The Hindu Business Line : Power crisis likely to continue — Coal, gas shortage results in 2 b units loss

While the coal and gas shortage has already resulted in a loss of over 2 billion units of electricity till April 2005, the situation in Maharashtra and West Bengal appears grim on account of unprecedented peak demands.

The Power Ministry has asked utilities that are facing fuel shortages to import coal and directing power-trading companies, including PTC India Ltd and NTPC Vidyut Vyapar Nigam Ltd (NVVNL) to prioritise supply to worst-hit States.

"The coal shortage has already taken its toll on the power sector, especially affecting players such as NTPC. Now, the shortages in gas supply to stations along the Hazira-Vijapur-Jagdishpur (HVJ) pipeline has come as a second blow. It is only post-monsoon that we can expect more hydel power to come into the grid, especially to meet peaking demand," a Ministry official said.

Efforts at restarting the idle 2,144 MW Dabhol project in Maharashtra is also expected to get a fillip, as generation from the plant seems to be the only solution for bridging the shortfall of 3,000 MW being faced by the State at present. "The project is nearly complete and stakeholders such as the Maharashtra State Electricity Board need to work towards restarting operations at the plant at the earliest," a Government official said.

Meanwhile, industry has expressed concern at the fuel shortage affecting power generation. Phdcci has urged the Government to take measures by making coal and gas available to power plants. According to Mr K.N. Memani, President, Phdcci, "The shortage of coal and gas for power plants shall result in serious power crisis. Already, the country is faced with power shortage of more than 11 per cent. Any further deterioration in power availability would lead to serious repercussions on the economic activity."

NTPC has resorted to import of coal for its existing power plants, which is expected to land in the country over the next couple of weeks. While this would take care of the shortages being faced by the utility's coal-fired stations, the situation at its gas-based stations is also grim following GAIL's move to cut gas supplies to power plants.

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