Construction Industry News
State-run power generation companies in West Bengal, Maharashtra, Jharkhand, Tamil Nadu, Rajashthan and Madhya Pradesh owe Rs 6,477.5 crore to Coal India Limited, amid the country struggling with coal shortages.
The country is currently facing a power crisis due to coal shortages.
According to media sources, Maharashtra State Power Generation Company Coal India (CIL) owes the most money which is Rs 2,608.07 crore. Meanwhile, West Bengal Power Development Corporation Limited (WBPDCL) owes the PSU Rs 1,066.40 crore.
Tenughat Vidyut Nigam Ltd, a Jharkhand state-owned company owes CIL Rs 1,018.22 crore in coal rights, followed by Tamil Nadu Generation and Distribution Corporation Ltd Rs 823.92 crore, Madhya Pradesh Power Generating Company Rs 531.42 crore and Rajasthan Rajya Vidyut Utpadan Nigam Ltd (Rs 429.47 crore).
According to the media sources, although the duties owed to the state power generation companies in Maharashtra, Rajasthan and West Bengal are relatively high, CIL never checked the supply to these gencos and ensured the proper delivery by the subgroup plan and the availability of the rake.
Singareni Collieries Company Ltd (SCCL) is a coal supplier to several thermal power plants including TSGENCO, APGENCO, NTPC, KPCL and MAHAGECO as well as steel, pharmaceutical and cement companies.
SCCL supplies coal under the fuel supply agreement (FSA)/memorandum of understanding (MoU) reached with state and central energy companies.
SCCL owes Rs 764.70 crore to Andhra Pradesh Power Generation Corporation (APGENCO), Rs 514.14 crore to Karnataka Power Corporation Ltd (KPCL), Rs 59.19 crore to NTPC Tamil Nadu Energy Company Ltd (NTECL) and Rs 32 .79 crore to Tamil Nadu Generation and Distribution Corporation Ltd.
Coal minister AK Jain told the media that the current energy crisis is mainly due to a massive drop in energy production from various fuel sources, not a lack of local coal.
Jain said that the low coal supply at power plants is due to several variables, including increased power consumption after Covid-19, the early arrival of summer, a spike in the price of gas and imported coal and a sharp decline in energy production from coastal thermal power plants.
He said that due to the significant price increase of imported coal, coastal thermal power plants are currently producing about half of their capacity. As a result, there is an imbalance between supply and demand.
Since Coal India is a government agency, it is believed that the PSU will provide more coal to close the supply-demand gap. CIL delivered nearly 18% more coal to the electricity sector last year, with a fuel supply of 100 million tons.
