Power crisis looms in Punjab as coal prices soar

Tribune News Service

Ruchika M Khanna

Chandigarh, March 25

The never-seen-before increase in the prices of coal, which is needed to fuel thermal power plants, has led to a sharp jump in the cost of power production. This has not just burdened the state power utilities, but has also led to threat of a looming power crisis as plants shut down.

Release entire allocation, Centre urged

• PSPCL officials say they have requested the Centre to give the state entire annual allocation of coal now. This will help them run power plants to their optimum capacity and meet the demand
• “By June, we are hopeful of our own captive coal mine atPachhwara to become operational. We have also gone in for power banking, and sufficient power will be available by the time paddy season starts,” said Baldev Singh Sran, CMD, PSPCL

1,000 MW Average rise in electricty demand

7,395 MW- 8,490 MW Daily requirement during past fortnight

15,000 MW Expected demand in paddy season

A unit of GvK Power at Goindwal Sahib and another of Guru Gobind Singh Super Thermal Power Plant at Ropar have shut down. Two units of Talwandi Sabo Power Limited are reportedly running on less capacity due to coal shortage, confirm official sources. The coal linkage to the private power plants is reportedly less than their installed power production capacity. Also, the high cost of coal has led to the state not getting its share of 475 Megawatt from Coastal Gujarat Power Limited Tata Mundra Plant, which has stopped supplying power to the state, in spite of a power purchase agreement. PSPCL officers say against an agreement to sell power to Punjab at Rs 2.90 per unit, they are demanding Rs 5.50-Rs 6 per unit, asking Punjab to share the increase in cost of imported coal.

As power demand in the state rises by an average of 1000 MW over the corresponding period last year, because of the early onset of summers, PSPCL struggles hard to meet the demand. Over the past fortnight, the daily power demand in Punjab has varied between 7,395 MW to 8,490 MW. As of now, no power cut on any category of consumer is being imposed and we are meeting our daily demand, a senior official in PSPCL said.

To make matters worse, even the rates of power that is available for sale on the power exchange have gone up by 450 per cent. Data available with The Tribune shows that the rate of power on the exchange was Rs 3.86 per unit in March 1, which has increased to Rs 18.67 per unit today. “For the past two days, we have not bought any power on the Exchange. Since there is also no surplus, Punjab has also not sold any power,” said a senior officer.

Exchange rates up 450%

The rates of power that is available for sale on the power exchange have gone up by 450 per cent. Data available with The Tribune shows that the rate of power on the exchange was Rs3.86 per unit in March 1, which has increased to Rs18.67 per unit

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