Miss out on an opportunity to generate revenues by selling electricity to national grid where power prices are soaring

Thermal power plants in Punjab are staring at a severe shortage of coal as most of them are left with fuel reserves that will last only for a few days or for more than a week.

With this, the state has also missed out on an opportunity to generate revenues by selling electricity to the national grid where power prices are rising by the day. The stock dwindled due to heavy floods in the eastern states that supply coal to the thermal plants in Punjab, say officials.

As per details, the situation at the 540 megawatt (MW) Goindwal Sahib plant run by GVK Industries is most alarming as the fuel reserve there is for only 3 days.

The government-run 920 MW Guru Hargobind thermal plant at Lehra Mohabbat, in Bathinda and the 840 MW plant in Ropar have stock left for only 4 and 8 days.

Also, the situation at Vedanta’s 1,980 MW plant at Talwandi Sabo and L&T-run 1,400 MW power plant at Nabha is no better as the two are left with coal reserve for 9 and 11 days, respectively.

As per the power purchase agreement (PPA), the power generation companies — both government and private — have to maintain a stock for at least 28 days. But the minimum prescribed amount of stock is never maintained due to laxity of the Punjab State Power Corporation Limited (PSPCL).

A corporation official said, “Due to shortage of coal, we have already shut the PSPCL-run power plant to conserve coal. We have asked the private companies to increase their coal stock, according to the PPA.”

“Earlier, we used to sell power to the grid in September and October when electricity prices remain high. We are missing out on the chance to make profits as both the government and private plants have inadequate coal reserves. At times, the power prices soar past ?10 per unit and it is a good opportunity for us to generate revenues.

It is a failure on part of the corporation management to anticipate the situation and stock coal as per the set guidelines. The PSPCL made nearly ?300 crore profit by selling power in the past years,” the official added.

PSPCL chairman-managing director (CMD) A Venu Prasad admitted that the situation at the GVK-run plant was alarming. “But we are managing by exploring all possible means. The situation is likely to improve by the next week as we are hopeful of arrival of more supplies,” he said.