Power crisis: Gencos may not switch on idle units soon over fuel cost surge

Imported coal price at nearly $380 per tonne, while power price is capped at Rs 12 per unit, say players

Power generating companies (gencos) that use imported coal to produce electricity, may find it difficult to switch on their idle units immediately in the wake of high fuel costs, several players have told Business Standard.

Last week, the Union power ministry had invoked Section 11 of the Electricity Act mandating all imported coal-based plants to generate power at full capacity. However, some generating companies that use imported coal, argue that it is simply unviable for them to produce power when the price of coal in the international market is high, while the per-unit price of power has been capped at