Private power firms against exporting discounted coal

Private power firms against exporting discounted coal

Damodar Valley Corporation and a state-owned distribution company in West Bengal that are receiving fuel at a discounted price from Coal India on long-term contracts must sell their electricity locally in India and should not be allowed to export that, especially at a time when the country is facing a coal supply scarcity, said a clutch of private power companies.

They have raised objection through the Association of Power Producers, which urged the coal and power ministry to stop export of power generated from coal priced at a discount and meant for consumption in India. This comes after both public sector power companies won bids to supply electricity to Bangladesh.

“It is requested that necessary clarification may be issued so that cross-border supply of power should be from imported coal or from fuel procured at e-auction. This can be taken up with Bangladesh Power Development Board, and an undertaking from bidders may be made part of the bid, saying that they will not use domestic linkage coal for such cross-border supply of power,” Khurana said in the letter.  Read More

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