Shukla pleads for cheaper coal for thermal plant

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State's Energy Minister Rajendra Shukla met Union Minister of State for Energy Piyush Goyal in New Delhi on Monday and urged him that the supply of costlier grade coal to Sanjay Gandhi thermal power plant, Birsinghpur, which is raising the generation cost, should be restricted. He told the Union minister that the supply of GCV >5800 kcal/kg coal by the South Eastern Coalfields ltd (SECl) to the thermal power plant should be kept restricted to 20 per cent. He also urged him to expedite the process to develop the solar energy park at Rewa.

GCV >5800 kcal/kg coal supply for thermal power plants is not recommended. Despite this, the SECl has increased the supply of this quality of coal. Supply of this grade of coal in year 2008-09 was 12.6 per cent, which has been increased to 61 percent in year 2013-14. This has put additional burden of Rs 966 crore on Madhya Pradesh Power Generation Company in financial year 2013-14. As a result, generation cost has also increased by Rs 1.21. The burden of additional expenditure is passed on to the consumers. This situation can be prevented if supply of coal of this grade is restricted to 20 per cent.

Shukla informed Goyal that before the fuel supply agreement, sampling, loading and unloading of coal used to be done on both ends. Under the agreement, there is provision of sampling of coal at the loading end. SECl/WCl realises fee for grade of coal announced by them from Madhya Pradesh Power Generation Company, while coal grade slippage is detected on checking at unloading end. Since coal price depends on grade, its consumers have to bear additional financial burden. He urged that it should be considered to amend fuel supply agreement to ensure coal sampling at both ends in view of its importance.

Rajendra Shukla informed Goyal that the Madhya Pradesh New and Renewable Energy Department has planned to establish solar energy parks at five places with financial assistance of the World Bank. Recently, officers of the World Bank and Solar Energy Corporation visited Rewa where the first solar energy park in the state is to be established. They inspected the site in Rewa where 2000 MW solar power plant is to be established and gave in-principle consent to its utility.

Shukla urged directives should be given to officers of the Union Renewable Energy Ministry and SECl to expedite the process of developing solar park in Rewa. The work should be sanctioned and formalities for obtaining loan from the World Bank completed at the earliest. He assured maximum cooperation from the state government in this work. 

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