Punjab not to import coal for power plants, to save Rs100 cr - ECAS Punjab

Punjab not to import coal for power plants, to save Rs100 cr

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Tribune News Service

Chandigarh, June 15

Punjab will not be importing any coal to run its thermal power generation plants to optimum capacity as the power demand in the state peaks during the ongoing paddy season. Instead, the state is getting an enhanced supply of domestically produced coal from Coal India Limited.


  • No imported coal for the state's thermal plants to help save Rs100 crore. Around 18.89 LMT was imported last year
  • Cheaper power is being bought (1956.79 LU on June 14) instead of generating electricity from own sources (506.49 LU)
  • Electricity is bought at Rs4.05 per unit, while the cost of own power generation is Rs6 per unit

"The decision will help the cash-strapped state government save a whopping Rs 100 crore as it will use the cheaper coal from Coal India. The latter has agreed in principle to give additional coal to the government as well as private thermal power plants in the state under the import substitution policy," A Venu Prasad, chairman and managing director of the Punjab State Power Corporation Limited (PSPCL), told The Tribune.

Punjab's reliance on imported coal for running its power plants during the paddy season is huge. Over 15 per cent of the coal used during this time is imported from Indonesia. Last year, 18.89 lakh metric tonnes of coal was imported while 14.74 lakh metric tonnes of coal was imported in 2018-19 to meet the surge in power demand during the paddy season. Power demand in the state yesterday was 2,457 lakh units (LU).

The CMD of the PSPCL said this year, they had also witnessed a plunge in demand from industrial and commercial consumers by an average of 2,000 MW per day. "This is because the industry is not running to its optimum capacity and because many commercial establishments have not started operations. The additional coal allocation from Coal India and the fall in demand from other two categories of consumers will help the state meet its power demand without importing the expensive coal," he said.

Interestingly, the maximum per day demand of power this year has touched a high of 11,151 MW as against the peak of 11,472 MW last year. With paddy sowing this year being advanced by 20 days, the peak power demand has come early, Prasad said, adding that no power cuts were being imposed on any category of consumers..

from The Tribune https://ift.tt/2UKzbTS

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