Uttar Pradesh to import coal for power

The Uttar Pradesh government initiated the process of issuing a formal order for importing coal from foreign countries — in a move which was fraught with chances of a hike in power tariff in the near future. A top official in UP Power Corporation Limited (UPPCL) confirmed that the government has granted its nod to the procurement of coal from foreign shores in the eventuality of a coal crisis, especially in August when monsoon rains result in flooding of coal mines in India. The state government’s move follows the Centre’s approval of importing coal to meet the exigency. In May, the Centre had asked the states to immediately start importing coal to meet power requirements and to lift coal by road as failure to do so may lead to shortages in states during the monsoon. Union power minister RK Singh had even written to chief ministers of all states which did not start the process of coal import. The power ministry has expressed its concern with the UP that the tender process for coal import has neither been started nor completed. He has also asked to lift the entire quantity of coal offered to the state by coal companies through RCR (road-cum-rail) mode to build coal stocks. According to the arrangement, the UP government will procure 5.5 lakh tonnes of imported coal which would be enough to fuel the coal-fired thermal power plants for August and September. This will cost the state exchequer Rs 1,100 crore.