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.

In a letter to both the power and coal ministries, Ashok Khurana, director-general of the association, said while Coal India is unable to meet its obligations under fuel supply agreements, usage of domestic coal for power supply to Bangladesh would be very inequitable for domestic generation companies which are unable to meet their power purchase obligations for want of adequate coal. ET has seen a copy of the letter. Read More

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