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Coal crisis: Private plant forces Punjab power utility to pay 60% more than PPA price
Power engineers oppose corporation’s move to buy power at inflated rates from Gujarat-based plant that stopped supply to Punjab since last year
The Tata Mundra-run private thermal power project, which since last year stopped supplying electricity to the Punjab State Power Corporation Limited (PSPCL) citing non-viability, has now asked the utility to pay more if it wants to draw power in view of high demand amid the ongoing coal crisis.
The plant, located at Mundra in Gujarat, has asked the corporation to shell out money which is 60% more than the price agreed in the power purchase agreement (PPA).
The power supply arrangement will be for a week, it is learnt.
The PSPCL has a share of 475 megawatt (MW) in the project’s total production capacity of 4,000 MW. According to the agreement, which was entered in 2007 and is valid for 25 years, the Mundra project will sell power to the state at around ₹3 per unit. But last month, the project stopped power supply to the PSPCL citing losses and its inability to supply the required volume of electricity.
But later, the project management communicated to the power utility that it was ready to sell power if it agreed to pay ₹5 per unit. “Since the PSPCL is already purchasing power from the grid at ₹13 per unit, it decided to go ahead with ₹5 per unit from the Mundra project even as it is much higher than the rate agreed in the PPA,” said a senior corporation official.
The decision, he added, was taken in the interest of consumers as prices of power available with the grid have touched rates as high as ₹20 per unit during the peak hours due to the countrywide coal crisis.
PSPCL chairman-cum-managing director (CMD) A Venu Prasad said they will take decision in the interests of consumers. “We are trying our best to meet the demand, but the coal supply from the mines is really slow,” he added.
Some senior power engineers have opposed the corporation’s decision.
“Why two set of rules for private and government sector? If private projects can ask for higher rates than PPA on the plea that exchange rates are high, then why can’t the PSPCL refuse to pay as per the agreement when the exchange rates are lower? asked an engineer.
Coal stock situation remains critical
The coal stock situation in all thermal power plants in Punjab remains critical.
The private based have coal reserves for about 2 days while the state-owned plants are left with less than 3 days of stock.
On Monday, 13 coal rakes were received against the total requirement of 22 rakes. The PSPCL met maximum demand of 8,809 MW a day earlier.
On Tuesday, nearly 1,600 MW electricity was procured at Rs.14.56 per unit from the national exchange. Power availability has improved as an additional unit of the Ropar plant and a unit of the GVK have started generating power.
