Senthilbalaji urges Centre to ensure adequate coal supply

CHENNAI: Electricity Minister V Senthilbalaji on Saturday urged the union government to instruct the coal companies to improve the supply of coal and the railways to provide adequate rakes for seamless movement of coal from mines to cater the generation needs of TANGEDCO.

"Considering future demand growth, TANGEDCO is building new thermal power projects with a total capacity of 8340 MW of coal fired power stations under various stages of construction, " he said, while addressing the Conference of Power and Renewable Energy Ministers of States/UTs in Udaipur.

He noted that at present a maximum of around 35 rakes are being dispatched from a single entry/exit at Talcher mines, leading to severe congestion in Paradip Port enroute. "Out of which a maximum of only 14 rakes (around 50,000MT) are moved for TANGEDCO, " he added.

The minister also reiterated Chief Minister M K Stalin's demand for withdrawal of the Electricity (Amendment) Bill, 2022 and allowing only the State-owned distribution licensees to continue the supply of quality power at affordable rates to the people.

Senthilbalaji sought reduction in the interest rates of the central financial institutions like REC and PFC which charged 12.14% and 11.45%. He said that TANGEDCO availed a total of Rs 71,000 crore loan from the two institutions and demanded reduction of interest rates to 8%.

He said that the 6000 MW solar power park with 2000 MW hour battery storage capacity to reduce high cost power purchase and provide uninterrupted power supply.

He said that the Ministry of New and Renewable Energy has issued Renewable Purchase Obligation for the energy storage system and present market rate for 1MW hour system works out to Rs 3.5 crore. He sought capital grants in the forms of viability grant funding for 50 per cent of the project cost at a low interest rate on a long term basis of 15 years from MNRE.

He also suggested that a single RPO may be issued instead of categorising wind, solar and hydro.

The minister also cautioned the union government to take necessary steps to educate the fishermen and sort out the fears in their mind to implement offshore wind projects in the state which has a potential of 31 gigawatt at 100 meter height. He also demanded the union power ministry to give fresh direction to the Central Electricity Regulatory Commission to include Raigarh-Pugalur-Thrissur HVDC assets under National components to avoid the imposing of huge tariff burden on consumers.