Punjab power utility — Punjab State Power Corporation limited (PSPCl) — is looking to retain Pachwara central coal block for meeting fuel requirements for its thermal power plants. The PSPCl, also known as Powercom, has applied for Pachwara central coal block, which is one of the 53 reserved for State-run power utilities. Pachwara central coal block located in Pakur district of Jharkhand was earlier allotted to erstwhile Punjab State Electricity Board in 2002. The mine is currently being operated by Panem coal mines.
PSPCl, formerly known as Punjab State Electricity Board, had entered into an agreement with Eastern Minerals and Trading Agency (EMTA) to form a joint venture (JV) company Panem Coal Mines for development and operation of coal mine in 2001 while coal purchase agreement (CPA) was signed between PSEB and Panem in 2006. State-owned PSPCl’s three coal-fired power generating units — lehra Mohabbat, Bathinda and Ropar — with combined power generation capacity of 2,640 MW (megawatt) are getting about seven million tonne of coal from Panem coal mines out of total annual requirement of 13.6 MT (million tonnes).
Rest of coal comes from Central Coalfields limited (CCl), a subsidiary of Coal India limited. However, the Supreme Court in September last year cancelled mining licences of over 200 coal blocks. PSPCl official said that as many as 53 coal blocks have been reserved by the Centre for State-owned power utilities or companies for direct allotment. “We are hoping that this allotment process may be over by the first week of March,” he said.
PSPCl has already deposited fine amounting to Rs391 crore as penalty levied by the Supreme Court which had imposed at the rate of Rs295 per tonne of coal used. The total fine as per SC order was worked out at Rs1,505 crore, he said. PSPCl has also decided to change the mine developer-cum-operator (MDO) once it is allotted the Pachwara coal block. “We will be replacing MDO after we are allotted the coal block,” he said.
PSPCl has been facing coal supply issue with Panem Coal mines for more than last one year. In the aggregate revenue requirement submitted with the power regulator — Punjab State Electricity Regulatory Commission (PSERC), power utility had pointed out that the “short supplies” of coal by Panem coal mines had caused “depletion in its coal stock” at its plants that led to decrease in power generation.