Revised coal prices to push power generation cost
Manish Sirhindi
Tribune News Service

Panipat, January 23
The revised prices of coal announced by Coal India from January 1 are most likely to increase the generation cost of power in the state by 40 to 65 paisa per unit.

According to highly placed sources in Haryana Power Generation Corporation (HPGCL) limited, the daily coal requirement of the utility was 44500 million tonnes (MT). The daily coal consumption at the Panipat, Yamunanagar and Khedar thermal power plants was 21000 MT, 7800 MT and 15700 MT, respectively.

The sources said with a 40 to 50 per cent hike in coal prices but transportation charges remaining fixed, the overall increase in the price of coal would be around 20 to 25 per cent.

The officials said a 12 per cent rise in coal prices would hike the generation cost by 40 paise per unit while a 20 per cent increase would lead to a hike of up to 65 paise per unit.

The officials said at present coal costs Rs 1.75 per unit. The power utilities would be left with no other option but to pass the increase in the cost of generation to the consumers.

Since January 1, Coal India has started pricing coal based on its gross calorific value (heat produced by burning). Earlier, the prices were fixed based on moisture and ash content present in coal. This had also increased the number of coal categories from seven to 17, the sources said.

Coal would now be sold in 17 price brands starting from the variety that produces 2,200 kilo calories to the one that produces 7,000 kilo calories. There are 15 other price bands, each at an incremental rise of 300 kilo calories.