UPRVUN wants nod to import expensive coal

According to a calculation done by the nigam, it will require around 20 lakh metric tonnes of imported coal in a year to blend the same with domestic coal

LUCKNOW: The Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN) has sought “clear” directions from the state government on whether it should import expensive coal to meet the fuel requirement in power plants, considering the fact that buying foreign coal will necessitate increase in electricity prices.

Over a week ago, the central government issued an advisory to states asking them to import foreign coal for 10% blending with domestic coal at their power stations, so that they can optimally utilize domestic coal in plants nearer to mines and thus maintain adequate fuel inventory (stock) to continue normal power production.

“What the centre has issued is only an advisory which is not mandatory for states, but at the same time, the union power ministry is closely monitoring the situation and holding regular meetings with states in this regard,” a senior energy department official said.

Though it is unable to maintain coal stock as per norms due to which power production is being affected, the utpadan nigam is believed to be reluctant to the idea of blending imported coal, which is too expensive.

On Friday itself, the nigam’s Harduaganj, Parichha and Obra plants together lost around 14 million units of power generation due to coal paucity.

Early this week, the UP Electricity Regulatory Commission (UPERC), too, posed certain technical questions to the nigam asking it to reply to all questions at the earliest before it floated a tender to buy imported coal.

The questions it asked included whether the nigam’s plants were technically fit enough to use imported coal, and made it clear that it might be difficult for the commission to consider excess expenditure eligible for fuel price passthrough in absence of logical response to all queries.

In view of the central government’s advisory and UP Electricity Regulatory Commission’s directives, the nigam on Thursday wrote a letter to the state government seeking its directions on whether to buy imported coal or not, pointing out that doing so might make electricity costlier at consumers’ end, too.

The government, according

The blending of foreign coal will definitely make power costlier for consumers in Uttar Pradesh and the state government must not allow the Uttar Pradesh Rajya Vidyut Utpadan Nigam to float a tender for purchase of imported coal AVDHESH KUMAR VERMA, UP Rajya Vidyut Upbhokta Parishad chairman

to an energy department official, told the nigam that it was an independent corporation and should take a decision on imported coal on its own after examining the requirement.

“But there should not be any shortage of power due to coal shortage or otherwise,” the government told the Uttar Pradesh Rajya Vidyut Utpadan Nigam .

The nigam, it is said, is in a state of confusion over the issue of purchase of imported coal and wants to play safe by having clear-cut directions from the state government.

“The nigam has again written a letter to the government requesting it to give it directions in unambiguous terms on whether to buy imported coal, keeping in mind all implications, including cost of imported coal,” the official said.

The current price of imported coal is said to around Rs 17,000 per tonne and cost is increasing fast, while price of domestic coal is only around Rs 1,700 per tonne depending on the distance between the plant and coal mine.

According to a calculation done by the nigam, it will require around 20 lakh metric tonnes of imported coal in a year to blend the same with domestic coal, going by the centre’s advisory.

UP Rajya Vidyut Upbhokta Parishad chairman Avdhesh Kumar Verma, who opposed the centre’s advisory at different platforms, said on the one hand union power minister RK Singh only recently informed the Lok Sabha that there was no shortage of coal in the country and on the other his ministry is asking states to blend foreign coal.

“The blending of foreign coal will definitely make power costlier for consumers in Uttar Pradesh and the state government must not allow the nigam to float a tender for purchase of imported coal,” Avdhesh Kumar Verma said.