As ironical as it may sound, on the one hand power capacity addition has taken a hit due to shortage of coal, on the other, some state generation utilities are refusing to buy more fuel as there are no takers for the expensive electricity produced from these stations.
"Utilities are reluctant to buy coal due to low power demand," a Power Ministry official told to news agency.
"Some state power distribution utilities in states including West Bengal, Haryana and Gujarat have shown their reluctance in accepting more coal in view of adequate coal stock at their power stations," he said.
Some power distribution companies have expressed apprehension in buying top quality coal due to higher cost.
"Owing to high cost of higher grade coal from SECl (South Eastern Coalfields ltd) Korea-Rewa coal mines, Rail Vikas Nigam ltd was facing difficulty in getting generation schedule for their stations.