Coal Shortage
Firms delay supply pact with thermal plants
Umesh Dewan/TNS

Patiala, June 13
With the prevailing coal crisis in the country, signing of fuel supply agreement (FSA) between subsidiaries of Coal India Limited (CIL) and developers of the upcoming thermal power plants in Punjab is getting delayed.

Officials of the Punjab State Power Corporation Limited (PSPCL) said the CIL wanted some amendments pertaining to the quantum of domestic coal supply and tenure for assured fuel linkage before signing the pact.

Sources said instead of a 25-year tenure for assured fuel linkage, the CIL wanted a shorter tenure. The quantum of domestic coal supply was another major issue. "Earlier, CIL was to provide about 80 per cent of the domestic coal, but now the supplier wants the figure to be revised to 50 per cent," the sources said. There are three upcoming thermal plants in the state. These are Rajpura Thermal Plant (1,400 MW), Gobindpura Thermal Plant (1,320 MW) and Talwandi Sabo Thermal Plant (1,980 MW).

"If the developer is supplied imported coal, its cost will be higher which is bound to increase the cost of power generation. Subsequently, power tariff will go up. The issue of reducing the timeframe for assured fuel linkage is a matter of concern for the developers," said senior PSPCL officers.

While Rajpura plant has assured fuel linkage of 5.50 million tonnes annually by South Eastern Coal Field Limited and Talwandi Sabo plant has it for 7.72 MT annually by Mahanadi Coal fields, Gobindpura plant is yet to get the same.

GS Chhabra, Director (Generation), PSPCL, confirmed that the FSA were pending on account of certain issues, including the supply of imported coal. He said there were reports that discussions were on between the developers and CIL.