Saturday, May 21, 2022

Power demand: All ICB plants should be operational at ‘fair, reasonable tariffs,’ says govt

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  • Keeping in view the rapidly increasing demand for power, the government has recommended that all gencos should endeavor to import coal for blending upto 10 percent
  • In order to avoid long distance coal transport in respect of certain state gencos, tolling facility would be allowed up to 25 percent of linkage coal

New Delhi: Union Minister for Power RK Singh has directed states to ensure that all Imported Coal Based (ICB) plants are operational at “fair and reasonable” tariffs to meet the rise in power demand. At a review meeting held to review coal stock situation at ICB plants, it was decided to resolve all the operational issues in ICB plants and make them fully functional. The meeting comes in the backdrop of a rise in power demand as summer peaks across the country. With the Met Department forecasting above normal temperatures in April, electricity demand is expected to rise at a fast pace.

Govt asks gencos to import 10% coal for blending

Keeping in view the rapidly increasing demand for power, the government has recommended that all gencos should endeavor to import coal for blending upto 10 percent. State-wise and genco-wise targets were fixed and it was urged to ensure delivery of coal for blending purpose before the onset of monsoon as domestic coal supply gets affected during rainy season.

Govt allows tolling facility upto 25% of linkage coal

In order to avoid long-distance coal transport in respect of certain state gencos, tolling facility would be allowed up to 25 percent of linkage coal. Singh said that this would enable states to optimally utilise their linkage coal in the plants nearer to the mines as it would be easier to transmit electricity instead of coal transport to far-off states.

Principal Secretaries and senior officials from states, Independent Power Producers (IPPs) and representatives of ICB plants attended the meeting. Union Power Secretary Alok Kumar, Additional Secretary Vivek Kumar Devangan and CMDs of Power CPSEs were also present at the meeting held on April 12, said the Power Ministry.

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