Punjab to import coal worth Rs 800 crore

06 May 2022 CW Team

The Punjab State Power Corporation (PSPCL) to procure imported coal for its thermal plants. Punjab may have to import 6 lakh tonne of coal to meet the demand during the paddy season. It will cost the state more than Rs 15,000 per tonne.

The Union Power Ministry has advised Punjab and other state utilities to import coal as Coal India was unable to meet the growing demand.

The Power Ministry suggested to all state utilities to ensure that foreign sellers deliver of 50 per cent of the allocated stock by June 30 and another 40 per cent by August and the remaining 10 per cent by October. The advisory comes in the wake of states demanding more coal to run their thermal units in the face of growing demand.

The price of indigenous coal is around Rs 5,500 per tonne. Coal imported from Indonesia costs around $200 per tonne (Rs 15,000). Another Rs 3,300 per tonne transportation charges will be required to transport the coal from the seaport in Gujarat to Punjab.

The minimum cost difference between domestic and imported coal will be about Rs 13,500 per tonne. Punjab will have to bear an extra expenditure of about Rs 800 crore if it imports all 6 lakh tonne of coal.

As per reports, a couple of states have already floated tenders, the state to take a call soon on this.

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