As many as four states including West Bengal and Gujarat may not buy costly power from the generation companies based on pooled prices of domestic and imported coal.
State-owned Coal India has said it would sign pacts with power companies by assuring them a minimum supply of 80% fuel of the total contract. It would supply 65% of the contracted quantity through domestic production and would meet the 15% shortfall through imports.
“If all the state electricity boards (SEBs) agree to pay higher price for electricity due to increase in fuel cost then there is no problem. But West Bengal, Chhattisgarh, Haryana and Gujarat are not agreeing,” a Power Ministry official said.
The SEBs in these states have expressed reservations in paying higher price for the electricity, he said without divulging further details.
“We are in talks with them (these 4 states)…we are hopeful of a solution soon,” he added.
Earlier this month, Coal India board reached a consensus on supplying a minimum of 80 per cent of the contracted quantity of the fuel to power firms, meeting 15 per cent through imports. Coal India is expected to import around 20 million tonne coal this year.
This decision followed a direction from the Prime Minister's Office to the company to sign the pacts with power firms for supply of 65-80 per cent of the contracted quantity, amid delays in signing of the agreements.
The Planning Commission and Power Ministry had suggested pooling of the prices of imported and domestic coal to neutralise the impact of higher prices of imported coal.
Source:The PTI
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