Imported coal for thermal plants to hit consumers hard

power
Yogindra Mohan
Patiala

Blending of imported coal with domestic coal for upcoming thermal project in Punjab is going to bleed Punjab consumers white due to fuel constraints. In Punjab, six thermal units with total capacity of 3,220 MW are likely to be commissioned next year. All the three units of 660 MW each of Talwandi Sabo Thermal Plant, two units of 270 MW at Goindwal Sahib and one 700 MW unit at Rajpura Thermal are scheduled to be synchronized in 2013-14.

The commissioning of these units may be good news for Punjab consumers but there is also a bad news for them. The upcoming thermal plants will have to use imported coal in view of fuel constraints as Coal India Limited (CIL)will not be supplying full coal requirements to these plants. The blending of imported coal with domestic coal will dent the financial viability of the Punjab State Power Corporation Limited (PSPCL) and increase the power tariff for consumers.

Power sector experts say that for Talwandi Sabo, E or F grade coal has been sanctioned from Basundra Coal Fields. The private company is yet to enter fuel supply agreement with CIL. Rajpura coal linkage from Korba Raigarh fields was given for original capacity. Additional coal linkage has been sought. Goindwal Sahib captive coal mines in Takisud north block is there and work for providing railway siding.

In case of Talwandi Sabo Thermal the fuel charges for indigenous coal works out to be Rs 1.81 per unit, for Goindwal Sahib Thermal it is Rs 1.88 per unit and for Rajpura Thermal it is Rs 1.77 per unit.

Sources said all these plants will have to use imported coal to face the coal shortages so the fuel charges are bound to increase. As per estimates of the PSPCL, the blending of 35 per cent imported coal with indigenous coal will increase the fuel cost for Talwandi Sabo to Rs 2.22 per unit, Rs 2.32 per unit for Goindwal Sahib Thermal and Rs 2.14 per unit for Rajpura Thermal. Thus, the increase in fuel cost due to blending of imported coal varies between 37 paise to 44 paise per unit.

The additional annual financial implication for blending of coal will be Rs 530 crore for Talwandi Sabo, Rs 340 crore for Rajpura Thermal and Rs 155 crore for Goindwal Sahib Thermal project. These figures are based on assumption of 80 per cent plant load factor and 7 per cent auxiliary consumption.

The total annual financial implications for the PSPCL will be Rs 1,025 crore which shall be passed on the consumers. This will increase the power tariff for the consumers which is being fixed by the Punjab State Electricity Regulatory Commission after taking in account all the input costs.

The power sector experts added that the addition of generation capacity in private sector will have another major problem for the PSPCL during the winter season.