DC | Amrita Didyala | 3 hours 11 min ago
Hyderabad: With the cost of importing coal going up substantially due to the rupee value falling by 20 per cent over the last two months, the cost of power is set to go up substantially in the state.
As Andhra Pradesh imports a huge chunk of its coal from Indonesia and Malaysia, the impact is expected to be around 10 per cent more than the current cost.
Around 40 per cent of the state’s coal requirements are met by imports from these foreign countries and this makes the state highly vulnerable as the overall cost of transportation increases as well.
The state imports around 1.80 million tons of coal each year. So far the discoms have been claiming the additional cost incurred in the form of transportation, fuel etc., as Fuel Surcharge Adjustment charges in bills.
However, with the charges going further up and the APERC having turned down further quarterly FSA charges, these will get incorporated in the tariff.
“Though the state has already seen two tariff hikes this year, the tariff is likely to go up if the crisis situation continues. It has increased by a minimum of 10 per cent and is likely to go up even more,” said an official.
“Apart from increase in the cost of coal, the cost of diesel is also expected to go up. That will also increase the cost of production of power as well as that of cement. While domestic coal from Singareni is not sufficient for power plants in the state, the state’s dependence on imported coal will impact the production cost of power in a big way,” said president of FAPCCI, Srinivas Ayyadevara.
States:Andhra Pradesh
Hyderabad: With the cost of importing coal going up substantially due to the rupee value falling by 20 per cent over the last two months, the cost of power is set to go up substantially in the state.
As Andhra Pradesh imports a huge chunk of its coal from Indonesia and Malaysia, the impact is expected to be around 10 per cent more than the current cost.
Around 40 per cent of the state’s coal requirements are met by imports from these foreign countries and this makes the state highly vulnerable as the overall cost of transportation increases as well.
The state imports around 1.80 million tons of coal each year. So far the discoms have been claiming the additional cost incurred in the form of transportation, fuel etc., as Fuel Surcharge Adjustment charges in bills.
However, with the charges going further up and the APERC having turned down further quarterly FSA charges, these will get incorporated in the tariff.
“Though the state has already seen two tariff hikes this year, the tariff is likely to go up if the crisis situation continues. It has increased by a minimum of 10 per cent and is likely to go up even more,” said an official.
“Apart from increase in the cost of coal, the cost of diesel is also expected to go up. That will also increase the cost of production of power as well as that of cement. While domestic coal from Singareni is not sufficient for power plants in the state, the state’s dependence on imported coal will impact the production cost of power in a big way,” said president of FAPCCI, Srinivas Ayyadevara.
States:Andhra Pradesh
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