Costlier coal adds to fund-starved PSPCL's problems

Aman Sood

Patiala, March 6

After having faced power cuts during and post paddy season last year, Punjab may face the same situation this season.

The Russia-Ukraine crisis has pushed the coal prices up, leaving the state with no option but to rely on indigenous coal. The state needs additional power in June when the paddy season starts. More than 14.5 lakh tubewells draw millions of litres of underground water. According to experts, the demand may rise up to eight per cent this year as there will be no restrictions on power consumption under normal conditions.

“Last year, the demand during the paddy season touched 15,000 MW against the supply of around 12,000 MW. This year, the maximum power demand will hover between 15,500 MW and 16,000 MW,” said VK Gupta, spokesperson, All-India Power Engineers Federation. The PSPCL is already trying to arrange more power even as the rate has increased by Rs 1 per unit in the power exchange.

The main hindrance to purchasing additional power may come from the transmission constraints. Punjab needs to strengthen its transmission system capacity to draw 9,000 MW of power from outside sources. The PSPCL has been making efforts to revive the Pachhwara coal mine block in Jharkhand. Coal dispatches from the mine is expected to start in May.

“Operating own mine could bring down the cost of production by 30-40 paisa per unit and variable cost of state-run thermal plants. With the availability of coal from own mine, the PSPCL can build its stock at Lehra Mohabbat and Ropar thermal plants. This will enhance power generation within the state and meet the breakdown eventualities,” said a senior PSPCL officer.

Funds are another stumbling block. Buying additional power means more money. The fund-starved PSPCL already awaits crores of rupees pending towards the state government for subsidised power.

“In case the newly elected government does not make arrangements for more funds, the PSPCL will have to rely on loans to buy more power,” said the official. However, good news is that water level in Bhakra and Ranjit Sagar dams is more as compared with last year, implying that slightly more power may be available during the paddy season.