Bail out State from power crisis, Jagan writes to PM

Urgently seeks 20 coal rakes in view of alarming dip in reserves

Chief Minister Y.S. Jagan Mohan Reddy has urged Prime Minister Narendra Modi to allot 20 coal rakes to Andhra Pradesh in view of the alarming power situation in the State triggered by an unfolding international energy crisis.

“The unfolding global crisis has triggered a three-fold increase in electricity prices across Europe and China and has hit India recently. A.P. has seen a 15% increase in demand for power in the last six months and by 20% in the last one month. The coal shortage is also pushing the country’s energy sector into turmoil,” Mr. Jagan Mohan Reddy said in his letter to the Prime Minister.

In a letter written to Mr. Modi on Friday, Mr. Jagan Mohan Reddy urged him to revive the stranded/non-working pit-head coal plants in India without the PPAs, or revive coal linkage on an emergency basis, to save on precious time involved in coal transport and quality limitations in coal transportation to non-pit head coal plants.

“There is an emergency need to supply deepwater well gas available with ONGC to the 2,300 MW stranded/non-working gas plants in A.P. and the deficit of nearly 500 MW from Central Generating Stations due to plant maintenance can be bridged by reviving the plants at the earliest, or their maintenance may be postponed,” Mr. Jagan Mohan Reddy said, adding that directions may be given to banks to provide working capital loans liberally to Discoms till the crisis is tided over.

“A.P. has been meeting a grid demand of about 185-190 MU daily and power generation by APGENCO meets about 45% of power demand and we hardly have coal stocks for one or two days. APGENCO are operating plants at less than 50% of their 90 MU/day capacity due to coal shortage. The Central generating stations have also not been able to supply more than 75% of their 40 MU/day capacity. A.P. has not been able to execute contracts with coal-based plants as it has been absorbing energy from 8,000 MW of renewable energy and we are spending three times more than the daily average of ₹4.6 per kWh. The rates in the days ahead and real-time power markets are soaring and peaked to ₹20 per unit and the availability of power has also become an issue,” said Mr. Jagan Mohan Reddy.

The Chief Minister also reminded the PM that the State would be plunged into a power crisis as witnessed in 2012 when unplanned power cuts had resulted in chaotic conditions.

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