Lucknow: The Yogi government in Uttar Pradesh has declined the proposal to purchase imported coal for its thermal powerhouses. The private generation plants in UP such as Roza of Reliance, Lanco and Bajaj too would not purchase imported coal.
The purchase of imported coal would have incurred a burden of Rs 11000 crore on the state coffers resulting in increase of power tariff in UP. The power consumer’s council in state had filed a writ in the UP State Electricity Regulator Commission (UPSERC) against the order of central government to purchase imported coal. The consumer’s body had asked commission to stall the tendering process for purchase of imported coal.
It may be mentioned that after the directives of union government to purchase imported coal for the thermal power plants, UP government had floated tenders last month for it. However, the tender was cancelled later on after questions were raised over the cost and possibility of increase in power tariff for the public. Similarly, the private power plant owners too had floated tenders for purchase of imported coal, which would now be cancelled after the decision of state government.
According to the president of consumer’s body, because of his writ, the UPSERC had issued notices to UP State Power Generation Corporation (UPSPGC) and private power plant owners such as Reliance, & Bajaj on the purchase of imported coal. The UPSERC had stated that power tariff would go up certainly, if the imported coal were purchased for the running of thermal plants. The Chairman of UPSPGC), M. Devraj had informed state government that purchase of imported coal would cost an additional Rs 11000 crore and an increase of 85 paisa to Rs one per unit is expected in the power tariff.
After this, the Yogi government has now issued an order that neither the generation corporation nor any of the private power plant in the state would purchase imported coal.
According to the officials of the energy department, the decision would not make much impact on the electricity generation in the state as the railway has provided additional racks for the transportation of coal in UP. Besides the demand for the electricity in UP too has gone down due to improvement in the weather conditions.
