The Sasan 4000 MW ultra power project is certainly a boon for the nation given its immense potential and long-term implications for power self-reliance.
India, Republic of (Press Release) September 26, 2007 --
The Sasan 4000 MW ultra power project is certainly a boon for the nation given its immense potential and long-term implications for power self-reliance. However, there are inherent complications and problems that require immediate attention compelling me to write this note.
If one looks at the long-term calculations some startling facts come to light. One, it is apparent that there is a huge windfall for the promoter Anil Dhirubhai Ambani Group vis a vis volume of the coal that is being made available to it. It is common knowledge that the 4000 MW plant would require upto 20 MT of coal per year. If we take the life of the PPA of 25 years, and it is a simple calculation, only upto 500 MT of coal would be consumed. What would be the fate of the rest volume of the coal? Would this precious natural resource become a tool for a private operator to fill its coffers? These are scary thoughts and as someone who swears by every bit of natural resources that Mother India carries in her womb, I am alarmed because this would mean both financial and natural loss to the Government of India. Hence I submit that the entire additional volume be monitored and should be made available on easy (and not ruthlessly commercial) terms to the people of the country. The government should play the role of an active referee here and should ensure that the coal price is lower than that offered by the Coal India Limited. It is also of importance to note that government should spare no efforts to ensure that the linked coal mine does not fall prey to the coal mafia prevalent in the region.
Two, there is a pressing need to bring in a policy issue also here given the high-decibel talk on natural resources these days. I wish to understand what is the government policy vis a vis utilization of coal (like in gas) and how does it ensure that the excess coal be utilized judiciously during the course of the Power Purchase Agreement (PPA) or thereafter?
Three, the government may also want to ensure that the best possible technology is used in design, operation and maintenance of the coal mine.
Four, in case there is coal available on expiry of PPA and no agreement is reached for sale of power with the off-taker government must have the right to take possession of the power plant as well as the coal mine.
As a proud citizen, I am certain good sense would prevail and government would do every bit to ensure that no vagueness is left in this critical project.
If one looks at the long-term calculations some startling facts come to light. One, it is apparent that there is a huge windfall for the promoter Anil Dhirubhai Ambani Group vis a vis volume of the coal that is being made available to it. It is common knowledge that the 4000 MW plant would require upto 20 MT of coal per year. If we take the life of the PPA of 25 years, and it is a simple calculation, only upto 500 MT of coal would be consumed. What would be the fate of the rest volume of the coal? Would this precious natural resource become a tool for a private operator to fill its coffers? These are scary thoughts and as someone who swears by every bit of natural resources that Mother India carries in her womb, I am alarmed because this would mean both financial and natural loss to the Government of India. Hence I submit that the entire additional volume be monitored and should be made available on easy (and not ruthlessly commercial) terms to the people of the country. The government should play the role of an active referee here and should ensure that the coal price is lower than that offered by the Coal India Limited. It is also of importance to note that government should spare no efforts to ensure that the linked coal mine does not fall prey to the coal mafia prevalent in the region.
Two, there is a pressing need to bring in a policy issue also here given the high-decibel talk on natural resources these days. I wish to understand what is the government policy vis a vis utilization of coal (like in gas) and how does it ensure that the excess coal be utilized judiciously during the course of the Power Purchase Agreement (PPA) or thereafter?
Three, the government may also want to ensure that the best possible technology is used in design, operation and maintenance of the coal mine.
Four, in case there is coal available on expiry of PPA and no agreement is reached for sale of power with the off-taker government must have the right to take possession of the power plant as well as the coal mine.
As a proud citizen, I am certain good sense would prevail and government would do every bit to ensure that no vagueness is left in this critical project.
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