Wednesday 13 August 2008

Coal-based Thermal Power Plants Faces Another Big Problem

Shankar Sharma, Member, Mysore Grahakara Parishat writes

The state government is giving opposite signals concerning Chamalapura thermal power plant. It states one day that it is not proceeding with the project and contradicts it the next day.

Amidst this confusion, it has come to light that all coal-based thermal power plants are facing another major problem, that of fuel supply. A story in "Business Line" of 7-8-08 quotes Partha Bhattacharya, Chairman of Coal India Limited as saying that existing coal-based power plants are using up more coal than CIL can supply them. As a consequence, these plants have to import coal. But imported coal (Rs. 5,500 - 6,000 per ton) is far more expensive than the subsidized domestic coal (Rs. 1,000 - 2,000) and the companies are reluctant to spend large amounts on fuel. Therefore, there is a fuel shortage and these coal-based power plants are not working at full capacity.

Now, many more coal-based power plants are being proposed all over the country with seven of them coming up in Karnataka including the one at Chamalapura. When the existing coal-based power plants are having difficulty getting coal supplies at economical rates, where the proposed new power plants will get theirs is not clear.