AIPEF to conduct CAG audit of independent power producers

After thermal power stations were allowed to blend imported coal during the ongoing dry fuel shortage, the All India Power Engineers Federation (AIPEF) has demanded an audit of independent power producers by the Comptroller and Auditor General (CAG).

The AIPEF said in a letter to Minister of Power R K Singh that blending imported coal might result in a tariff increase of Rs 1.15 per unit.

Given the rapid Ministry of Power order to thermal plants allowing them to blend imported coal up to 15% during the ongoing coal crisis, AIPEF has demanded a CAG Audit and Energy Audit for Independent Power Producers or Private Plants (IPPs), according to an AIPEF statement.

Shailendra Dubey, Chairman of the AIPEF, has expressed concern about the rise in electricity costs caused by the blending of imported coal.

All coal-based thermal generating stations have been advised by the ministry of power to keep adequate coal stock in order to meet their obligations.

In the circumstance of a domestic coal shortage, generators can mix imported coal up to 15% with domestic coal, if technically possible, to meet the country's increased power demand.

According to AIPEF, the cost of imported coal has increased due to a global increase in coal prices.

According to the AIPEF statement, the cost of coal to generate per unit of electricity with indigenous coal is Rs 3.22, while the cost with 15% blending of imported coal is Rs 4.37 per unit.

The landed cost of South African coal, with a calorific value of 5500, is Rs 22,205 per tonne, according to data on coal price parameters for imports from Indonesia and South Africa.

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