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Talwandi Sabo power plant hits back, blames PSPCL for coal shortage
TSPL blames PSPCL for coal shortage after PSPCL issued default notices for insufficient coal stock. TSPL claims PSPCL failed to ensure coal supply per their agreement.
Hitting back at the Punjab State Power Corporation Limited (PSPCL) that had served two default notices on the Talwandi Sabo Power Limited (TSPL) for failure to maintain the required coal stock, the latter has blamed the former for the coal shortage. The PSPCL had issued two default notices on August 12 and 16 to the TSPL, the biggest thermal power plant in Punjab.
The TSPL is operating a 1,980 MW thermal plant in Punjab under a power purchase agreement (PPA) signed in 2008 with the PSPCL.
Replying to the default notice, the TSPL said the allegations against it are devoid of any merit and stand repudiated in its entirety. “They have set up project in Case-2 scenario of bidding in which the responsibility to ensure the coal supply up to the project site lies with the procurer—PSPCL,” it stated.
It said that as per the bidding document, the PSPCL is obliged to ensure that the TSPL receives requisite quantity of coal at its project site from Coal India or its subsidiaries to generate and supply power at full capacity to the PSPCL. “The PSPCL is required to compensate for any shortfall in assured quality and quantity of fuel for the entire duration of PPA. The PSPCL is responsible for bearing the actual landed cost of fuel up to the TSPL project site and paying energy charges for the power supplied by TSPL,” it mentioned.
The TSPL even cited a judgement of the power regulator, which says that the “PSPCL has to ensure the proper coal linkage”. “Due to failure of PSPCL, the TSPL has inherited the coal shortfall in the linkage provided by the PSPCL,” it stated.
It also claimed that the PSPCL didn’t even allow it to blend the “poor-quality” coal with the imported high-quality coal for better power generation. The TSPL said it wrote several times to the PSPCL about coal shortage and asked it to withdraw the default notice.
Due to less coal supplies, the TSPL had to shut its 660 MW unit on August 13, the PSPCL notice issued on August 16 read. The PSPCL notice mentioned that as per the Central Electricity Authority guidelines, the TSPL failed to maintain a minimum coal stock of 20 to 26 days of operation.
The PSPCL has asked the TSPL to take corrective measures, else it will revoke clauses of the power purchase agreement and approach the power regulator against it.
A PSPCL official said the private power plant is passing the buck over its failure. “The other private plants are having same terms and conditions of the PPA and ensuring proper coal storage. “We have given them 90 days to take corrective measures. After that we will move to the power regulator against the TSPL,” said the official seeking anonymity.
