AIPEF seeks CAG audit of independent power producers

All India Power Engineers Federation (AIPEF) on Thursday demanded an audit of independent power producers by the Comptroller and Auditor General (CAG) after thermal power stations were allowed blending of imported coal during the ongoing dry fuel shortage.

New Delhi: All India Power Engineers Federation (AIPEF) on Thursday demanded an audit of independent power producers by the Comptroller and Auditor General (CAG) after thermal power stations were allowed blending of imported coal during the ongoing dry fuel shortage.

In a letter shot off to Union Power Minister R K Singh, the AIPEF has stated that the blending of imported coal will result in a hike in tariff by Rs 1.15 per unit. "AIPEF has demanded CAG Audit & Energy Audit for IPPs (independent power producers or private plants) in view of the recent Ministry of Power order to thermal plants allowing them to blend imported coal up to 15 per cent during the continuing coal crisis," an AIPEF statement said.

AIPEF Chairman Shailendra Dubey has expressed concern on hike of electricity cost due to blending of imported coal. The Union ministry of power has advised all the coal-based thermal generating stations to maintain adequate coal stock according to their obligations. In the case of domestic coal shortage, the generators can blend the imported coal up to 15 per cent with domestic coal, wherever technically feasible, to meet the increased power demand in the country.

According to AIPEF due to global increase of coal prices, the cost of imported coal has increased.The cost of coal to generate per unit of electricity with indigenous coal is Rs 3.22, while with 15 per cent blending of imported coal, the cost will come out to be Rs 4.37 per unit, the AIPEF statement said. The data of coal price parameters with respect to coal import from Indonesia and from South Africa shows that the landed cost of South African Coal is Rs 22,205 per tonne with coal of calorific value 5500.

In case of Indonesian coal, the landed price is Rs 21,720 per tonne, with calorific value 5000. While for a load centre thermal station the landed cost of Indian coal is Rs 5,150 per tonne with GCV 4000. "Import of coal at Rs 21,000 per tonne or Rs 22,000 per tonne is not justified as cost is prohibitive and energy cost escalates by about Rs 1.15 per unit. State Discoms which are already in crisis/financial difficulty cannot afford this price increase," he stated.

Moreover, the private generators are not covered under the CAG audit. It may be mentioned that the investigations of the Directorate of Revenue Intelligence (DRI) regarding forged documents of imported coal by IPPs and particularly by Adani, are pending decisions in the Supreme Court. AIPEF said the extreme crisis of coal shortage during 2021 must not be allowed to repeat in future, and CIL must take steps to increase coal production to ensure that the crisis does not repeat in the next/subsequent year.

The IPPs which have contracts of 25 years at fixed rates for each year must be directed to ensure supply to procurers as per their share and as per the bid rate contained in PPA (power purchase agreement). Since the Supreme Court has disallowed the pass through of coal increases the PPA bid rate must be followed/implemented, it stated.

As per the Tariff Policy 2016, the thermal power stations are required to be ready to dispatch at all times to meet power demand of the grid. This provision of policy must be applied and implemented on priority to CGPL Mundra (Tata project) and to Kawai (Adani) thermal stations which have closed/backed down their power stations during the crisis, it demanded.

The Ministry of Power must direct CGPL Mundra to arrange more fuel to increase PLF (plant load factor or capacity utilisation) of CGPL UMPP Mundra from 20 per cent to nearly 100 per cent, it also demanded. The government of India/Ministry of Power must draw up an action plan so that renewable capacity addition from solar, wind sources is ramped up so that the crisis of 2021 (thermal coal shortage) can be mitigated to that extent, it stated.

PTI