Coastal districts likely to be hit as UPCL suspends power generation

Coastal districts likely to be hit as UPCL suspends power generation

Mangalore Today News Network

Udupi, June 14, 2014:  The coal based thermal power plant of the Udupi Power Corporation Ltd at Ellur near Padubidri has suspended power generation all of a sudden from June 12, Thursday evening citing shortage of coal.This is  all likely to result in  power cuts in the coastal district.

Meanwhile, UPCL officials have refused to comment. Sources meanwhile say the arrears due from the government to the UPCL   which has been  meeting 30 to 35 per cent of the demand for electricity in the state, was also one reason for the shutting down of the plant.

In the meantime, Lanco Infratech, the parent company has already issued statement in Delhi that shortage of coal has led to closure of its two units. The Lanco has entered into a power purchase agreement with five ESCOMs in the state for power supply. Accordingly, 90 per cent of the power generated is transmitted to the five ESCOMs.

With regard to the rumours of non-clearance of UPCL arrears, State Energy Minister DK Shivakumar said  the government is paying Rs 350 crores to the UPCL every month and that Rs 300 has crore has been given as advance. He also accuses UPCL of resorting to blackmail tactics and exuded confidence that the government would be able to tackle the situation efficiently.

Accordng to NMPT source, a vessel carrying 80,000 tonnes of coal has been anchored since the past three days  and that it will  unload coal only after the company remitted funds. UPCL needs 5000 tonnes of coal  for power generation every day.