The Hindu : Andhra Pradesh News : Genco to seek subsidy for coal import

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Thursday, Nov 20, 2008
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Andhra Pradesh

Andhra Pradesh

Genco to seek subsidy for coal import

Special Correspondent

HYDERABAD: Import of coal proposed for proper operation of thermal power stations of the Andhra Pradesh Power Generation Corporation is likely to place an additional burden of Rs. 1,000 crores on the exchequer.

This burden has been worked out by the AP Genco for the 10 lakh tonnes it wants to import from Indonesia this year, based on the coal price and freight charges prevailing in the international market at present. The undertaking is contemplating to build up stocks for the thermal stations which these days are being deprived of adequate supplies. The AP Genco, however, proposed to meet this additional burden by seeking a Rs. 1,000-crore subsidy from the State government as there is no scope to collect the required additional funds from consumers. With the government taking a policy decision not to hike power tariff for five years, any increased collections from consumers has been ruled out.

Chief Minister Y. S. Rajasekhara Reddy posted a meeting for Thursday to consider this issue . Officials say that the AP Genco has been forced to resort to import coal as Singareni and Mahanadi coalfields are making inadequate supplies against the “coal linkage agreements”.

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