Private power companies seek more coal to soften prices

Private power producers are complaining they pay more for coal than other sectors in some auctions, and have sought higher supplies to soften prices.

The Association of Power Producers says non-power consumers paid Rs 1,649 per tonne for G-11grade coal against the notified price of Rs 1,145 per tonne, while power producers paid Rs 80 more for the same grade although the notified price was Rs 955 per tonne.

“Thus retail power sector customers are paying more for the same grade of coal than the unregulated sector customers,” said Ashok Khurana, director general at the association.

Coal India will offer 42 million tonnes under special forward e-auctions in 2018-19, same as last year but 34% lower than 2016-17. Lesser coal is offered mainly because of lower supply by South Eastern Coalfields and Mahanadi Coalfields, which contribute more than 50% of Coal India’s output.

Coal offered by South Eastern Coalfields fell from 26.62 million tonnes in 2016-17 to 8.6 million tonnes in 2017-18. For Mahanadi Coalfields, it fell from 9.76 million tonnes in 2016-17 to 2 million tonnes. The association wants Coal India to offer more coal so that tariffs are not increased.

Source: THE ECONOMIC TIMES