Centre’s new directives on coal to extend energy price by 20% in Punjab
Aman Sood
Patiala, January 24
Already dealing with a coal scarcity regardless of a captive mine turning into operational, Punjab now stares on the elevated touchdown price of coal within the coming months.
The latest directive of the Centre to “mix coal with imported coal by 6 per cent” in view of the possible coal scarcity in summer time and using rail-sea-rail (RSR) mode for transporting coal from Mahanadi and Talchar coalfields in Odisha to Punjab through Mundra in Gujarat will escalate the fee by 20 per cent.
25 days to succeed in plant
A freight practice takes 4 to 5 days (1,900 km) to succeed in the Talwandi Sabo thermal plant. By the rail-sea-rail mode, coal will likely be provided 1,700-1,800 km by practice along with the ocean route of 4,360 km and can take 25 days. It is going to escalate the fee. Ex-Chief Engineer, PSPCL
Final week, the Energy Ministry requested Punjab, Gujarat, Rajasthan and Maharashtra to move 10-15 per cent of coal by means of a mixture of land and sea route.
The transport mechanism was labored out due to logistical constraints of the direct rail motion and an anticipated improve in coal requirement throughout peak demand in April-Could.
Padamjit Singh, chief patron, All-India Energy Engineers’ Federation (AIPEF), in a letter to Energy Minister RK Singh stated the ministry had no logic to place a further burden of transporting coal by means of the RSR mode. Punjab needs to be allowed to move coal by rail route solely, he stated.
“The coal demand will likely be on the next facet this summer time because of the rise in mercury and elevated demand from the business. Punjab has not been in a position to preserve a compulsory coal inventory of 24 days. The inventory at Lehra Mohabbat and Ropar thermal vegetation is lower than three days,” stated VK Gupta, spokesperson, AIPEF.
On December 8, 2022, Chief Minister Bhagwant Mann had shot off a letter to the Centre and sought exemption for lifting coal by means of the RSR mode and to provide 100 per cent coal in “Direct Rail Mode”. The CM additionally requested to provide coal from the Pachhwara Central coal mine to Talwandi Sabo and Rajpura thermal vegetation with none switch restrict of fifty per cent and extra royalty.
“A freight practice takes 4 to 5 days (1,900 km) to succeed in the Talwandi Sabo thermal plant. By the RSR mode, coal will likely be transported 1,700-1,800 km by rail along with the ocean route of 4,360 km and can take 25 days. Consequently, it’ll improve energy prices,” claimed former chief engineer of Punjab State Energy Company Restricted (PSPCL).
“Finally, the upper price must be handed on to customers,” stated a prime PSPCL official.
Addl burden on exchequer
- Following the escalation of enter prices, the state authorities must bear a much bigger subsidy invoice within the coming months, which is able to put a further burden on the exchequer
- “Round 20 per cent rise is anticipated initially. Will probably be handed on to customers beneath numerous heads,” stated an influence sector knowledgeable
- The PSPCL has sought a short-term mortgage twice this monetary 12 months amounting to Rs 1,500 crore
- The state has intimated the PSPCL that it’s going to pay Rs 15,845 crore of subsidy this 12 months. Nevertheless, the subsidy is more likely to cross Rs 18,000 crore this fiscal