West Bengal Power Development Corporation Limited is looking to step up coal production from its captive sources aimed at lowering its expenses on fuel and remain profitable at a time when the state government is planning on cut power tariff for next year in WBSEDCL areas.
The utility expects to start producing coal from its Pachawara (North) coal block in Pakur district of Jharkhand by March after having received the necessary clearances in December last year, Durgadas Goswami, chairman and managing director of WBPDCL today said on the sidelines of a seminar.
The state power utility at present sources about 15 million tonnes of coal, a major part of its annual requirement, through fuel supply agreements with Coal India.
It has seen its expenditure on fuel increase by almost 21 per cent in 2012-13 over the year ago period.
WBPDCL had earlier decided to put coal imports on hold. So, to strike a balance between a lower tariff and remaining in the profits at the same time, increased production of coal from captive sources, which could be relatively cheaper and of better quality from that of Coal India, was required, WBPDCL officials said.
The power utility was also looking at adding capacity to Sagardighi this year and a part of its coal requirement could also be met with captive coal, the officials added.
Bengal power minister Manish Gupta who was also present at the seminar said the state government was considering reduction in power tariff during 2014-15 fiscal.
"I cannot say at this moment how much reduction in tariff will take place. A notice in this regard is being prepared and will come up within 10 days," he said on the sidelines of the event.
Gupta also urged the officials of the state production and transmission and distribution utilities to focus more on improving operational efficiency.
