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Centre encroaching on states’ authority to cover up short supply of coal – AIPEF

Centre encroaching on states’ authority to cover up short supply of coal – AIPEF

Bahadurjeet Singh /Rupnagar

The central government is encroaching on the state authority and forcing them to buy imported coal to cover up its own inefficiencies in supplying domestic coal to thermal plants, an All India power Engineers Federation (AIPEF) spokesperson VK Gupta said on Thursday.,

He said that ministry of power  has issued  directions to generating companies  under Section 11 of the Electricity Act  2003 is pushing states to import  coal to increase blending to supplement domestic coal to offset the short supply of Indian coal by Coal India Ltd. (CIL).

It has also asked all imported coal-based power units to run at full capacity and the upward revision of tariff will be issued by a committee..

VK Gupta said that  the jurisdiction of the central government  in applying section 11  of Electricity Act 2003, is limited  to a generating company that is wholly or partly owned by it and the inter-state generating stations. In the case of state. governments  owned generating stations, it is the  jurisdiction of the state government   in the matter of applying Sec 11.

Centre encroaching on states' authority to cover up short supply of coal – AIPEF
VK Gupta

He said that the non receipt of sufficient quantity of coal at thermal plants across the country was  lack of coordination between three ministries viz Coal, Railway and Power.

AIPEF has written to union power minister R K Singh that the government must now take up the responsibility to import coal on the government to government basis and ensure that the imported coal is made available to state generating companies at the prevailing CIL  rates. The additional cost to overcome coal shortage due to the central government’s  policy lapses should not burden the state.

Centre encroaching on states’ authority to cover up short supply of coal – AIPEF. The tariff of central government thermal plants run by NTPC  would increase  by 50-70 paise and it will be passed on to electricity consumers.

The Uttar Pradesh government has decided not to import coal for power generation in the state, despite a Centre’s directive.

Gupta  cautioned that another power crisis may be coming soon, in case coal stocks in India’s thermal power plants are not ramped up before the monsoon.

The coal supply for June has already been reduced by 10 to 12%.by the ministry.
In the case of Punjab and Haryana,the power demand will rise sharply with the irrigation load going up along with the paddy plantation from the middle of  June. The domestic and industrial demand will also increase because of the coming hot and humid weather.“Besides, production in coal mines decreases during the monsoon season,”

May 26,2022

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