Faced with acute fuel scarcity, private power producers,
including Reliance, Adanis and Tatas, have suggested to Prime Minister, Dr
Manmohan Singh that the coal set side for e-auction be diverted for power
sector at notified prices.
The Association of Power Producers (APP) came up with
detailed suggestions to address multiple woes plaguing the sector, just days
after chiefs of private power companies met the Prime Minister on January 18.
“To meet the current (fuel) deficit situation, e-auction coal
should be diverted for the power sector at notified prices (to avoid tariff
shocks),” APP said in a communication to the Prime Minister's Office (PMO).
Coal India (CIL), which accounts for over 80 per cent of
domestic coal production, sets aside about ten per cent of the fuel annually
for e-auction, which fetches good returns for the company.
Shortage of coal is expected to hurt new capacity addition
plans of power companies to the tune of 15,000 MW in the current fiscal.
As per the communication, the private power producers have
also suggested that domestic coal should be reserved for regulated sectors such
as power and fertiliser.
Leave a Reply