Cost of Coal-based power projects has quadrupled
in the past six months, compelling power generating companies to stop burning
costlier imported coal.
As a result, the imported coal the
power-generating companies contracted this fiscal is piling up at ports,
ironically at a time when the country is facing an acute shortage of the fuel.
Retail tariffs may increase many-fold if distribution companies
are allowed to pass on the price hike to consumers. “About 8,00,000 tonnes
of our imported coal is lying at various ports, while another 1,00,000 tonnes
is at project sites,” a senior NTPC official said. The state-run
firm accounts for almost 70% of coal-based power produced in the country.
Power generators say that there are no buyers for expensive
power generated by burning imported coal, and shutting down projects was a
better option. Most new private generating companies have upgraded plants that
can use imported coal.
“We are refraining from using imported coal even if we
have access to it. There is no interest among buyers for such expensive
power,” an official of a private power company said on condition of
anonymity.
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