3 months after Punjab Government won case in Supreme Court, operations yet to start at Jharkhand mine

Ruchika M Khanna

Tribune News Service

Chandigarh, December 27

Three months after the Punjab Government won the case in the Supreme Court for operating the Pachhwara central coal mine, the state is yet to start the mining operations there. This, even as the state continues to get “restricted” supply from Coal India, and most of its thermal plants are unable to maintain the required buffer stocks.

Allocated to state in 2001

Allocated to Punjab in 2001, the coal mine in Jharkhand has reserves for 50 years. The coal blocks were allocated to the state for mining of coal to be used by state-owned thermal power plants. This mine is expected to produce seven million tonnes of coal each year.

If the mine were to become functional, it would reduce the cost of power production by 30-40 paise per unit, which could then be passed on to the consumer as a tariff rebate. Operating own mine would also ensure saving of over Rs 500 crore per annum. Sources said it would take some months before the coal mine could be operated.

The Tribune has found that the state is still facing a shortage of coal at all thermal plants, as it is getting a restricted supply of coal because of chronic shortage in the country. As of today, the two state-run thermal plants — Guru Gobind Singh Super Thermal Power Plant at Ropar and Guru Hargobind Thermal Plant at Lehra Mohabbat — have stocks of just 11.8 to 16.2 days, respectively. The situation is worse for the private thermal plants, where Talwandi Sabo Power Plant has stocks for just 2.1 days, Nabha Power Plant for 13.5 days (because only one unit is functional) and GvK plant has stocks for just 1.4 days.

Interestingly, in a letter written by the Union Ministry of Power, to all state power utilities, including Punjab State Power Corporation Limited (PSPCL), earlier this month, the power generating companies have been advised to “build their coal stocks ”as the supply from Coal India is not commensurate with the requirements of thermal power plants”. The state was advised to build its stock through imported coal, required for blending purposes. 

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