are contradictory to the earlier ones.

The comments against various recommendations made in fuel audit report are as tabulated below:

Sr.

No.

Recommendation Comment

1 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 Fuel along

with Chief Chemists who will supervise,

perform random quality checks and

GHTP: An eight member committee comprising of six No. ASEs/Sr. Xens, Chief Chemist and Dy. Chief Chemist headed by S.E./Operation has already been constituted and functioning at GHTP to supervise quality of rakes being received at GHTP randomly.


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monitor the entire process of receipt and

reporting of coal quality and quantity

received and consumed in the TPS.

GNDTP: A committee comprising of 7 No. officers (3 No. ASE‟s/Sr.Xen‟s and 4 No. officers from Chemical Deptt.) has already been formed for performing random quality checks of received & bunkered coal and monitor the process of sampling & analysis at GNDTP.

GGSSTP: A panel of 7 no. ASEs, Sr. Xens, Chief/Dy. Chief/Sr. Chemist has been framed for performing random quality checks of received & bunkered coal and monitor the process of sampling & analysis.

The entire process of receipt and reporting of coal quantity received and consumed is being looked after by an independent fuel management cell.

2 The data file composed of gross weight,

wagon Nos. and tare weight may be

made portable to the Fuel Section and

Accounts for archiving of the online data.

There are two No. in motion weigh bridges installed at GHTP & GNDTP and one No. at GGSSTP. The software in respect of one No. weighbridge at GHTP & GNDTP has been upgraded to fetch all data recorded online to other offices at each of the power plants. The software of second weigh bridge at GHTP & GNDTP is being upgraded shortly, and then all data available on the computers will be provided in soft copy to fuel and accounts cells. However online transfer of data from weighbridges to fuel section and accounts wing is being considered.


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3. It is recommended that in GNDTP also,

the wagon dip level measurement may

be taken as the primary measurement

for recording receipt quantity.

At GNDTP, presently LDO is being received through road mode through truck tankers and dip is being taken of the truck tanker as well as the storage tanks to ensure correct receipt. In case of rail rakes the dip of storage tanks is taken before and after unloading to give the measurement of oil. Further, RADAR based system for oil dip measurement in the storage tanks has already been installed. The cabling for the same is in progress and the system is likely to be commissioned shortly during the ongoing activities for commissioning of Unit #3. This shall give quite accurate measurement of oil received and the oil stock.

However, the dip level of individual wagons in case of rail borne supplies shall also be ensured in future at GNDTP.

4. The sampling of both receipt coal as well

as bunkered coal at any time of the day

must be witnessed by an officer level

person since the sample determines the

basis for determining station heat rate

and indirectly relates the quantity of

consumption. Periodic surprise checks by

committee members are essential. The

random table details of which wagon to

take the sample must only be told to the

personnel at the last minute by the

Committee members.

Sampling of rakes received at PSPCL plants is being done randomly in presence of officers of the committee. It is not possible to depute one officer always for checking the sampling of bunkered coal as the same is collected after every twenty minutes at GHTP and every 2 hours at GNDTP & GGSSTP during the running of coal conveyer belts at each unit round the clock. However, the sampling of the bunkered coal is being done in the presence of Senior Chemist.

Instructions regarding not to divulge the random table details before hand are already being complied with.

5. Receipt coal sampling must be only

through automatic samplers under the

supervision of chemists. Chemists must

witness the taking of the samples.

There is no automatic sampler available at PSPCL plants. Further there is no provision of sampling PANEM coal beyond 0.5mt depth in the wagons selected for sampling.


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Automatic samples can go deep inside

the wagon whereas manual sampling

has a tendency to sample only on the

undersurface of the heap.

Use of automatic samplers will be studied and procured, if found feasible.

6. During reduction process of coal samples

coal density (by standard pot's weight

and volume method) should be

measured so that general record of coal

density for particular coal colliery is

available.

The process will be studied for subsequent implementation after consultation with CPRI.

7. Coal stock verification and reconciliation

may be done once a month.

Physical verification and reconciliation of stock is being done by Technical audit wing of PSPCL at end of each quarter. Monthly coal consumption is revised for each month of the quarter based on coal stock found short / excess (as the case may be) after receipt of final coal stock report by technical audit wing of PSPCL. As such monthly coal stock verification is not required.

8. The coal stock verification must be in the

presence of the committee of senior

level officers

The coal stock verification is already being done by Sr. Xen/Technical audit, PSPCL, Patiala who is assisted by Sr. Xen /CHP (Op) and Sr. Xen / Civil.

9. Belt weighers may be installed for all

conveyors feeding to all units before

entrance to the bunkers so that unit wise

coal consumption can be arrived at. The

unit wise coal consumption through belt

weighers is present only in GHTP, Lehra

Mohabbat. The same may be installed in

all units of GGSSTP, Ropar and in all

units of GNDTP, Bathinda. Belt weighers

have emerged as a reliable and cost

effective method of coal measurement.

The signals from the belt weighers give

coal flow in t/h and total flow and are of

the re-setting type. The coal flow from

the coal yard to the units (total

composite flow) can be measured

GHTP: Belt weighers have already been installed at GHTP and functional. Microprocessor based interfaces for belt weighers at Stage-II has been provided and the scheme is under study for stage-I units.

GNDTP: Microprocessor based Belt Weighers are already installed at GNDTP. Instructions have been imparted to the concerned cell (CHP) for taking belt weigher readings based on the trolley movement in order to calculate the coal fed to the individual units. Gravimetric feeders have already being installed at Unit-3 & 4 after R&M which will give unit wise coal


143

through these conveyors. In addition to

the total flow to the units from the belt

weighers, the unit wise consumption is

required to be monitored to provide the

unit wise performance. Microprocessor

based interfaces for belt weighers needs

to be installed or multiple time totalizers.

consumption.

GGSSTP: Belt Weighers are already installed at GGSSTP, which give erratic readings. Gravimetric feeders for the measurement of coal to each mill, are being installed in 1 unit and after their successful performance; the same shall be installed in other units.

At GGSSTP, in CHP only 2 streams are provided which feed all the 3 stages of units, multiple time totalizers may give frequent interruptions, which the existing system can ill afford.

10. The reporting of the reconciled

consumption of coal must be on a

monthly basis. Once the monthly stock

and consumption is reconciled and

arrived at it must be final and there must

be no further reconciliation on a

quarterly, bi-annually or yearly basis.

Coal is reconciled and figures are freezed on monthly basis after receipt of final report by technical audit wing of PSPCL at end of each quarter. No further changes are done in already freezed values.

11. The reporting of the reconciled

consumption of fuel oil must be on a

monthly basis.

Oil is reconciled and figures are freezed on monthly basis after receipt of final report by technical audit wing of PSPCL at end of each quarter. No further changes are done in already freezed values.

13. The drop in GCV between the receipt

coal and bunkered coal may be brought

down to within 150 kcal/kg.

Detailed reply in this regard has been given at Sr. No. (I) above.

14. First-in-first out principle must be

adopted for receipt coals to ensure that

certain lots do not weather for too long.

First in first out principal for receipt coal is already being implemented as far as possible.

15. The joint sampling provision in the FSA

with CIL and other collieries must be

strictly implemented.

Each and every rake received from CIL is being jointly tested by M/s Coal Inspection Service on behalf of PSPCL. For other collieries joint sampling is already being done strictly as per various provisions of the FSAs with them at plant end.

16. Introduction of additional fogging GHTP: Utmost care is being taken to avoid any hot spots in coal


144

systems at various locations in the coal

yard as well as at the junction towers to

avoid spontaneous fires in coal stacks.

stock. However, concerned officers of CHP have been instructed to study the locations where additional fogging system is required to be introduced.

GNDTP: A portable fogging system has already been procured for spray in the CHP & coal pile area.

GGSSTP: Utmost care is being taken to avoid any hot spots in coal stock. Also, a portable water spraying system is being procured for spray in the CHP & coal pile area. However, matter will be discussed for any new & innovative equipments available, if any.

17. Use coal compactors for compaction of

the coal heaps to avoid spontaneous

combustion and also to eliminate

seepage of water and loss of heating

value of the coal.

Compaction is being done with the Bull-Dozers, however possibility of procurement of coal compactor will be studied.

18. Periodic surprise checks to witness the

GCV determination for both receipt coal

as well as bunkered coal in a bomb

calorimeter by committee members is

essential.

Reply as per point No.I of this table

19. Random samples of both receipt coal as

well as bunkered coal or a certain

percentage of samples (5 to 10 %) as

well as third party testing samples may

be sent to independent, impartial truly

third partly central laboratories whose

result 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),

In case of receipt coal, samples can be tested from independent labs only in case of challenge from either party as per FSA. However, committees have been constituted at plant level for checking the quality of rakes randomly. Most of the laboratories suggested by CPRI have already been covered for testing of referee sample with M/s PANEM.

As far as bunkered coal is concerned, GCV is being tested by automatic bomb calorimeter of M/s Parr USA which is amongst the most accurate calorimeters available in the market so there is


145

Dhanbad

CPRI, Bangalore

no need to check the GCV in independent laboratories.

20 It is recommended to go for additional

set of sample primary and secondary

crushing equipment including

pulverizers.

The procurement of additional set of sample crushers and grinders is already under process at GHTP & GNDTP. GGSSTP is already having 2 set of such equipments and both are in working condition, so there is no need of going for any additional sets.

21. 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 recommended for each

station along with room air conditioners

for maintaining the temperature control

of the cooling water.

One number additional automatic

bomb calorimeter is being planned

for procurement for each thermal

power station.

22. The receipt coal GCV which is the basis

for payments must also be a part of

returns filed to Regulatory Commission.

The computation of SHR can still be on

the basis of bunkered coal GCV but this

value must not deviate beyond 150

kcal/kg from the receipt coal GCV value.

Reply as per Sr. No. (I) above.

23. The computation of SHR must be on

daily basis and the monthly value must

be based on daily average. The annual

value must be based on monthly

average. The reporting period for SHR

must be monthly.

As Calorific value and specific coal consumptions are calculated on daily basis so SHR w.r.t. coal energy is already available on daily basis at GHTP & GNDTP. Oil consumption is calculated and finalized at end of each month with dip stick, so SHR is calculated and reported on monthly basis.

At GGSSTP, the same is not possible, as coal consumption is taken on monthly basis. Unit wise coal consumption data is not available, however Gravimetric feeders for measurement of coal to each mill are being installed in 1 unit and after their successful


146

performance; the same shall be installed in other units.

24. An independent third party validation of

the washery energetics to map the yield

as a function of the input raw coal

quality and washed coal quality is

required.

An exercise has been carried out at Sr. No. (V) above, to work out the cost economics of M/s Monnet washed coal vis-à-vis CCL raw coal. Since, M/s Monnet washed coal is economical, so independent third party validation of the washery energetic is not required at this stage.

25. The coal cost (landed price of coal at the

TPS) can be evaluated in 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.

The coal costs can be evaluated in all the three formats.

26. 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

Detailed comments of PSPCL in this regard have been given at Sr. No. (II) above. CERC norm of 0.8% transit loss cannot be made applicable at PSPCL power plants as PSPCL power plants are at the farthest end from coal mines as compared to Central Government generating stations. Therefore the presently allowed limit of transit loss of 2% is reasonable and acceptable.

27. It was noticed that in all the three TPS

wagon positioning equipment (inhaul-

outhaul beetle chargers or side arm

chargers) are either not present or not 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.

GHTP: Efforts are being made to repair side arm chargers installed at Stage-I. No beetle charger or side arm charger exist at wagon tipplers of GHTP Stage-II units. However, procurement of the same under renovation programme will be studied and implemented if found techno economically feasible.


147

GNDTP: There is no space for side arm charger. Proposal regarding beetel chargers shall be studied and shall be implemented if found technically feasible.

GGSSTP: There is no space for side arm chargers, however Beetel chargers are in working condition, which are quite fault prone and also increases the unloading period.

28. Earlier wagon tippler systems were

designed for 500 & 1000 t/h to empty a

rake in 3 h. Present day systems are

available in 1600 t/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.

To upgrade the existing system, complete CHP has to be renovated after dismantling the same, which is not possible as the units have to be stopped for quite a long period. The only possible solution for faster unloading lies in regulated supply (without bunching) from railways, for the supply of coal free from boulders and stones.

29. Detailed study and upgradation of coal

conveying system especially at GNDTP

which is using vibratory feeders.

The OEM of the conveyor system at GNDTP i.e. M/S Elecon was asked to study the existing system and suggest necessary up gradation to achieve the designed capacity of CHP. Firm has submitted its report and the same is being studied for implementation.

30. Rail tracking system through GPS or

alternative technologies

Related to Railways. However, the proposal will be studied.

31. Grab cranes for removal of stones from

the wagon tippler area is present in

Ropar. The same may be installed in

Bhatinda and Lehra Mohabbat

GHTP: Grabber and loader machine already exist and functional at GHTP. One more grabber and loader machine is being procured.

GNDTP; Possibility for installation of Grab crane is being explored keeping in view the space constraint at Wagon Tippler Hopper.

32. Rotary pneumatic or electrical hammers

may be used for crushing coal lumps at

GHTP: Since grabber and loader machine is used to pick coal lumps


148

the wagon tippler in place of manual

hammering.

away from coal grating efficiently where these are manually crushed, so any rotary pneumatic or electrical hammers are not required.

GNDTP: Possibility for installation of Pneumatic /electric hammers is being explored keeping in view the space constraint at Wagon Tippler Hopper.

GGSSTP: Possibility for installation of Pneumatic/electric hammers will be explored.

33. Since loading is in the scope of Monnet,

POL may be brought into the scope of

Monnet.

The contract agreement dated 14.08.2002 was signed between PSEB (now PSPCL) and M/s Monnet Daniels after following competitive bidding route and as per the provision in the contract agreement, POL charges are to borne in the ratio 50:50 by PSPCL and M/s Monnet. The provisions contained in the contract agreement are binding for both the parties.

34. Frequent visits and inspections at the

colliery loading end is essential to

minimize the receipt of stones

Matter is regularly taken up with the CIL to stop dispatching the coal having stones mixed with it. Also loading of good quality coal at loading end is being supervised by our coal liaison agent M/s KCT & Bros.

35. Random sampling of rakes from

washeries and captive mines in the

presence of CIL officials may be

undertaken to sort out the issue with CIL

and convince them that stones are from

CIL.

As per FSA signed with various CIL subsidiaries, stones are to be distributed proportionate to the supplies from various sources of coal. However, efforts will be made in this regard to sort out the issue.

36. The joint witness of weighment and

quality determination at the sending end

must be fully utilized for ensuring that

quality and quantity are in order.

Quantity of each rake is strictly supervised by M/s KCT, whereas quality of each rake is inspected by M/s Coal inspection service on behalf of PSPCL. Witnessing by PSPCL is not practically possible.


149

37. 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.

Each and every rake of PANEM is already being tested. Further, a committee has already been formed as mentioned at Sr. No. 1 above for this purpose.

38. Since washed coal loading is entirely in

the control of Monnet, the POL must be

in the account of the washery. This

clause is recommended to be reviewed

and reverted to include the POL into the

scope of the washery.

Same as at Sr. No. 33 above.

39. GCV of both receipt and washed coal is

to be determined, documented and

reported for each and every rake of coal

input and output of washery.

As brought out in last Para of Sr. No. (V) above, the washery operator is to supply washed coal after reducing the ash %age in washed coal w.r.t raw coal as per provisions contained in the contract agreement and there is no provision for comparing the GCV of washed coal with the GCV of raw coal as has been emphasized by CPRI in its report.

40. Keeping in mind the that the density

differences between coal, mineral matter

and ash are low, the process yield for

various input coals must be got validated

by an independent third party agency

such as CPRI or CFRI, etc..


41. The process energy efficiency map along

with economics for various input coal

GCVs and washed coal GCVs must be

got validated by an independent third

party agency such as CPRI or CFRI, etc..


42. The telemetering system for on-line

information of the in-motion weighbridge

readings of receipt coal received and

beneficiated coal loaded at PSPCL TPS is

essential and must be implemented at

the earliest to provide authentic tamper

proof data on transit loss and total

weighment of both receipt coal and

As per clause 6.6.5 of the contract agreement, after implementation of telemetering, the weighment and quality of washed coal of loading end shall become final. Since, M/s Monnet has not yet commissioned the telemetering, so the quality and weighment of washed coal at the plant end is


150

washed coal dispatched at the Washery. final. As per PSPCL's view point, after telemetering is commissioned, the provisions of becoming loading end results for quality and quantity of washed coal as final, shall be detrimental to PSPCL.

It is further submitted that during discussions with M/s Monnet it has emerged that telemetering could not be commissioned by them due to jamming of communication signals by the Govt. agencies, as N.K. area is prone to Maoist /Naxalite.

43. POL at the loading site of washed coal

may be brought fully into the scope of

Monnet which is presently shared 50:50

by Monnet and PSPCL.


44. The coal loaded into the rakes must

have equilibrium moisture. This is to

ensure that TL does not occur due to

non-equilibrium moisture in coal

evaporating and coal coming back to

equilibrium moisture. Moisture related TL

must be in the scope of the washery.

Coal lost due to increase in moisture is being booked to the firm as per contract signed between M/s Monnet.

45. The cost benefits of the washery process

which is higher by almost 22-28 % to

coal from other sources may be

reviewed. Apart from the clauses on

quantity of washed coal delivered, the

quality process may be reviewed. The

coal lifted by the washery must be

specified in terms of GCV, 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 (parts

per million).

Regarding cost benefits of the washery, the reply is the same as at Sr. No. 24 above.

Since, the work of joint sampling and analysis of CCL raw coal is being carried out jointly by M/s Monnet on PSPCL's behalf with CCL, so M/s Monnet will be asked to provide GCV, ash content and moisture in raw coal, as recommended in the report.

In case of road mode of coal supplies lifted by Monnet from CCL, gross sample of the day is prepared by taking appx. 30 Kg of sample from every eighth truck after selecting one truck randomly from first eight trucks as per


151

clause 1.3 of the FSA with CCL.

46. The transit loss may be fully included in

the scope of the liaisoning agent. The

payments to the Liaison agent must be

linked with the actual coal cost (landed

price: coal +freight), (i.e., Rs. 30/t x coal

weight for the rake) for every 1 % TL.

If the linking of transit loss with the coal cost is considered, then it is apprehended that liaison agent may quote higher rates to cover his risk and the whole exercise may be counter productive.

The above recommendations of the committee are submitted, please.

Chief Engineer / O&M Chief Engineer / O&M GHTP, Lehra Mohabbat GGSSTP, Ropar

Chief Engineer / O&M OSD/Coal Management GNDTP Bathinda PSPCL, Patiala


152

Annexure-IV Description Savings on account of washed coal

supplies from M/s Monnet

Penalty over loading charges As per FSA with CCL, the penal freight for over-loading

charged by the railways is to purchaser's account. Whereas

in case of contract agreement with M/s Monnet, the POL

charges are to be shared by PSPCL and M/s Monnet in the

ratio 50:50. Accordingly, a cushion on account of 50% POL

charges have been taken while working out the cost

economics.

` 13.72 / MT

Sizing charges as per CIL notification

Raw coal size (mm) Charges(`/MT)

(-)250 39 (-)100 61

CCL is supplying raw coal of size (-)250 mm to M/s Monnet. M/s Monnet is supplying (-)100 mm washed coal.

` 61 - ` 39 = ` 22 / MT

Transit Loss

The transit loss in respect of coal supplies from M/s Monnet

is nil, since the payment of plant end is final (as the telemetering has not been commissioned as yet).

PSERC has allowed 2% transit loss in respect of coal supplies from CIL sources.

The landed cost of washed coal works out

as ` 3090.03 / MT. Accordingly, 2% saving in transit loss works out as ` 61.80

/ MT.

Sampling & Analysis services

PSPCL is paying ` 0.30 / MT for the work of sampling and

analysis to M/s Coal Inspection Services Ltd. in respect of

coal supplies from CIL sources. Since, the work of Joint Sampling and Analysis in case of CCL raw coal is being

carried out on PSPCL's behalf with CCL, so there is saving of ` 0.30 / MT.

` 0.30 / MT

Stones

Coal supplies from M/s Monnet are free from stones. CPRI

in its report has observed that the %age of stone in case of GGSSTP Ropar was 1.2 - 1.8%. CIL is reimbursing basic

cost of coal only in respect of stones above 250 mm. Assuming average per MT landed cost of coal in case of

GGSSTP Ropar as ` 3000 and average basic cost of coal

per MT as ` 900, there shall be a saving of about 1.5% of ` 2100 (3000-900) in respect of washed coal supplies from

M/s Monnet since the same are free from stones of all sizes.

` 31.50 / MT

Total Moisture

Based upon clause 9.2 of the FSA with CCL, the average

surface moisture in raw coal is permitted upto 7.33%. In case of washed coal supplies, M/s Monnet is allowed 2.5%

surface moisture over and above the inherent moisture in raw coal i.e. the limit of surface moisture in case of washed

coal supplies from M/s Monnet is 2.5% against 7.33% in

case of raw coal supplies from CCL. Accordingly, a cushion of 4.83% (7.33-2.5) less surface moisture in case of

washed coal supplies from M/s Monnet has been accounted for while calculating the cost economics.

4.83% of landed cost of washed coal i.e.

` 149.25 / MT.

TOTAL SAVINGS ` 278.57 / MT


153

Annex – 4

(CPRI replies to comments by

PSPCL)


154

ENERGY EFFICIENCY AND RENEWABLE ENERGY DIVISION (Tel./FAX : +91 80 23604682; [email protected]; [email protected])

Ref.: CPRI/ERED/PSERC/29/2011-12 Date: 17.07.2012

Fax No.: 01752-215897 Director (Generation), Punjab State Power Corporation Ltd., Patiala. Dear Sir, Sub.: Fuel Audit study at PSPCL Plants Ref.: Your letter No. 310/SET/DG-153 dt. 23.04.2012 Please find enclosed the replies to your above mentioned letter vide ref. 1 above comments on CPRI Fuel audit study. Thanking You, Yours faithfully, [M.S.Bhatt] Additional Director (ERED) Encl.: As above CC to: Secretary, PSERC, Chandigarh. Fax: 0172 – 2664758 / 2645163 / 2602435




155

FUEL STUDY REPORT OF PSPCL TPS FOR PSERC, CHANDIGARH

REPLIES TO POINTS RAISED BY PSPCL IN THEIR MEMO NO.2426/CL/TR/104-VOL.19 DT. 08.06.2012 1. It is agreed that the data of receipt coal GCV was not supplied by PSPCL as the same was not being measured at the time of energy audit. However, the data on bunkered coal was measured and supplied by PSPCL. 2. It is agreed that GCV of receipt coal is calculated by a formula. For the points raised by PSPCL regarding the conversion of UHV into GCV, the primary document is the EXTRAORDINARY GAZETTE OF GOVT. OF INDIA (1986) which is undisputable. UHV estimation formula is based on the formula given in the EXTRAORDINARY GAZETTE OF GOVT. OF INDIA which cannot be disputed. The relationship between UHV and GCV is given in the EXTRAORDINARY GAZETTE (1986) itself. Further the Coal Controller’s report of 2011 indicates the conversion of UHV to GCV as the basis for going for GCV based pricing. FSA has provision for measurement and accounting for Total moisture in both UHV & present GCV regimes. 1. Drop in GCV: The main contention of PSPCL is that the receipt coal GCV is on

the basis of air dried basis (ADB) while the bunkered coal is on the basis of As

fired basis (AFB). The station has stated that there is 4-5 % surface moisture in

receipt coal which corresponds with the drop in GCV when considered on AFB.

However, while computing UHV which is then converted into GCV, the 4-5 %

moisture is already considered via Total moisture provision in the FSA. While it is

true that if moisture content of coal is increased then its GCV drops down, it is

the responsibility of the Station Coal management Cell or Fuel management Cell

to ensure that the GCV of the coal does not fall down. The measurements at

both measurement points at the station (receipt and bunkered) must

be on common basis, i.e., equilibrated moisture conditions, accounting

for total moisture. There cannot be two different methods of

calculations for thermal energy that is paid for and thermal energy that

is used. It is recommended to go for uniform practice for both receipt and

bunkered coal and minimize the difference due to actual drop in heat value to

within 150 kcal/kg.

2. Drop in GCV in new GCV regime: GCV of both receipt coal and bunkered coal

needs to be determined and reported on a common basis. It could be

represented on equilibrated basis as mentioned by PSPCL in view of the new GCV

based fuel supply regime and total moisture effect may be added as per new

FSA. In that case total corrected GCV of coal at the receipt point of the


156

TPS must be reported to the Regulatory Commission for Accounting

Purpose since this GCV is being paid for. In case the reported GCV for

commercial accounting purposes is on the basis of AFB, in that case the GCV of

receipt must also be determined on As Received Basis and the provisions of FSA

must be utilized to reconcile the differences with CIL. The payment is being made

for As Received GCV of coal. If the GCV of coal paid for is different from

that actually obtained, in that case the matter must be taken up with

CIL. It is mentioned that no testing of coal rakes is done at unloading end.

Testing of coal rakes at TPS entrance is essential for ascertaining the

GCV of received coal at the receiving end for the purpose of

reconciliation. It is also mentioned that measurements at loading end does not

represent the true picture due to law and order problems. There is sufficient

provision in FSA for joint sampling which must be enforced rigorously.

Regarding the drop in the TPS it is established beyond doubt that the drop due

to deterioration, increase in surface moisture, etc., in a well maintained system

cannot exceed 60 kcal/kg in a month and not 300 kcal/kg as mentioned by

PSPCL. In case the drop is more, then the Coal Plant infrastructure needs to be

improved to prevent deterioration of coal in the coal yard.

3. Steps required by PSPCL to ensure that the loss of heating value is

within 150 kcal/kg are: Enforcing joint sampling more rigorously, ensuring that coal paid for is actually of the heating value supplied, development of a standard process of GCV reporting and improvement in coal yard infrastructure.

4. Already reduced cost of generation: The PSPCL has brought out that the

generation cost is the lowest for its stations as compared to other stations. The overall impact of GCV on the cost of generation is around 10-18 p/kWh. The low cost of generation of PSPCL stations is also on account of the good coal linkages and coal from captive mines. Hence a direct relation cannot be established between the PSPCL and other stations. Drop in GCV at the station cannot be justified on the ground that the impact is 10-18 p/kWh.

6. Transit loss: We have recommended to allow a transit loss of 0.8 % in line with the national trend followed in stations with similar transit distances. It must be remembered that almost 60-90 % of the coal is from Panem for which transit loss is not applicable. Further, the GCV of coal received by PSPCL is almost 1200-1500 kcal/kg higher than the national average. The annual transit loss (excluding Panem) for 2011-12 is 1.23 % for GGSSTP, 1.25 % for GHTP and 0.08 % for GNDTP. Hence we have recommended a transit loss of 0.8 % on par with CERC norms and norms set for other utilities. 7. Freight in respect of Monnet: While considering the cost the entire process must be considered from the purchase of raw coal in mine to the finished washed


157

coal at the TPS. The freight cannot be considered only in isolation for washed coal and must be considered for the whole cycle. 8. Washery processes: While it is agreed that washed coal is an essential requirement considering the Govt. of India‟s comprehensive fuel policy, the efficiency of the washing process must not be an uncontrolled parameter and must be a parameter in the control of the TPS. Hence, we have suggested to go in for validation of the processes. The processes have to be controllable from the view point of energy efficiency.


158

Sl. No.

Recommendations Comment CPRI REMARKS ON PSPCL COMMENTS

Coal- Overall process

01 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 Fuel along with Chief Chemists who will supervise, perform random quality checks and monitor the entire process of receipt and reporting of coal quality and quantity received and consumed in the TPS.

GHTP: An eight member committee comprising of six No. ASEs/Sr. Xens, Chief Chemist and Dy. Chief Chemist headed by S.E./Operation has already been constituted and functioning at GHTP to supervise quality of rakes being received at GHTP randomly.

GNDTP: A committee comprising of 7 No. officers (3 No. ASE‟s/Sr.Xen‟s and 4 No. officers from Chemical Deptt.) has already been formed for performing random quality checks of received & bunkered coal and monitor the process of sampling & analysis at GNDTP.

GGSSTP: A panel of 7 no. ASEs, Sr. Xens, Chief/Dy. Chief/Sr. Chemist has been framed for performing random quality checks of received & bunkered coal and monitor the process of sampling & analysis.

The entire process of receipt and reporting of coal quantity received and consumed is being looked after by an independent fuel management cell.

OK

Coal-Recording (quantity)


159

02 The data file composed of gross weight, wagon nos and tare weight may be made portable to the Fuel Section and Accounts for archiving of the online data.

There are two No. in motion weigh bridges installed at GHTP & GNDTP and one No. at GGSSTP. The software in respect of one No. weighbridge at GHTP & GNDTP has been upgraded to fetch all data recorded online to other offices at each of the power plants. The software of second weigh bridge at GHTP & GNDTP is being upgraded shortly, and then all data available on the computers will be provided in soft copy to fuel and accounts cells. However online transfer of data from weighbridges to fuel section and accounts wing is being considered.

OK

Fuel oil-Recording (quantity)

03 It is recommended that in GNDTP also, the wagon dip level measurement may be taken as the primary measurement for recording receipt quantity.

At GNDTP, presently LDO is being received through road mode through truck tankers and dip is being taken of the truck tanker as well as the storage tanks to ensure correct receipt. In case of rail rakes the dip of storage tanks is taken before and after unloading to give the measurement of oil. Further, RADAR based system for oil dip measurement in the storage tanks has already been installed. The cabling for the same is in progress and the system is likely to be commissioned shortly during the ongoing activities for commissioning of Unit #3. This shall give quite accurate measurement of oil received and the oil

OK


160

stock.

However, the dip level of individual wagons in case of rail borne supplies shall also be ensured in future at GNDTP.

Coal Sampling

04 Sampling: The sampling of both receipt coal as well as bunkered coal at any time of the day must be witnessed by an officer level person since the sample determines the basis for determining station heat rate and indirectly relates the quantity of consumption. Periodic surprise checks by committee members are essential. The random table details of which wagon to take the sample must only be told to the personnel at the last minute by the Committee members.

Sampling of rakes received at PSPCL plants is being done randomly in presence of officers of the committee. It is not possible to depute one officer always for checking the sampling of bunkered coal as the same is collected after every twenty minutes at GHTP and every 2 hours at GNDTP & GGSSTP during the running of coal conveyer belts at each unit round the clock. However, the sampling of the bunkered coal is being done in the presence of Senior Chemist.

Instructions regarding not to divulge the random table details before hand are already being complied with.

OK

05 Sampling improvement: Receipt coal sampling must be only through automatic samplers under the supervision of chemists. Chemists must witness the taking of the samples. Automatic samples can go deep inside the wagon whereas manual sampling has a tendency to sample only on the undersurface of the heap.

There is no automatic sampler available at PSPCL plants. Further there is no provision of sampling PANEM coal beyond 0.5mt depth in the wagons selected for sampling. Use of automatic samplers will be studied and procured, if found feasible.

OK


161

06 Bulk density determination: During reduction process of coal samples coal density (by standard pot's weight and volume method) should be measured so that general record of coal density for particular coal colliery is available.

The process will be studied for subsequent implementation after consultation with CPRI.

OK

Coal Consumption calculation & Verification of stocks

07 Coal stock verification and reconciliation may be done once a month.

Physical verification and reconciliation of stock is being done by Technical audit wing of PSPCL at end of each quarter. Monthly coal consumption is revised for each month of the quarter based on coal stock found short / excess (as the case may be) after receipt of final coal stock report by technical audit wing of PSPCL. As such monthly coal stock verification is not required.

Monthly stock verification is being practiced in most utilities because the month is used as unit for Heat rate reconciliation.

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

The coal stock verification is already being done by Sr. Xen/Technical audit, PSPCL, Patiala who is assisted by Sr. Xen /CHP (Op) and Sr. Xen / Civil.

OK

09 Belt weighers: Belt weighers may be installed for all conveyors feeding to all units before entrance to the bunkers so that unit wise coal consumption can be arrived at. The unit wise coal consumption through belt weighers is present only in GHTP, Lehra Mohabat. The same may be installed in all units of GGSSTP, Ropar and

GHTP: Belt weighers have already been installed at GHTP and functional. Microprocessor based interfaces for belt weighers at Stage-II has been provided and the scheme is under study for stage-I units.

GNDTP: Microprocessor based Belt Weighers are already installed at GNDTP. Instructions have been imparted to the

OK


162

in all units of GNDTP, Bhatinda. Belt weighers have emerged as a reliable and cost effective method of coal measurement. The signals from the belt weighers give coal flow in t/h and total flow and are of the re-setting type. The coal flow from the coal yard to the units (total composite flow) can be measured through these conveyors. In addition to the total flow to the units from the belt weighers, the unit wise consumption is required to be monitored to provide the unit wise performance. Microprocessor based interfaces for belt weighers needs to be installed or multiple time totalizers.

concerned cell (CHP) for taking belt weigher readings based on the trolley movement in order to calculate the coal fed to the individual units. Gravimetric feeders have already being installed at Unit-3 & 4 after R&M which will give unit wise coal consumption.

GGSSTP: Belt Weighers are already installed at GGSSTP, which give erratic readings. Gravimetric feeders for the measurement of coal to each mill, are being installed in 1 unit and after their successful performance; the same shall be installed in other units.

At GGSSTP, in CHP only 2 streams are provided which feed all the 3 stages of units, multiple time totalizers may give frequent interruptions, which the existing system can ill afford.

Coal-Reporting (quantity)

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

Coal is reconciled and figures are freezed on monthly basis after receipt of final report by technical audit wing of PSPCL at end of each quarter. No further changes are done in already freezed values.

Monthly reconciliation cannot be done with quarterly measurement. Hence monthly coal stock reconciliation is required.

Fuel oil- Reporting (quantity)

11 The reporting of the reconciled consumption must be on a monthly basis.

Oil is reconciled and figures are freezed on monthly basis after receipt of final report by

OK


163

technical audit wing of PSPCL at end of each quarter. No further changes are done in already freezed values.

Significance of the heating value of coal & oil

13 The drop in GCV between the receipt coal and bunkered coal may be brought down to within 150 kcal/kg.

Detailed reply in this regard has been given at Sr. No. (I) above.

Discussed separately. While the main contention of PSPCL is that the measuring methods are different, this has a technical implication on the quantum of thermal energy purchased and quantum of thermal energy actually fed into the boiler. The energy loss in coal can be of reasonable order of 150 kcal/kg. Higher energy loss implies loss of thermal energy either in the account process or physically. This needs to be addressed immediately through introduction of measurement of GCV of coal at the receipt end or tippled end of the TPS.

14 First-in-first out principle must be adopted for receipt coals to ensure that certain lots do not weather for too long.

First in first out principal for receipt coal is already being implemented as far as possible.

OK

15 The joint sampling provision in the FSA with CIL and other collieries must be strictly

Each and every rake received from CIL is OK


164

implemented. being jointly tested by M/s Coal Inspection Service on behalf of PSPCL. For other collieries joint sampling is already being done strictly as per various provisions of the FSAs with them at plant end.

16 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.

GHTP: Utmost care is being taken to avoid any hot spots in coal stock. However, concerned officers of CHP have been instructed to study the locations where additional fogging system is required to be introduced.

GNDTP: A portable fogging system has already been procured for spray in the CHP & coal pile area.

GGSSTP: Utmost care is being taken to avoid any hot spots in coal stock. Also, a portable water spraying system is being procured for spray in the CHP & coal pile area. However, matter will be discussed for any new & innovative equipments available, if any.

OK

17 Use coal compactors for compaction of the coal heaps to avoid spontaneous combustion and also to eliminate seepage of water and loss of heating value of the coal.

Compaction is being done with the Bull-Dozers, however possibility of procurement of coal compactor will be studied.

OK

Coal-Method of testing fuel quality at site

18 Periodic surprise checks of witness the Reply as per point No.I of this table OK


165

GCV determination for both receipt coal as well as bunkered coal in a bomb calorimeter by committee members is essential.

19 Random samples of both receipt coal as well as bunkered coal or a certain percentage of samples (5 to 10 %) as well as third party testing samples may be sent to independent, impartial truly third partly central laboratories whose result 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

In case of receipt coal, samples can be tested from independent labs only in case of challenge from either party as per FSA. However, committees have been constituted at plant level for checking the quality of rakes randomly. Most of the laboratories suggested by CPRI have already been covered for testing of referee sample with M/s PANEM.

As far as bunkered coal is concerned, GCV is being tested by automatic bomb calorimeter of M/s Parr USA which is amongst the most accurate calorimeters available in the market so there is no need to check the GCV in independent laboratories.

OK

20 It is recommended to go for additional set of sample primary and secondary crushing equipment including pulverizers.

The procurement of additional set of sample crushers and grinders is already under process at GHTP & GNDTP. GGSSTP is already having 2 set of such equipments and both are in working condition, so there is no need of going for any additional sets.

OK

21 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

One number additional automatic bomb

calorimeter is being planned for

procurement for each thermal power

OK


166

additional automatic multi-sample bomb calorimeter is recommended for each station along with room air conditioners for maintaining the temperature control of the cooling water.

station.

Basis for working out station heat rate (SHR)

22 The receipt coal GCV which is the basis for payments must also be a part of returns filed to Regulatory Commission. The computation of SHR can still be on the basis of bunkered coal GCV but this value must not deviate beyond 150 kcal/kg from the receipt coal GCV value.

Reply as per Sr. No. (I) above. Discussed separately and as in point No. 13 above.

23 The computation of SHR must be on daily basis and the monthly value must be based on daily average. The annual value must be based on monthly average. The reporting period for SHR must be monthly.

As Calorific value and specific coal consumptions are calculated on daily basis so SHR w.r.t. coal energy is already available on daily basis at GHTP & GNDTP. Oil consumption is calculated and finalized at end of each month with dip stick, so SHR is calculated and reported on monthly basis.

At GGSSTP, the same is not possible, as coal consumption is taken on monthly basis. Unit wise coal consumption data is not available, however Gravimetric feeders for measurement of coal to each mill are being installed in 1 unit and after their successful performance; the same shall be installed in other units.

OK May be implemented after installation of gravimetric feeders.


167

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

24 An independent third party validation of the washery energetics to map the yield as a function of the input raw coal quality and washed coal quality is required.

An exercise has been carried out at Sr. No. (V) above, to work out the cost economics of M/s Monnet washed coal vis-à-vis CCL raw coal. Since, M/s Monnet washed coal is economical, so independent third party validation of the washery energetic is not required at this stage.

CPRI feels that this is essential to map the yield as a function of the input raw coal quality. Energy efficiency of washing process cannot be an undefined quantity. There is scope for improvement in yield by few percentage points.

25 The coal cost (landed price of coal at the TPS) can be evaluated in 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.

The coal costs can be evaluated in all the three formats.

OK

Transit loss (TL)

26 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

Detailed comments of PSPCL in this regard have been given at Sr. No. (II) above. CERC norm of 0.8% transit loss cannot be made applicable at PSPCL power plants as PSPCL power plants are at the farthest end from coal mines as compared to Central Government generating stations. Therefore the presently allowed limit of transit loss of

Transit loss has not been found to have relationship to distance of transfer.


168

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.

2% is reasonable and acceptable.

Demmurages

27 It was noticed that in all the three TPS wagon positioning 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.

GHTP: Efforts are being made to repair side arm chargers installed at Stage-I. No beetle charger or side arm charger exist at wagon tipplers of GHTP Stage-II units. However, procurement of the same under renovation programme will be studied and implemented if found techno economically feasible.

GNDTP: There is no space for side arm charger. Proposal regarding beetel chargers shall be studied and shall be implemented if found technically feasible.

GGSSTP: There is no space for side arm chargers, however Beetel chargers are in working condition, which are quite fault prone and also increases the unloading period.

OK

28 Earlier wagon tippler systems were designed for 500 & 1000 t/h to empty a rake in 3 h. Present day systems are available in 1600 t/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.

To upgrade the existing system, complete CHP has to be renovated after dismantling the same, which is not possible as the units have to be stopped for quite a long period. The only possible solution for faster unloading lies in regulated supply (without bunching) from railways, for the supply of

This option must be kept open in view of the future increase in carrying capacity of wagons by railways.


169

coal free from boulders and stones.

29 Detailed study and upgradation of coal conveying system especially at GNDTP which is using vibratory feeders.

The OEM of the conveyor system at GNDTP i.e. M/S Elecon was asked to study the existing system and suggest necessary up gradation to achieve the designed capacity of CHP. Firm has submitted its report and the same is being studied for implementation.

OK


Related to Railways. However, the proposal will be studied.

OK

31 Grab cranes for removal of stones from the wagon tippler area is present in Ropar. The same may be installed in Bhatinda and Lehra Mohabat

GHTP: Grabber and loader machine already exist and functional at GHTP. One more grabber and loader machine is being procured.

GNDTP; Possibility for installation of Grab crane is being explored keeping in view the space constraint at Wagon Tippler Hopper.

OK

32 Rotary pneumatic or electrical hammers may be used for crushing coal lumps at the wagon tippler in place of manual hammering.

GHTP: Since grabber and loader machine is used to pick coal lumps away from coal grating efficiently where these are manually crushed, so any rotary pneumatic or electrical hammers are not required.

GNDTP: Possibility for installation of Pneumatic /electric hammers is being explored keeping in view the space constraint at Wagon Tippler Hopper.

OK


170

GGSSTP: Possibility for installation of Pneumatic/electric hammers will be explored.

Penal overloading charges (POL)

33 Since loading is in the scope of Monnet, POL may be brought into the scope of Monnet.

The contract agreement dated 14.08.2002 was signed between PSEB (now PSPCL) and M/s Monnet Daniels after following competitive bidding route and as per the provision in the contract agreement, POL charges are to borne in the ratio 50:50 by PSPCL and M/s Monnet. The provisions contained in the contract agreement are binding for both the parties.

PSPCL may look for earliest opportunity to change the contract agreement.

Costs associated with stones and non-fuel foreign materials in coal

34 Frequent visits and inspections at the colliery loading end is essential to minimize the receipt of stones

Matter is regularly taken up with the CIL to stop dispatching the coal having stones mixed with it. Also loading of good quality coal at loading end is being supervised by our coal liaison agent M/s KCT & Bros.

OK

35 Random sampling of rakes from washeries and captive mines in the presence of CIL officials may be undertaken to sort out the issue with CIL and convince them that stones are from CIL.

As per FSA signed with various CIL subsidiaries, stones are to be distributed proportionate to the supplies from various sources of coal. However, efforts will be made in this regard to sort out the issue.

OK

FSA with Coal India Ltd (CIL)- STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)


171

36 The joint witness of weighment and quality determination at the sending end must be fully utilized for ensuring that quality and quantity are in order.

Quantity of each rake is strictly supervised by M/s KCT, whereas quality of each rake is inspected by M/s Coal inspection service on behalf of PSPCL. Witnessing by PSPCL is not practically possible.

OK

FSA with captive mines (Panem)- STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

37 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.

Each and every rake of PANEM is already being tested. Further, a committee has already been formed as mentioned at Sr. No. 1 above for this purpose.

OK

FSA with coal washeries (Monnet Daniel, ACBL)- STUDY OF FUEL SUPPLY AGREEMENTS (FSAs)

38 Since washed coal loading is entirely in the control of Monnet, the POL must be in the account of the washery. This clause is recommended to be reviewed and reverted to include the POL into the scope of the washery.

Same as at Sr. No. 33 above. PSPCL may look for earliest opportunity to change the contract agreement.


39 GCV of both receipt and washed coal is to be determined, documented and reported for each and every rake of coal input and output of washery.

As brought out in last Para of Sr. No. (V) above, the washery operator is to supply washed coal after reducing the ash %age in washed coal w.r.t raw coal as per provisions contained in the contract agreement and there is no provision for comparing the GCV of washed coal with the GCV of raw coal as has been emphasized by CPRI in its report.

This is required to know the heat content that is finally realized after washing - to determine the energy efficiency of washing. Energy efficiency of washing process cannot be an undefined quantity.


172

40 Keeping in mind the that the density differences between coal, mineral matter and ash are low, the process yield for various input coals must be got validated by an independent third party agency such as CPRI or CFRI, etc.

Same as at Sr. No. 24 above. This is required to know the heat content that is finally realized after washing - to determine the energy efficiency of washing. Energy efficiency of washing process cannot be an undefined quantity.

41 The process energy efficiency map along with economics for various input coal GCVs and washed coal GCVs must be got validated by an independent third party agency such as CPRI or CFRI, etc..

Same as at Sr. No. 24 above. This is required to know the heat content that is finally realized after washing - to determine the energy efficiency of washing. Energy efficiency of washing process cannot be an undefined quantity.

42 The telemetering system for on-line information of the in-motion weighbridge readings of receipt coal received and beneficiated coal loaded at PSPCL TPS is essential and must be implemented at the earliest to provide authentic tamper proof data on transit loss and total weighments of both receipt coal and washed coal dispatched at the Washery.

As per clause 6.6.5 of the contract agreement, after implementation of telemetering, the weighment and quality of washed coal of loading end shall become final. Since, M/s Monnet has not yet commissioned the telemetering, so the quality and weighment of washed coal at the plant end is final. As per PSPCL's view point, after telemetering is commissioned, the provisions of becoming loading end results for quality and quantity of washed coal as final, shall be detrimental to PSPCL.

It is further submitted that during discussions with M/s Monnet it has emerged

OK


173

that telemetering could not be commissioned by them due to jamming of communication signals by the Govt. agencies, as N.K. area is prone to Maoist /Naxalite.

43 POL at the loading site of washed coal may be brought fully into the scope of Monnet which is presently shared 50:50 by Monnet and PSPCL.

Same as at Sr. No. 33 above. PSPCL may look for earliest opportunity to change the contract agreement.

44 The coal loaded into the rakes must have equilibrium moisture. This is to ensure that TL does not occur due to non-equilibrium moisture in coal evaporating and coal coming back to equilibrium moisture. Moisture related TL must be in the scope of the washery.

Coal lost due to increase in moisture is being booked to the firm as per contract signed between M/s Monnet.

What about TL. TL must be in the scope of the washery.

45 The cost benefits of the washery process which is higher by almost 22-28 % to coal from other sources, may be reviewed. Apart from the clauses on quantity of washed coal delivered, the quality process may be reviewed. The coal lifted by the washery must be specified in terms of GCV, 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 (parts per million).

Regarding cost benefits of the washery, the reply is the same as at Sr. No. 24 above.

Since, the work of joint sampling and analysis of CCL raw coal is being carried out jointly by M/s Monnet on PSPCL's behalf with CCL, so M/s Monnet will be asked to provide GCV, ash content and moisture in raw coal, as recommended in the report.

In case of road mode of coal supplies lifted by Monnet from CCL, gross sample of the day is prepared by taking appx. 30 Kg of sample from every eighth truck after selecting one truck randomly from first eight

CPRI feels that this is essential to map the yield as a function of the input raw coal quality. Energy efficiency of washing process cannot be an undefined quantity and must not be left open ended.


174

trucks as per clause 1.3 of the FSA with CCL.

Agreement with liasioning agent

46 The transit loss may be fully included in the scope of the liasioning agent. The payments to the Liasion agent must be linked with the actual coal cost (landed price: coal +freight), (i.e., Rs. 30/t x coal weight for the rake ) for every 1 % TL.

If the linking of transit loss with the coal cost is considered, then it is apprehended that liaison agent may quote higher rates to cover his risk and the whole exercise may be counter productive.

This may be considered in future agreements.


175

Annex – 5

(CPRI comments on discussion

points raised by PSPCL)


176

FUEL STUDY REPORT OF PSPCL TPS FOR PSERC, CHANDIGARH

REPLIES TO POINTS RAISED DURING DISCUSSIONS BY PSPCL AT PSERC 20.07.2012 1. It was brought out by PSPCL that GCV measurement at sending end is only under equilibrated condition (i.e., with inherent moisture and without surface moisture). PSPCL brought out that surface moisture of the order of 4-5 % can result in a drop in GCV of 600-750 kcal/kg in the receipt coal. CPRI comments: The issue may be taken up with appropriate authority for inclusion of the surface moisture at sending end in the GCV computation thereby giving a more realistic picture of receipt coal GCV. The as-received basis of GCV would be a more realistic representation of the coal actually sent out by the colliery and received by the plant. The issue may also be taken up with appropriate authority for deduction of weight of surface moisture (besides deduction in GCV) at sending end for purchased coal. 2. It was brought out that non inclusion of surface moisture was one of the reasons for the GCV drop in bunkered coal as receipt coal at the TPS end was not being presently measured for GCV. CPRI comments: The receipt coal GCV measurement for all receipt coal at the TPS wagon tipplers may be measured. The process followed for measurement could be in two parts: (a) determination of GCV under equilibrated conditions and (b) determination of total moisture from which the surface moisture can be computed. The effect of surface moisture can be added to GCV at 145 kcal/kg for every 1 % surface moisture. 3. The non existence of a uniform process of measurement both under the previous UHV and also present GCV regimes was brought out by PSPCL. CPRI comments: Sending end coal at the colliery end is being measured on equilibrated basis in a bomb calorimeter and total moisture is being recorded (surface moisture is known but not being considered for GCV correction). The receiving end coal (at tippler of TPS) and bunkered coal (bunkering belts) going into the boilers may also be measured on equilibrated basis through a bomb calorimeter. In the case of both receiving end coal and bunkered coal, the surface moisture effect may be added to the GCV @ 145 kcal/kg for 1 %. This process would ensure uniformity in coal GCV measurement in receipt and bunkered coals and would provide a platform for equitable comparison of drop in GCV. The drop between receipt coal and bunkered coal as per various authentic sources and studies as given in the report should not exceed 150 kcal/kg through adoption of coal preservation measures given in the report such as compacting, etc. 4. It was brought out by CPRI that there is mention to the total moisture, surface moisture and its effect on quality in the FSA of coal India as follows:


177

FSA of CIL & STATE GENCO

“Equilibrated Basis” means determination/computation of various

quality parameters such as but not limited to ash, volatile matter, fixed

carbon, Gross Calorific 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 after equilibrating at 60% relative humidity (RH) and 40 degree Celsius as per the relevant provisions (relating to determination of equilibrated moisture at 60% RH and 40 degree Celsius) of BIS 1350 of 1959 or amendment thereof.

“Surface Moisture” means the moisture content present in Coal that is derived as the difference between Total Moisture and Equilibrated Moisture, and expressed in percentage terms.

“Total Moisture” means the total moisture content (including surface moisture) expressed as percentage present in Coal and determined on as delivered basis in pursuance to IS.

11.2 Adjustment for analyzed quality/ Grade 11.2.1 The bills with regard to adjustment for quality, as determined

under Clause 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)

The same may be pursued with appropriate authority for GCV correction for surface moisture at the sending end. The same is also applicable to coal from captive mines. 5. Washed coal: PSPCL pointed out that the saving in cost of coal dumping in ash dyke is not considered and if this is considered the washing process will be much more favorable. CPRI comments: While it is agreed that washing of coal is a mandatory and environmentally beneficial process, regarding the conversion efficiency of washed coal there is some scope for improvement in conversion efficiency which may be pursued. 5. In Conclusion:

A uniform procedure of measuring GCV must be adopted, i.e., measuring GCV

in a bomb calorimeter in equilibrated condition (with only inherent moisture)

and the surface moisture (measured through measurement of total moisture


178

for the same sample) must be measured. The effect of surface moisture on

GCV must be added to the GCV obtained through equilibrated conditions to

give the As supplied GCV (at sending end), As received GCV (at

unloading end) and As fired GCV (at the entrance to the bunkers)

on a common and comparable basis.

The difference between the As received coal GCV and As fired coal GC may

be maintained below 150 kcal/kg.

The differences between As supplied (sending end) coal GCV and As received

coal GCV may be taken up with appropriate authority.

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