No cost & time implication by use of imported coal-PSERC

No cost & time implication by use of imported coal-PSERC
Thursday January 3, 2013
Punjab State Electricity Regulatory Commission (PSERC) has ruled out that there is no capital cost and time implications by use of limited quantity of imported coal for Rajpura Thermal plant.
PSERC was disposing off petition no. 56 by Nabha Power Limited(NPL) & to L&T Power Development Ltd.(LTPDL) that Punjab State Power Corporation Limited (PSPCL) has failed to fulfill its obligation of arranging sufficient quantity of coal in terms of the bidding Documents and power purchase agreement (PPA) for the 1400 MW (2×700 MW) Rajpura Thermal Power project.
NPL has submitted the total requirement of the coal to run the Project as per PPA is 6.68 million tons per annum (mtpa) whereas coal linkage under Letter of Assurance (LoA) is only for 5.55 mtpa implying a deficit of 1.13 mtpa coal for the Project.
NPL further submitted that the commercial feasibility of the entire Project was envisaged with target Availability of 85% and if it falls below 85%, the project would be running at loss and debt servicing would be at risk. Moreover model fuel supply agreement (FSA ) issued by Coal India ltd. (CIL) envisages 80% of the assured coal quantity which would include supply of imported coal to the extent of 15% in years up to 2014-15, 10% in year 2015-16 and 5% subsequently.
PSPCL alleged that the petition filed by the petitioners is an abuse of process of court. The petitioners are seeking decision of the Commission on assumptions and surmises.
Commission observed that PSPCL will help the petitioners at every level for arranging coal from CIL/SECL to the extent of 5.55 mtpa .With regard to allowing usage of imported coal offered by CIL and other international markets as well as domestic coal through e-auction the Commission notes that the PPA provides for use of domestic coal. The use of imported coal as per LoA was known to LTPDL at the time of bid submission and accordingly the Commission is not convinced that the petitioners did not account for the same.
A decision on similar lines was taken earlier for Talwandi Sabo thermal project ruling that LoA & PPA should are to operate in tandem.


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