Punjab will not import any coal to run its thermal power plants at optimum capacity as the demand for power in the state peaks during the current paddy season. Instead, the state is receiving an enhanced supply of domestically produced coal from Coal India Limited.
HOW PSPCL IS SAVING MONEY
- No imported coal for state thermal plants to help save Rs100 crore. Approximately 18.89 LMT was imported last year
- Cheaper power is being purchased (1956.79 LU on 14 June) instead of generating electricity from own sources (506.49 LU)
- Electricity is purchased at Rs4.05 per unit, while the cost of own power generation is Rs6 per unit.
“The decision will help the cash-strapped state government save a whopping Rs 100 crore as it will use the cheaper coal from Coal India. The latter has agreed in principle to give additional coal to the government as well as private thermal power plants in the state under the import substitution policy,” A Venu Prasad, chairman and managing director of the Punjab State Power Corporation Limited (PSPCL), told The Tribune.
Punjab’s dependence on imported coal to run its power plants during the paddy season is enormous. Over 15% of the coal used during this time is imported from Indonesia. Last year, 18.89 lakh metric tons of coal were imported, while 14.74 lakh metric tons of coal were imported in 2018-19 to meet the rise in power demand during the paddy season. Yesterday, the state’s demand for electricity was 2,457 Lakh units (LUs).
The PSPCL CMD said this year that they were also experiencing a decrease in demand from industrial and commercial customers by an average of 2,000 MW per day. “This is because the industry is not running to its optimum capacity and because many commercial establishments have not started operations. The additional coal allocation from Coal India and the fall in demand from other two categories of consumers will help the state meet its power demand without importing the expensive coal,” he said.
Interestingly, this year’s average demand for electricity per day was 11,151 MW, compared to last year’s high of 11,472 MW. With paddy sowing being advanced by 20 days this year, peak power demand has come early, Prasad said, adding that no power cuts have been placed on any group of consumers.
