State Gencos approach REC for loans amounting to ₹3,700 crore to procure coal

BL New Delhi Bureau | | Updated on: Jul 26, 2022

Delays from Discoms are leading to exhaustion of working capital which in turn affects Genco’s ability to purchase coal

State government-run power generating companies (Gencos) from Maharashtra, Haryana, Punjab, Rajasthan and Karnataka have approached the Rural Electrification Corporation (REC) to avail working capital loans amounting to ₹3,700 crore for procuring coal, the Parliament was informed on Tuesday.

As per the data provided by Power Minister RK Singh in a written reply to a query in Rajya Sabha, the Maharashtra State Power Generation Company (MSPGCL) approached the REC for a working capital loan of ₹1,800 crore for procuring coal.

Similarly, the Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), Haryana Power Generation Corporation (HPGCL) and Karnataka Power Corporation (KPCL) approached the centre’s power sector financing arm for a working capital loan of ₹500 crore each. The Punjab State Power Corporation (PSPCL) has approached for a loan of ₹400 crore.

Delays from Discoms

“The State sector generating companies are generally facing delays in realisation of receivables from Distribution Companies (Discoms) which impair their ability to service debt in a timely manner. This leads to exhaustion of working capital which in turn affects Genco’s ability to purchase coal,” Singh told the Upper House.

Coal supply

The Minister said that coal stock available at Thermal Power Plants (TPPs) is monitored on a daily basis by the Central Electricity Agency (CEA). As on March 2022, the coal stock was 25.6 million tonnes (mt) and has increased to 28.4 mt as on July 17, which is about 50 per cent of the normative coal stock required to be maintained by the TPPs.

The coal stock available as on July 17, 2022, is sufficient to run these power plants for an average of 10 days at 85 per cent Plant Load Factor (PLF), Singh assured the house.

Rising demand

“The PLF of coal/lignite based power plants of 25 MW and above during the year 2021-22 was 58.87 per cent. In 2022-23, the demand for electricity has increased and power plants are generating power as per schedule given to them. The PLF for coal/ lignite based power plants in FY23 upto June 2022 is around 69.5 per cent,” he added.

On measures to stock up on the key commodity, Singh said the Ministry of Power on April 28 had advised power plants to import coal for blending purposes during 2022-23. Besides, Coal India has allocated about 16 mt coal on Road cum Rail (RCR) mode to TPPs, and the Railways Ministry has issued orders to give preference to the Power Sector for loading of coal from Good Shed Siding (GSS) and Private Washery.

Published on July 26, 2022
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