Power consumers in Punjab are set to get relief from high tariffs in the next financial year as the state will start getting low-cost fuel to generate electricity from a captive coal mine from next year, which will reduce its costs by 60%.
“We are planning to pass the benefit to consumers from the next fiscal. Average savings to consumers would be about 16 paise per unit,” PSPCL chairman-cum-managing director Baldev Singh Sran told The Tribune.
Officials said, the Punjab State Power Corporation Ltd (PSPCL) will be able to save around Rs 750 crore annually on its fuel cost.
It will get coal from Pachwara (Jharkhand) at a little less than Rs 1,500 per tonne, including taxes, significantly cheaper than the current procurement of coal at around Rs 2,400 per tonne from Coal India Ltd (CIL).
The corporation has secured a supply of around 7 million tonnes of coal every year from the Pachwara coal block, which was awarded to the state three years ago for its captive utilisation. Read More