Tamil Nadu Generation and Distribution Corporation (Tangedco) official said that this is due to the transportation of coal from Odisha, which is the only source for Tamil Nadu power generation company.
An official of Tangedco while speaking to IANS said, “There is ample Coal at Paradip Port in Odisha, but it has become difficult to charter bulk carriers at present. There is a long queue of ships at the port and hence we are not able to load coal.”
There are five coal-based thermal power plants in Tamil Nadu and the five plants together require 60,000 tonnes of coal for generation of power but only half the volume or 30,000 tonnes of coal is received.
Tangedco has a heavy shortage of coal and the depletion stock would lead to shutting down of all the power plants leading to a short supply of power. Tangedco officials said that this would lead to spot purchase of power from private entities outside the state and would become a high burden for the power utility.
Another factor that is plaguing the coal supply to Tangedco is the fall in supplies of Coal India Ltd (CIL) due to heavy rains in its mines even though Tangedco has a coal purchase agreement with CIL.
It may be noted that the five thermal power plants together have a capacity of 4200 MW of power and the shortage of coal would lead to the shutting down of these plants and substituting this much power through spot purchase would create major financial losses to the power utility of Tamil Nadu.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.