Nagpur: With load-shedding looming large over the state due to coal shortage, the Maharashtra government on Friday decided to purchase 760MW power from Coastal Gujarat Power Limited (CGPL). The purchase would be made till June 15 through a short-term power purchase agreement.
The cabinet led by chief minister Uddhav Thackeray had given its nod to the power department led by minister Nitin Raut.
“Even if there’s a power shortage in the state, we will not allow load-shedding under any circumstances by purchasing power. The Maharashtra State Electricity Distribution Company Limited (MSEDCL) is allowed to procure electricity for a short period till June 15, 2022, until its generation and availability in the state is restored,” Raut told the media after the cabinet meeting.
The guardian minister said power demand has shot up due to the intense heat wave in the state. “Coal stocks are also depleting, and railway racks are not available many times. We have to store coal reserves for the monsoon. With the removal of all Covid restrictions, all industries and commercial establishments are operating at full capacity. Farmers’ demand has also surged due to the sweltering heat. As a result, the demand is constantly increasing and has reached 28,700 MW.”
Justifying the decision to purchase power, the North Nagpur MLA added that instead of buying electricity at Rs 12/unit in the open market, the government has decided to overcome the shortage by purchasing CGPL power at half the rate.
“The purchase will be done for the next two and a half months at a cost of Rs 100-150 crore to MSEDCL. This will not put any burden on the exchequer. The government entered into a long-term power purchase agreement with CGPL in 2007. The same company has entered into power supply agreements with Gujarat, Rajasthan, Haryana and Punjab. The power plant generates electricity via coal imported from Indonesia.”
The minister added that MSEDCL distributes 87% of the total electricity consumption in the state. “Due to summer, the highest demand has reached 28,489MW. This is an increase of 8.2% over the previous year. At present, there is a shortage of 3,500MW-4,000MW in the state,” he said, adding, the decision of the Indonesian government led to a huge surge in the price of imported coal.
Source: PTI
