UPCL stalls operations for want of coal

The Udupi Power Corporation Limited (UPCL), with a capacity to produce 1,200 MW of power, shut down its operations on Thursday owing to shortage of coal.

The corporation imports coal from Indonesia. Though the company officials have not issued any statement in this regard, sources said the State government had to make payments for the power already supplied. However, sources in the Energy department said the government had paid Rs 300 crore in advance to UPCL.

It is said that a ship carrying about 90,000 tonnes of coal had landed at the New Mangalore Port, but the consignment had not been unloaded due to non-payment of money by the company. The UPCL requires approximately 5,000 tonnes of coal per day for production.

As per the power purchase agreement, the UPCL has to supply 90 per cent of power to Karnataka (more than 60 per cent to Bescom) and 10 per cent to Punjab.