PMO to meet CEOs of power firms

They are likely to seek diversion of e-auctioned coal at notified prices,equal distribution of the fuel to all utilities,seeking coal imports by Coal India Ltd.

Written by Priyadarshi Siddhanta | New Delhi | Published:February 22, 2012 1:53 am

Mounting paucity of coal,falling gas output from KG-D6 basin and rising coal imports costs would be some of the issues to be raised by power industry captains when they meet top officials of Prime Minister Manmohan Singh’s Office Wednesday.

In the meeting to be chaired by Singh’s Principal Secretary Pulok Chatterji with the Association of Power Producers (APP) ,the industry captains are likely to highlight their growing raw material insecurity,especially coal,in view of its demand-supply mismatch. According to CIL’s latest estimates,the gap would be 192.54 Million Tonne in 2012-13,of which demand would be 772.84 MT while supply would be restricted to 580 MT. Since this gap has to be met through imports,the imports of higher calorific coal would be around 128 MT.

Besides,increase in exports taxes by coal-importing nations has jacked up import prices by Rs 0.70-1.00 per Kilowatt hour. “Consequently the financial viability of the imported coal-based projects has been adversely impacted as the current contractual framework does not provide for adjustment of these increased costs,” APP sources said.

They are likely to seek diversion of e-auctioned coal at notified prices,equal distribution of the fuel to all utilities,seeking coal imports by Coal India Ltd.

Among the key industry leaders likely to attend tomorrow’s meeting include Reliance ADAG Chairman Anil Ambani,Deputy Chairman Tata Sons,Cyrus P Mistry,Adani Power chief Gautam Adani and Shashinath Ruia,Chairman Essar Group.

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