UP bets on new blocks to bridge gap in fuel needs of power houses

By: | Published: January 15, 2015 1:20 AM

The UP government is set to apply for two additional coal blocks to meet the shortage...

The UP government is set to apply for two additional coal blocks to meet the shortage of almost 20% coal in most of its operating power houses. At present, most power plants in UP have coal linkage of only 65%, while the rest is being met through imports.

To tide over this problem, the state government plans to apply for additional coal blocks. If allocated, the blocks would also give a boost to upcoming projects. Speaking to FE, a senior UPPCL official said due to shortage of coal, most plants have to fall back on costly imports.

“Three of the public sector projects — Anpara C, Parichcha and Harduaganj — have coal linkage of only 65%. The gap of 20% is being managed through imports. Apart from these, we have four other projects in the pipeline, which still do not have any coal linkage. The 660-MW Panki Extention project, 660-MW Harduaganj extension project, 1,320-MW Obra C and 1,320-MW Jawaharpur projects are expected to be commissioned in the next 3-4 years. However, we have still not been able to tie up coal linkages for them. We are preparing to apply for two more coal blocks so that our current as well as future needs can be met,” he said.

Even private sector projects, such as Reliance’s Rosa power plant, Lanco’s Anpara C project and Bajaj Hindusthan’s power plants, are faced with coal shortage. . “We have asked private players, too, to apply for coal blocks so as to secure their fuel requirements,” he said, adding that for a land-locked state like Uttar Pradesh, additional coal blocks was the only way of meeting the shortfall. Union coal and power minister Piyush Goyal had promised to allocate a coal block with a capacity of 400 mt to UP by February in lieu of the Chhendipada coal block located in Odisha, which was cancelled by the Supreme Court.


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