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In a recent submission to the Central Electricity Authority, at least six public sector power generation utilities and two private power producers reported a 40-110 per cent rise in estimated fuel costs, following the recent price revision by Coal India Ltd (CIL).
During the meting, held on January 11, the power sector estimated the total revenue gains to CIL to be in the tune of Rs 28,000 crore — a claim Coal India refused to accept.
Private producers such as Torrent, in Gujarat, and Lanco (Amarkantak), in Chhatishgarh reported 117 per cent and 54 per cent cost push respectively in erstwhile E and F grade coal sourced from the Raipur-headquartered South Eastern Coalfields (SECL). Torrent reported a Rs. 1.43 a unit rise in generation cost at its Sabarmati unit to Rs. 4.42 a unit. Among PSUs, NTPC reported nearly 39 per cent rise in overall cost of domestic coal. The impact is as high as 74 per cent to NTPC's Vindhyachal super thermal power station for sourcing coal from Northern Coalfields (NCL). The total cost impact on the company is estimated to be Rs 7,700 crore.
Cost impact
Kolkata-headquartered statutory organisation Damodar Valley Coporation (DVC) — which has over 3300 MW pithead capacity in West Bengal and Jharkhand, reports 81 per cent price rise for sourcing E-grade coal from Dhanbad-headquartered Bharat Coking Coal Ltd. The corporation, however, did not elaborate the total impact.
In addition to BCCL, DVC sources coal from Asansol-headquartered Eastern Coalfields and a number of captive sources in Eastern India.
State government controlled utilities of Gujarat, Punjab and Rajasthan — located far away from the coal mining belt — report 54 per cent, 113 per cent and 81 per cent rise in billing, respectively, for the same grades of coal (E and F) supplied by SECL and Ranchi-based Central Coalfields (CCL).
Maharashtra State Power Generation Company Ltd (Mahagenco) said the revised price structure should cost the utility an additional Rs 1,466 crore a year on domestic coal supplies.
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