Captive power producers say facing 'severe coal shortage'

617 times viewed
Source: PTI
Friday, December 15, 2017

 NEW DELHI: Power industry body ICPPA, whose members include players from key sectors such as steel and aluminium, has urged the government to ensure coal availability, saying most captive power producers (CPPs) are facing severe shortage of the fuel which may lead to closure of plants. 

The Indian Captive Power Producers Association (ICPPA) further said that the dry fuel must be supplied by Coal India Ltd to CPPs at the same rate at which it is being given to the Integrated Power Procures (IPPs). 

"There is a shortage of coal for CPPs and the difference in price is also something which we are concerned about," ICPPA General Secretary Rajiv Agarwal told PTI here. 

Most CPP-based industries are facing severe coal shortage and even struggling to maintain critical stock level. Reduced power generation is rendering operations economically unviable with huge risk of plant closure, he added. 

The government has always intervened whenever the industry has faced supply issues. 

"We are hopeful this time too the coal ministry will come forward to help us. We have already requested for an appointment with the coal and power secretary to brief him about the situation," he said. 
Since April FY17, Agarwal said, the coal dispatch to CPPs has stymied. During the period even though the coal was available it was not delivered to the CPPs. It was allotted to IPPs who unlike CPPs produce power to sell and make profits, he said. 

He further said the government's intervention is required on an urgent basis as due to shortage, CPPs are suffering huge financial losses and forced to procure coal from alternate sources in spot market at higher prices. 

 Another issue is that CPPs are not being supplied coal by CIL at rate at which IPPs are getting. "IPPs are being given coal at a lower price as compared to CPPs. There is a difference of at least 20 per cent between the rates at which CPPs buy coal and IPPs buy from the CIL," he said. 

CPPs should be provided coal at par with rest of the power producers, the secretary said. 

The average cost of extraction is Rs 300-400 per tonne. The billing to IPPs is done at Rs 800 a tonne. After some taxes like handling, it rises to Rs 950-1,100 a tonne, he said. 

"To us it is done at 20 per cent higher. To CPPs, the billing is done at Rs 1,600 a tonne. So something which was of Rs 400 is given to us at four times more. On global comparison what we are getting is in the highest bracket, he said. 


Post Your Comment:


Also Read:

Breather for solar gear importers

Chinese imports edge out domestic solar players

How a Bengaluru-based company is working to transform sewage into biodiesel

Karnataka Electricity Regulatory Commission seeks cut in base tariff for solar auction

Adani Group among top 15 global utility solar power developers

BSES launches rooftop solar single-point for apartment complexes

CDC bats for Shivanand Nimbargi for its renewable venture in South Asia

MP aims to beat China, build world’s biggest solar park

Government starts safeguard duty probe on solar cells

Captive power producers say facing 'severe coal shortage'

Home | Recent News | Privacy Policy | Disclaimer | Feedback | Sitemap | Contact Us

© Copyright Power Hub 2012-2014, All rights reserved.