Coal shortage in power plants continue in Punjab despite low demand, Oct 24, 2021

Posted On : November 10, 2021

 Even as the state has witnessed a huge decline in the power demand, private- as well government-run thermal power plants in Punjab continues to witness the shortage of coal in their stock.
The demand for power in Punjab has declined to around 6,500MW. On Friday, the power demand touched 6,631MW and around 1,400 lakh units were supplied. During this year’s peak season, the state had witnessed demand beyond 15,000MW.
Punjab State Power Corporation Limited (PSPCL) blames the snag in coal supply as a reason behind low stock of coal with the power plants. However, sources in the power sector claimed that one of the private plants in Punjab was not maintaining the stock following financial constraints.
Sources revealed that both Ropar and Lehra have three days coal stock while the private plants have around two days coal stock if run on full load. Both state-run power plants at Ropar and Lehra Mohabbat are shutdown and both the units of GVK private power plant also shut operations from October 18 and October 21, respectively, following coal shortage. The two private plants in the state are operating according to the instructions and requirement of PSPCL.
Talwandi Sabo Power Limited (TSPL) spokesperson said they have sufficient coal stock to meet the power demand and requirement of PSPCL and despite daily consumption, the stock is sufficient, as more coal rakes are reaching the plant.
Meanwhile, an official at GVK, on request of anonymity, said coal was not being purchased, as they were facing financial constraints and they have less than two days’ coal stock. The power plants in Punjab are supposed to maintain 30 days coal stock according to CEA guidelines.
The Union ministry of power has advised all the coal-based thermal generating stations to maintain adequate coal stock according to their obligations. In the case of domestic coal shortage, the generators can blend the imported coal up to 15% with domestic coal, wherever technically feasible, to meet the increased power demand in the country.
V K Gupta spokesperson of All India Power Engineer Federation, said the blending of imported coal up to 15% by private generators will increase the cost of supply. He added, “Moreover, the private generators are not covered under the CAG audit. It may be mentioned that the investigations of the Directorate of Revenue Intelligence (DRI) regarding forged documents of imported coal by IPPs and particularly by Adani, are pending decision in the Supreme Court. Further, there are two aggravating factors. The global prices of coal have increased, which would make import a costly option. Moreover, the coal production in India has stagnated in past three years while the demand is increasing every year.”
PSPCL director, generation, Paramjeet Singh said, “We will maintain the stock in accordance with guidelines once the coal supply situation improves.”

Other News

  1. Stranded asset risk to drag net thermal capacity addition Sat, Dec 8, 2018
  2. BBMB - water leve
  3. Work Boycott by power engineers across the country Jan 9 2019
  4. All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. The body alleged that this is a clear attempt to introduce privatization through the backdoor and deserves to be scrapped. The purpose of the central government is not to review or revise the existing National Electricity Policy but the total replacement of existing policy with a new policy to be recommended by the expert group so as to achieve privatization, the body alleged. As per Electricity Act 2003, National Electricity Policy is to be prepared in consultation with the state governments and Central Electricity Authority (CEA), a statutory body. However, the body said that the CEA is not included in the proposed schedule of discussion. Further, only 5 states have been included in an expert group instead of all the states, it added. K Subramanian, Chief Economic Adviser, has stated that India is the only country that readily implemented a slew of reforms and used this crisis to herald a change in India''s economic thinking, it said. The strategy of government seems to be “never waste a crisis” and use the crisis of pandemic to streamroll so-called reforms by way of privatizing, it alleged. The draft proposal is of serious nature for which the present situation of a pandemic is a serious constraint, it stated. The Ministry of Power has once again found peak pandemic time as an opportunity in crisis to launch the draft amendments to National Electricity Policy, it lamented. Once the draft policy is finalised, the notified policy would have the status of “subordinate legislation”, and for this reason, the matters need to deliberate as in the case of the legislation itself or as in the case of amendment in the Act itself, it opined. Draft national electricity policy is pushing for more private participation in the power sector and launching sell out of public assets as at Chandigarh and Dadra Nagar Haveli, it noted. The preferred route being suggested are failed models like the franchisee system, transferring distribution responsibility to a private party, and separation of carriage (lines) and content (supply) business, it opined. Since the existing Policy is in force since February 2005 there was no emergency to totally replace it, while power engineers and workers as front line workers are already stressed in maintaining power continuity, it added All India Power Engineers Federation on Tuesday condemned the central government''s move to amend the National Electricity Policy "to facilitate privatisation". According to a statement by the AIPEF, the proposed changes require extensive discussions as such time for submission of comments should be six months. When fundamental changes are being introduced by way of privatization of the power sector, there is no basis to rush through more so under extreme distress caused by the COVID-19 pandemic, it said. "All India Power Engineers Federation (AIPEF) condemns the government of India''s move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said. The body alleged that this is a clear attempt to introduce privatization through the backdoor and deserves to be scrapped. The purpose of the central government is not to review or revise the existing National Electricity Policy but the total replacement of existing policy with a new policy to be recommended by the expert group so as to achieve privatization, the body alleged. As per Electricity Act 2003, National Electricity Policy is to be prepared in consultation with the state governments and Central Electricity Authority (CEA), a statutory body. However, the body said that the CEA is not included in the proposed schedule of discussion. Further, only 5 states have been included in an expert group instead of all the states, it added. K Subramanian, Chief Economic Adviser, has stated that India is the only country that readily implemented a slew of reforms and used this crisis to herald a change in India''s economic thinking, it said. The strategy of government seems to be “never waste a crisis” and use the crisis of pandemic to streamroll so-called reforms by way of privatizing, it alleged. The draft proposal is of serious nature for which the present situation of a pandemic is a serious constraint, it stated. The Ministry of Power has once again found peak pandemic time as an opportunity in crisis to launch the draft amendments to National Electricity Policy, it lamented. Once the draft policy is finalised, the notified policy would have the status of “subordinate legislation”, and for this reason, the matters need to deliberate as in the case of the legislation itself or as in the case of amendment in the Act itself, it opined. Draft national electricity policy is pushing for more private participation in the power sector and launching sell out of public assets as at Chandigarh and Dadra Nagar Haveli, it noted. The preferred route being suggested are failed models like the franchisee system, transferring distribution responsibility to a private party, and separation of carriage (lines) and content (supply) business, it opined. Since the existing Policy is in force since February 2005 there was no emergency to totally replace it, while power engineers and workers as front line workers are already stressed in maintaining power continuity, it added
  5. Tata Power seeks 50 paise/unit hike from Punjab government Tue, Dec 11, 2018,