MSEB plans to buy coal mine abroad

First state power utility to explore option.

The Maharashtra State Electricity Board (MSEB) is planning to acquire a coal mine abroad to increase its power generation capacity. This the first time that any state electricity board is exploring such an option.

Mahrashtra's Energy Minister Dilip Walse-Patil said: "We are certainly discussing options to enhance our coal supply. It is true that most of the mining possibilities within India will have a limited life. Most of these coal mines will be able to sustain coal supply for another 20 to 25 years. Therefore, it is essential to look globally for our requirements for good quality coal."

Last week, the Maharashtra Cabinet had cleared a proposal that permitted the MSEB to get into captive coal mining for meeting its fuel requirements.

Walse-Patil said the government was looking at captive mining to ensure future supplies in view of the sharp fluctuations in coal prices in the international market. This would be in in addition to importing good quality coal, he added.

A state government official said Maharashtra's current power shortfall of over 3,000 Mw daily was essentially because of a shortfall in coal supply to fire the thermal power plants. Reduced availability of water and gas for hydro- and gas-based power plants has also resulted in acute power shortfall.

Not enough fuel

• Maharashtra's current power shortfall of over 3,000 Mw daily is mainly because of a shortfall in coal supply to fire the thermal power plants
• Reduced availability of water and gas for hydro- and gas-based power plants has also resulted in an acute power shortfall