Arvind Kejriwal government seeks coal block from Centre to set up a plant for Delhi - Economic Times

NEW DELHI: The Kejriwal government has asked the Centre for a coal block that will help a private company set up a giant plant to supply adequate and affordable electricity to the city, Delhi's Power Minister Satyendra Jain told ET, barely a day after the prime minister made a jibe at promises of free power by politicians.

Jain said the state administration had major plans to reform the sector and expand power generation from both renewable and conventional sources.

"We have requested the GoI (government of India) to give a coal block to us, wherever it may be available. We will soon send a formal request to them about this. Our plan is to have 4,000 mw power of our own over the next four-five years," he said.

Arvind Kejriwal's Aam Aadmi Party swept to power this month, winning popular support with promises, including cheaper electricity.

People in Delhi have complained about rising power bills although distribution companies say that about 80% of the tariff they collect goes to meet the cost of electricity.

Delhi draws part of its power supply from obsolete, inefficient plants which are costly. It also depends on some gas-based plants, which do not have enough fuel. Distribution companies say Delhi depends heavily on high-cost supply.

AAP is also in favour of an audit of these companies' accounts to make sure that unjustified costs are not factored in by the regulator in determining tariffs. The distribution companies had initially challenged the audit in court but now say they are cooperating.

Jain said the newly sworn-in administration is working on an ambitious idea of having its own captive coal block which would fuel an "ultra mega power plant" by a private firm which could supply power to Delhi.

"We will organise competitive bidding and let the private producer manufacture coal-based power in the vicinity of the block itself, instead of transporting coal all the way to Delhi and producing power here, as it would only add to costs. The power manufactured can be brought to Delhi through the grids. We will have a power purchase agreement with the producer and keep paying him for the power we consume, instead of spending on construction and upkeep of a power plant itself," said Jain.

In his speech on Sunday at 'Re-Invest,' a high-profile meeting of global investors, Modi questioned promises of "free power" by parties during election campaigns. "Water accounts for a major part of a farmer's input costs. The main component of water cost is electricity, which is not supplied (by state governments). Why then do parties still promise free power before every election? And who makes these promises? Those (states) who do not have electricity.