Suffering from almost 100 per cent increase in B grade coal prices, RP-Sanjiv Goenka group power utility CESC has approached the coal ministry and the state-run Coal India Ltd (CIL) for a fresh linkage supplying lower grade coal.
Currently, CIL’s subsidiary Eastern Coalfield Ltd (ECL) is supplying B grade coal for the company. “We have approached the coal ministry and CIL regarding this. A and B grade coal prices have increased more than 99 per cent after the price revision by CIL in February. It is affecting our margins a lot. So either we would like to have a separate linkage or power firms should be insulated from this hike,” Sanjiv Goenka, the vice chairman of CESC, said on Friday on the sidelines of the 33rd annual general meeting of the company here. About 45 per cent of CESC’s total coal requirement is met by captive coal blocks, while the rest is supplied by CIL.
On the other hand, the firm has also approached the power regulator for a tariff hike of 34 paise per unit due to fuel price pressure. The power firm had already raised 46 paisa in April.
Growth plans on track
The firm has shortlisted two private equity (PE) players for its plans to raise Rs 1,000 crore for three projects of its subsidiary Haldia Energy (HEL).
“The process of selecting a PE firms took much long than we expected. Now, we have zeroed in on two players,” Goenka said. The company is looking to offload 20 percent stake in Haldia Energy. The total investment for the three project — Haldia (600 MW), Orissa (1300 MW) and Maharashtra (600 MW) — is expected to be about Rs 13,000 crore.
The zero date for the Rs 3,000-crore Haldia thermal power plant would be September and the firm has already acquired 448 acres of land for that. “Haldia plant is expected to be commissioned with in three years. Coal linkages are in place and CIL would be supplying 70 per cent of the coal needed for the plant,” he said.
Meanwhile, the firm has identified 350 acres of land for the first phase of a 1320 MW power plant at Danro in Jharkhand. “Revenue department has recomended 320 acres of land. The project got various clearance,” he said. While, 2x300 MW thermal power project at Chandrapur in Maharashtra is progressing according to schedule, Goenka has not ruled out the possibility of starting a gas-based power station at Mulajore in North Kolkata, as other project may not be allowed with in the city limits.
However, as part of its plans to increase the share of renewable energy to 15 per cent of the total power produced, the firm anticipates that its 9 MW solar power project at Pratapgarh in Gujarat will be commissioned next year. Total investment for the project would be around Rs 120 crore. It has identified two more sites in Rajastan for renewable power projects.
