Adani Power has shut down a 660 MW unit at its Kawai power plant in Rajasthan due to shortage of coal.
Adani Power has shut down a 660 MW unit at its Kawai power plant in Rajasthan due to shortage of coal. The shutdown underscores the ongoing issue of coal shortage at power plants, mainly due to insufficient railway rakes to ferry the fuel.
The Kawai power plant was one of the ten electricity generation stations to receive assurance on coal supply under the scheme to harness and allocate koyla transparently in India (Shakti scheme), which was specifically designed to salvage power plants with power purchase agreements (PPA) but without fuel supply agreements (FSAs).
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Under Shakti, linkages have been granted to 10 power plants with 11,549 MW capacity. The power ministry, in its presentation to the parliamentary committee on energy, had claimed that since five stressed projects with 8,490 MW capacity would receive coal under Shakti, these plants should be taken out of the list of the 34 stressed assets (38,870 MW). To be sure, the Kawai plant is not among the 34 stressed power projects.
The Kawai plant has not imported any coal in March-April this year, while it had imported 2.8 MT and 1.6 MT of coal in FY17 and FY18 respectively. The power plant was erected on the basis of a memorandum of understanding between Adani Power and Rajasthan, where the state assured support to get coal linkage from the central government.
As reported by FE in May, the Rajasthan Electricity Regulatory Commission allowed Adani Power Rajasthan, which runs the 1,320 MW Kawai power plant, to recover the additional cost on account of having to import coal due to reduced supplies from Coal India (CIL). The company estimated the additional cost due to coal shortage to be `1,221 crore per annum since 2014.