Visakhapatnam: Coal import by APGenco is in the eye of a storm. Former Union energy secretary E.A.S. Sarma wrote to state energy secretary Ajay Jain, saying that Genco proposes to import 3 million metric tonnes of coal and the price it has obtained from suppliers is about 30 per cent more than the price at which Coal India Ltd, a Central PSU has offered.
The incremental cost on this account could exceed Rs 2,000 crore and the burden would fall on electricity consumers, he said.
Mr Sarma said that he had earlier cautioned the state government to be aware of the significant decline in global coal prices and make sure that APGENCO procures imported coal at a highly competitive price.
“Indirectly, many state government agencies would also bear the brunt of this, as they too are among the consumers of electricity. Already, I had a few days ago, cautioned the state government not to extend the road-cum-rail transport contracts with the private companies, when the Central PSU, Shipping Corporation of India (SCI) had offered to charge much less. I understand that my letter has not made any difference to APGENCO whose decision makers are apparently more attracted to expensive private contractors. The state is paying three times the rate secured by Tamil Nadu and Telangana,” he said.
He also requested both the state energy department and the state finance department to intervene and stop this financial profligacy.
“Many power stations in the State are designed to burn indigenous coal and a PSU like CIL supplying it should be welcomed as it will help CIL to invest locally, creating employment within the country. I hope you will act quickly in time as otherwise APGENCO is likely to finalise the suppliers of imported coal shortly,” Mr Sarma wrote in the letter.
