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Web Exclusive | May 2013

Some state utilities refuse to buy coal

Even as the country's power sector faces severe coal shortage, government sources informed that some state power companies hesitate to buy coal in view of adequate coal stock at their power stations.

These include state power distribution utilities in West Bengal, Haryana and Gujarat. Also, high price of premium grade coal prevented some power distribution companies from buying it.

The generation schedule could not be prepared as there were no buyers for the expensive power which would have been generated from the plant, some reports indicate.

SECL (South Eastern Coalfields) is said to be witnessing decline in demand for its higher grade coal from the Korea-Rewa coal mines.

Owing to delay in strengthening of sub-transmission and distribution network, Haryana Power Generation Company (HPGCL) refused to procure coal.

These discoms are unable to absorb available power with them. This has resulted in backing down of Rajiv Gandhi and Panipat thermal power stations and in turn piling of coal stock at HPGCL's power stations, media reports indicate.

West Bengal Power Development Corporation Limited (WBPDCL) and Damodar Valley Corporation had also urged the government to stop the supply of coal from Raniganj coal of ECL (Eastern Coalfields) due to its higher cost.

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