Coal shortage sparks conflict over share in Pachwara mine

  • 25/04/2013

  • Tribune (New Delhi)

With a number of thermal power plants being developed by private companies getting delayed due to non-availability of coal, the Punjab Government's captive coal mine at Pachwara (Jharkhand) is in the centre of confrontation between the warring parties. Private companies are seeking a share in the coal produced from the mine. The under-construction thermal plants are running behind schedule due to a stand off between the state government/PSPCL and the companies on the supply of coal. The government, which is seeking more allocation of coal from the Centre, is not inclined to open the doors of the coal mine to private companies, saying the mine is meant exclusively for state-run thermal plants at Bathinda, Ropar and Lehra Mohabbat. Sterling Ltd of the Vedanta Group, which is developing the 1,920 MW Talwandi Sabo thermal plant, and Larson and Toubro, which is developing 2,100 MW Rajpura thermal plant, are seeking the supply of coal from the Pachwara mine, which became operational in 2006. Larsen & Toubro had first sought relief from the Punjab State Energy Regulatory Commission (PSERC). It has now approached the Appellate Tribunal for Electricity, the national body for settling energy-related disputes. The company said the state government and the PSPCL had failed to honour its commitment of arranging coal for the thermal plant. In December last year, the PSERC had asked the company to make its own arrangements for coal supply. Sterling Ltd has raised the demand informally. The Talwandi Sabo thermal plant, developed by it at Banawali village in Mansa district, has already missed several deadlines due to the coal shortage. Coal from Coal India Ltd and the Pachwara mine is cheaper than the open market or through imports. The PSPCL has so far refused to oblige the companies. It argues the coal reserve will deplete faster if the production is increased. Moreover, Chief Minister Parkash Singh Badal while seeking allocation of more coal for the state had explained in detail that production from Pachwara coal mine was about 9 million tonnes (MT) against the need for 14 MT for the state-run power plants. Even if the Pachwara coal mine is fully exploited, it can generate up to 15 MT, the PSPCL says. A revised plan of production, finalised last year, stated the production of coal should be ramped up to 15 MT gradually in the next seven to eight years. The 1 Talwandi Sabo thermal plant needs over 7 MT of coal. Larson and Turbo will need lot more if it runs its plant at its full capacity of 2,100 MW. Refusing to comment on its demand for a share from the coal mine, a spokesperson of Larson and Toubro said the group was exploring all propositions to complete and run the thermal plant. PSPCL officials reiterated the coal mine was meant for the state-run projects only. It also cited the recent coal scam after which Coal India Ltd had become strict on the diversion of coal supply to a third party. cause of conflict The thermal plants under-construction are running behind schedule due to a stand off between the state government/PSPCL and the companies on the supply of coal The government is not inclined to open the doors of the coal mine in Jharkhand to private companies, saying the mine is meant exclusively for state-run thermal plants at Bathinda, Ropar and Lehra Mohabbat Companies say the state government has failed to honour its commitment of arranging coal for the thermal plants