New Delhi: As the demand for electricity spiked amid soaring temperature, the government on Saturday asked all states, Union territories and electricity generating companies (gencos) to ensure adequate coal stocks and timely turnaround of the mineral’s supply (unloading from railway rakes).
Owing to a continuing shortage of coal due to its record high prices in the wake of Russia’s invasion of Ukraine, the Union power ministry also made it clear that the supply of coal to gencos will only be made on a proportional basis.
“The procurer and sellers are legally bound by the PPA (power purchase agreement) signed by both parties. While the procurers are bound to pay the bills timely, the gencos (sellers) are bound to maintain adequate fuel stocks and offer availability as per PPA,” the ministry said in a circular issued on Saturday. “Not maintaining adequate fuel stocks or not giving availability on any pretext (such as the high price of imported coal etc) is inexcusable.”
