Punjab Govt writes to Centre opposing use of imported coal for power plants

Aman Sood

Patiala, September 8

The Union Power Ministry has locked horns with the Punjab State Power Corporation Limited (PSPCL) on the issue of “mandatory use of imported coal”; which, Punjab says, will financially burden it.

Will increase cost of power generation

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No major relief is likely to be provided to the Railways by the use of imported coal; while the same is likely to lead to an increase in the cost of power generation.

Last week, the Union Ministry of Power had written to all states, directing them to import 4 per cent coal (by weight) for blending, so as to bridge the gap between demand and supply.

In a demi-official letter to the Union Secretary (Power), Chairman-cum-Managing Director, PSPCL, Baldev Singh Sran said the thermal power stations of Punjab (GGSSTP, Ropar, and GHTP, Lehra Mohabbat) are located at an average distance of about 1,325 km from the Mundra port located in western India; while the average distance of mines from where these thermal plants are getting coal is about 1,450 km.

“As such, no major relief is likely to be provided to the Railways by the use of imported coal; while the same shall lead to increase in the cost of power generation,” reads the letter, a copy of which has been accessed by The Tribune.