Power producers protest rise in coal auction prices
Electricity generators are worried that the ‘arbitrary increase’ in prices of coal allocated to the power sector through ‘e-auctions’ would raise electricity prices, and, in turn, deepen the crisis of stressed power projects, as distribution companies would not source electricity from these plants at higher costs.
Major stressed power plants which procure the fuel through e-auction and are likely to be adversely impacted by price rise are 1,200 MW Essar Mahan, 1,320 MW Jaypee Nigrie, 1,050 MW GMR Kamalanga and 1,200 MW DB Power Bardhara unit.
In a letter written to coal secretary Sumanta Chaudhuri, the Association of Power Producers (APP) complained that various subsidiaries of Coal India (CIL) have “suddenly and unilaterally” increased floor prices (reserve price) at which the auctions begin.
