Power cost in Hry to rise as state moves to replenish coal stocks
CHANDIGARH: The cost of electricity generation in Haryana is set to escalate with the Haryana Power Generation Corporation Ltd (HPGCL) ordering purchase of about 9.04 lakh metric tonne (MT) imported coal to tide over the coal shortage.
The purchase of expensive imported coal is being done as the Union power ministry in April had advised the power generation companies to use imported coal for blending purposes to the extent of 10% instead of 4% to enable stocking of coal at power plants as per the revised stocking norms.
Imported coal to be bought at $189 per MT
“The HPGCL has accepted the bid of Mohit Minerals Ltd for supply of 9.04 lakh MT imported coal as the cost, insurance and freight (CIF) price of $189 per MT. About 4.30 lakh MT will be used for blending at Khedar thermal power plant in Hisar, 2.50 lakh MT at Panipat thermal power plant and 2.24 lakh MT at Yamunanagar thermal power plant,” said a power official.
Asked about escalation in the cost of energy generation due to imported coal, power officials said the increase depended on the extent of blending of imported coal. “The power generation cost will increase by around 0.90 paise per unit due to use of imported coal. It will be passed on to the consumer in the form of fuel surcharge adjustment (FSA),” said an official.
Union power ministry pushes states to procure imported coal
The Union power ministry in December 2021 had told the states that due to increased demand and consumption of electricity, the share of coalbased power generation has increased since July 2021. As a consequence, the coal consumption at power generating units has increased but the coal supply from subsidiaries of Coal India Ltd was not commensurate with the requirement of thermal power plants.
“Thus, the coal stock available with power plants is low. Accordingly, the states are advised to procure imported coal for blending during 2022-23 to avoid depletion of stocks to critical level,” the central ministry wrote.
State power officials said that Union power ministry estimated that the imported coal requirement for three thermal plants of HPGCL at 4% blending with 85% plant load factor at about 3.62 lakh MT.
However, in April the Union power ministry advised the state generation companies and independent power producers to use imported coal for blending purposes to the extent of 10% instead of 4% as this will ensure maintaining adequate coal stocks at the thermal power plants as per the advised coal stock norms.
“The state government was also asked to expedite the procurement process of imported coal so that imported coal for blending is received by power plants by June end. Accordingly, the revised requirement of imported coal for our thermal plants was worked out to 9.04 lakh MT,” officials said.
The Union ministry of power on April 28 asked the state government that the procurement process be finalised before May 31 so that the delivery of 50% of allocated quantity is completed by June 30, 40% by August 31 and 10% by October 31, officials said.
Worry on account of domestic coal as well
The state government is also anxious regarding the purchase of domestic coal through road cum rail (RCR) mode. The HPGCL is buying 4.50 lakh MT domestic coal which will be transported from coal mines in Ranchi and Singrauli through road cum rail (RCR) mode.
The apprehension is that it is difficult to ensure quality control for the coal transported through RCR mode.
“For instance, most of our coal mines are located about 30-35km away from the railway goods shed sidings. This means that coal consignments would have to be dispatched through roads for this distance. It is difficult to ensure that the coal of a certain calorific value sent from the coal mine reaches the railway siding as local transporters and mafia change the consignments with coal of low calorific value,” an official said.