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Coal block cancellation casts doubts on Goa’s power scene

The cancellation of the Chattisgarh coal block allotted to the Goa Industrial Development Corporation (GIDC) has come as a huge blow to the state government, with the corporation left with the options of either getting  the block through auction or importing coal to run its private-public partnership (PPP) plant.
In the meanwhile, the government will have to pay exhorbitantly to purchase power from the open market after negotiating with the central government for supplies.
As per the Electric Power Survey (EPS) conducted by CEA, the state’s electricity requirements will reach a humungous 1100 MW by 2020-21. In addition the government has to cater to industrial demand, given that in its investment policy, it has confidently announced its plans to generate Rs 25,000 crore of investment and 50,000 jobs in 10 years.
The government was  banking on the Gare Pelma Sector III coal block in Chattisgarh allotted to GIDC in in Goa on November 12, 2008. With the Supreme Court declaration that all coal blocks allotted between 1993 and 2008 were illegal, their allocation has been cancelled.
The state receives power allocated from the central sector --an amount of 425MW. The requirement, as of now, has reached its peak of 540 MW, Power Minister Milind Naik said. He admitted that the government also purchases power during evening peak hours to meet the growing demand.
At the recent Joint Electricity Regulatory Commission (JERC) public hearing held on March 11 GOACAN co-ordinator Roland Martins had pointed out that “Just because Goa has a revenue gap of Rs. 929 crores, it cannot be allowed to transfer this burden on to the consumers.”
Martins added “We cannot be silent spectators to the fact that (Electricity Department, Goa) seeks to pass on consumers this Rs 929 crores “tariff shock” in phases by increasing the tariff over the next two years i.e. 2015-16 and 2016-17.”
In a recent talk with Herald, the then head of the Confederation of Indian Industry (Goa)  Kirit Maganlal, had said that if these blocks were cancelled, industries would move out.
Others business insiders have told Herald that there are power-dependent international pharma companies which are currently struggling. For potential investors, this could be a big no too.
The state electricity board is carrying on an audit in a bid to streamline distribution and transmission losses which have been estimated at a conservative 12 to 15 per cent.
Insiders, however, ask that if there is no power itself then what is left to distribute, and argue that the government has been doing nothing concrete to tap alternate sources like privately generated power or solar power.
The power minister told media that he has up put up a demand for Rs 1200 crore to enhance the state’s power infrastructure. Naik said he has met Union Power Minister Piyush Goyal to appraise him about the immediate requirements of Goa in the power sector.

source: http://www.heraldgoa.in