usually-power-rich-in-october-pspcl-forced-to-buy-costly-electricity,, Oct 6, 2021

Posted On : November 09, 2021

With no respite from the severe coal shortage, thermal plants in the state continue to run at minimal capacity, forcing the Punjab State Power Corporation Limited (PSPCL) to buy costly electricity from the national grid.

Normally holding surplus power in October, the power body would sell the excess to the grid. In the last two years alone, it sold power worth almost ?1,200 crore during the off-peak season, particularly in September and October.

This time around, it has instead been forced to purchase 1,300 MW (megawatts).

“The overall situation is grim. To conserve coal, PSPCL is not running the plants at full capacity. Let alone earn revenue from selling surplus power, it is buying electricity from the national grid on day-to-day basis for smooth supply. On Monday, power was bought at Rs. 6.5 per unit from the grid,” said a PSPCL official, requesting anonymity.

Coal stocks depleting by the day

Hit hardest by the coal shortage, private sector plants, with power capacity of 3,920 MW, are left with coal reserves for less than three days.

Worst-affected is the Goindwal Sahib Plant, run by GVK Industries, where stock for only two days remains. At the Rajpura Thermal Plant and Talwandi Sabo Power Plant, too, reserves remain for little over two days.

In this hour of crisis, PSPCL has found some refuge in the government-run plants. But here too, the Ropar Thermal Plant will run out of coal in six days and the Guru Hargobind Thermal Plant at Lehra Mohabbat in eight days.

Adequate reserves not ensured

According to the Central Electricity Authority’s guidelines, all power plants located at a distance of over 1,000km from a coal mine must maintain a minimum coal stock of 28 days at all times, and all coal-fired plants in Punjab fall in this category.

Yet, PSPCL never ensured that the minimal stock was maintained. Further, Tata shut down its 475 MW Mundra power project to arm twist PSPCL to increase rates in line with increase in the Indonesian coal cost.

PSPCL chairman-cum-managing director A Venu Prasad said he had sent an SOS call to the Union coal ministry to increase the supply. “Continuous efforts are being made to ensure uninterrupted supply to consumers. We hope the situation will improve soon,” he added.