More Heat On Bihar Due To Coal Price Revision

More Heat On Bihar Due To Coal Price Revision

Bihar may face the more heat of recent coal price revision as this will lead to rise power tariff 25-30 paise per unit in Bihar. Whereas, across the country it will be rises at least 5-10 paise per unit. It is all due to the Bihar’s over-dependency on supplies from the two NTPC plants at Farakka (West Bengal) and Kahalgaon (Bihar), which meet nearly 70 per cent of the State’s total power requirement. Coal India plans to raise the cost of coal feeding these two power stations by as much as 55-65 per cent.

NTPC sources peg the corresponding rise in generation cost at 35-40 paise per unit.

W.E.F. May 28, Coal India reduced prices of two superior varieties (G-3 and G-4) and raised prices of all inferior grades (below G-5) by 10 per cent. The Rajmahal opencast mine, under Eastern Coalfields (ECL), was, however, offered an additional ‘support price’ of Rs 300 a tons to keep the miner in the red.

As Bihar lacks any power infrastructure of its own, it’s daily power demand of 950 MW is drawn from the plants at Farakka, Kahalgaon and Talcher at an estimated average tariff of Rs 3.40 a unit, the State expects the average tariff payable to NTPC to move up at Rs 3.65 – 3.70 a unit.

But Bihar’s worries don’t end here. For the last six months, NTPC has been paying a mere Rs 360 a tonne for Rajmahal coal, that was priced at Rs 780 a tonne before price revision.

With Coal India and NTPC now trying to clear past dues, Bihar is worried it will be asked to pay arrears over and above the higher tariff for the current generation.

“We are not clear if we will be asked to pay arrears (by NTPC). But rest assured, we are hardest hit by coal price revision,” a Bihar Government official said.

-Sourced