Constrained coal availability was the common concern raised by a majority of states during a meeting with the power ministry today. The issues included lack of allocation of adequate reserves and linkages from Coal India for state power utilities.
Gujarat criticised the Centre for “discrepancy” in coal allocation. “There is serious concern about the quality of coal allocated to the state. The generation company faces the problem of 3-5 grade slippage in coal supplies. Also we have been asking for additional blocks for many years. But nothing has happened,” Gujarat energy minister Saurabh Patel said at the meeting chaired by Power Minister Jyotiraditya Scindia.
He also said his state was losing revenue owing to the high freight cost associated with transporting coal from other states in the absence of linkages near to Gujarat. “In case coal is supplied from Western Coalfields (nearby mines), it would reduce the burden of on the consumers of the state by around Rs 1,000 crore per annum,” he said.
Madhya Pradesh sought immediate allocation of blocks for its projects. State energy minister Rajendra Shukla said the 1,320-Mw Singaji power plant in Khandwa district has achieved financial closure but further developments were held up owing to lack of coal linkage or allocation of coal blocks.
Other issues raised by states’ power ministers included lack of funds and infrastructure constraints for implementing the two ambitious distribution sector schemes — Accelerated Power Distribution and reforms Programme and Rajiv Gandhi Grameen Vidyutikaran Yojana.
Scindia said certain discoms are resorting to load shedding even while power is available, which leaves a lot of capacity stranded. “It has been noted that in 2012-13, tariff revision has taken place in 18 states. While tariff has to reflect the true cost of service, the need to minimise losses is necessary to cut tariff burden on the consumer. States need to enforce financial discipline in the operations of discoms.”
The states promised to ensure their accounts upto 2011-12 were audited and finalised by March 2013. Also, they resolved to have auditing of a financial year by September of the following financial year, according to the Companies Act.
