Imported coal to increase power tariff

Imported coal to increase power tariff

The failure of Western Coalfields Limited (WCL) and other coal companies to supply contracted quantity of coal to Mahagenco is going to cost state’s power consumers dearly. Mahagenco is importing one-third of its coal requirement which will increase its generation cost.

This will be recovered from citizens by way of higher tariff by MSEDCL.
Mahagenco’s seven power stations need about 60 lakh ton coal every year. Due to acute shortage, the company has decided to import 20 lakh tonne. It will put an extra burden of Rs700 crore on the company.

A source in Mahagenco said that since last six months, coal companies were not supplying contracted quantity of coal. “Only 57% of coal was supplied leading to a shortage of 43%. We were forced to reduce our generation,” he added.

To add to the problems, there was a long break in rains this year. Temperatures in late September and October were quite high. The highest ever demand of 24,900MW was registered in October. Read More

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