AIPEF seeks withdrawal of Centre’s decision to ‘force’ power companies to import coal

In the past few months, all states and even private power generation companies have been directed to import 10% coal. Those vacillating were threatened by the Centre of stoppage of supply from the Coal India, AIPEF spokesperson said

: Questioning the Union government’s instructions to “force” the power generation companies to import 10% coal when there is no shortage of the same in the country, the All India Power Engineers Federation (AIPEF) has sought withdrawal of the decision and reimbursement of extra expenditure incurred on imported coal.

AIPEF seeks withdrawal of Centre’s decision to force power companies to import coal

“Parliament on Monday was informed that there is no shortage of coal in the country, then why does the ministry of power issued instructions for the importof 10% requirement of coal to all the generating companies in a time-bound manner,” said AIPEF, which has written to Prime Minister Narendra Modi, seeking withdrawal of the coal import instructions.

AIPEF spokesperson V K Gupta on Wednesday said that now under the new clarification given by the coal and mines ministry, the extra cost of imported coal must be reimbursed by the ministry of power.

It may be mentioned that under the “administrative coercion” by the ministry of power, most of the state generating companies, thermal power stations, as well as central sector thermal stations such as NTPC, were forced to give consent for the import of coal, Gupta said.

The power ministry wrote to all state generating companies that if blending with domestic coal is not started by June 5 then the domestic allocation of the concerned defaulter thermal power plants will be further reduced by 5%, he said, adding that it’s a clear threat to buy the imported coal.

In the past few months, all states and even private generation companies have been directed to import 10 % coal. Those vacillating were threatened by the Centre of stoppage of supply from the Coal India, he said.

Gupta said that in this context now, the extra expenditure incurred by the state thermal and state Gencos for forcible import of coal should be reimbursed to the states who were forced to import coal while there was no shortage of coal in the country.