Punjab opposes Centre’s directive on blending of imported coal

Tribune News Service

Aman Sood

Patiala, October 26

Despite sending an official communique to the Central Government about Punjab’s reluctance to import coal for thermal plants, the Centre has increased the additional load on thermal plants by increasing the blending of imported coal to six per cent.

PSPCL writes to Power Ministry

In a letter to the Union Secretary, Power, PSPCL Chairman-cum-Managing Director Baldev Singh Sran wrote: “The present coal requirements of PSPCL’s state sector plants is 50 lakh metric tonne per annum and the availability from the PSPCL’s captive coal mine in Pachhwara, as per approved mining plan, is 70 lakh metric tonne per annum.”

The Punjab State Power Corporation Limited (PSPCL), however, remains opposed to the move as it will have to bear an “additional burden of Rs 500 crore per annum despite owning a captive mine”.

The Union Ministry of Power on Wednesday issued a revised directive that all companies operating thermal power plants should import 6 per cent of coal instead of the previous 4 per cent till March 2024 to meet any shortfall in domestic coal supply. The ministry has also directed imported coal-based units to run till June 24.

The PSPCL claims that as the state already has a captive mine and there is no need for it to import coal and burden consumers financially. “Per annum burden of imported coal will be over Rs 500 crore, which is not needed,” said a top PSPCL official.

“The imported coal will lead to reduced coal production from the Pachhwara mine, which will not be in the overall national interest and rather cause an increase in the cost of power generation,” read the letter by PSPCL to the Power Ministry. The state is yet to hear back from the Ministry.

The Ministry of Coal claims that it has no supply issues from its end and has adequate availability of coal for meeting the increasing energy demand of the country.

“This has left many questions about the actual state of coal supply in India,” said VK Gupta, spokesperson, All-India Power Engineers Federation (AIPEF). “Putting an additional load of imported coal on thermal power plants of the state is not appropriate,” he added.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

#PSPCL