With Uttar Pradesh government clearing the way for importing 4% coal for both state gencos as well as independent power plants in the state for two months, the Centre is all set to restore the state’s domestic coal supply. Talking to FE, an official of the ministry of power said that railway rake allotment, which was reduced on account of UP’s denial to import coal, will henceforth be restored.
“Lesser number of rakes were being allotted to UP. But now that would be restored to 95% as is being done for other states. Uttar Pradesh will now be on the same footing as other states. It will not be at any disadvantage as far as coal supply is considered,” he said.
On being asked whether the restoration would be just for August and September, the two months for which the state has consented to import coal, or would be extended further, the official said that a call on this would be taken only after two months.
According to sources in the state power department, the Centre had reduced the daily quota of domestic coal allotted to UP from 17 rakes to 11 in the past fortnight, which was severely hampering the state’s power situation. “Many plants in the state were having hardly 1-2 days’ coal reserves. In this scenario, a severe power crisis situation was building up,” an official said, adding that the situation could have turned worse, especially during rains.
It may be mentioned that the Union power ministry had in December asked all utilities in the country to import 4% of their coal requirement for blending and later increased the blending percentage to 10%. It had followed up with a warning that if the gencos do not import 10% of coal for blending by June 15 — they would be penalised and their domestic coal supply would be cut.
According to sources, the restoration of domestic coal is extremely crucial for the state as most plants do not have any stock left and are running at reduced capacities. “We need to have 96% domestic coal stock so as to blend the 4% that will be imported,” said an official.