The Uttar Pradesh authorities has determined to not import coal for energy technology within the state, regardless of a Centre’s directive that each state-sector and personal gencos should import gasoline for 10% mixing.
The state authorities has advised UP Rajya Vidyut Utpadan Nigam, the umbrella physique of state-owned turbines, that “after considering all aspects, it has come to the decision of not allowing either the state gencos or the independent power producers in the state to import coal,” in keeping with a letter to gencos seen by FE.
The Union energy ministry had requested all utilities within the nation to import 10% of their complete requirement for mixing with home coal by October-end, given the constraints within the home coal provide. Setting stiff targets and timelines, the Centre had acknowledged that out of the 38 million tonne (MT) of coal to be imported, 50% needed to be imported by June finish.
The Centre adopted up the directive with a warning that if the gencos don’t import 10% of coal for mixing by June 15 — they’d be penalised and their home coal provide can be reduce by 5%. Not solely that, however the Centre additionally mentioned that it could then improve the coal import goal to fifteen% for the gencos that don’t comply with its directive to fulfill the ten% of their gasoline necessities by way of imports.
Union energy minister, RK Singh individually wrote to chief ministers of some states for delaying the method of coal imports, together with Uttar Pradesh. “If the present state of affairs continues, it may lead to a shortage of coal in states during the monsoon, thereby adversely affecting the power supply situation in these states,” he wrote.
According to official sources, the UP authorities’s choice comes within the wake of the state energy regulator asking why they issued tenders to import coal with out looking for its permission. It additionally raised considerations in regards to the import plan, given the tariff implications.
Following this, the Uttar Pradesh Rajya Vidyut Utpadan Nigam requested for the state authorities’s clearance to import coal. The matter has been pending with the state authorities for the final month.
“Almost 89% of the consumer base in Uttar Pradesh is domestic. The pass-through would have been a challenge for Uttar Pradesh,” mentioned an official on situation of anonymity, including that the financially harassed discoms within the state are in no situation to soak up such an enormous burden.
Source: www.financialexpress.com”