New Delhi: Worried over a sharp increase in power demand and shortages in some areas, the Centre on Friday asked the generating companies to maximize output, according to a release. The Power Ministry has issued directions to the generating companies stating that with soaring power demand and power shortage in some areas, electricity generation needs to be maximized, said an official.
The ministry expressed concern that despite efforts to increase the supply of domestic coal, there is still a gap between the requirement and the supply of coal, because of which the coal stocks at the generating stations are depleting at a worrisome rate.
Taking note of the fact that the blending of imported coal to the extent of 10 percent is not happening as stipulated, and the reserve stocks of coal are continuing to dip, the power ministry had issued directions to all the generating companies on May 18 that if the orders for import of coal for blending are not placed by May 31, and if the imported coal for blending purpose does not start arriving at the power plants by June 15, the defaulters would have to import coal for blending purpose to the extent of 15 percent till October.
In the light of the present emergent circumstances, the ministry said that the mechanism for billing and payment for these plants shall be as per Power Purchase Agreement. However, to enable the generating companies to import coal with adequate cash flow, the provisional billing shall be done by them on a weekly basis.
Further, payment of at least 15 percent of the provisional bill shall be made by the procurers within a week from the date of receipt of the bill. This provisional billing and payment shall be subject to reconciliation during final billing and payment on a monthly basis as per the PPA.
In case of default of payment of 15 percent of the weekly provisional bill, the generating company shall be free to sell 15 percent power in the power exchange. The generating companies shall ensure blending with imported coal and maintain coal stock as per extant norms and the directions issued by the ministry from time to time.
The direction is for coal imported for blending by such domestic coal-based power plants up to March 31, 2023.
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