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Power Supply Cut Stops Coal Mining in Nine ECL mines

  • Coal extraction in at least nine mines of the Eastern Coalfields came to a stand still after power supply was snapped by private power utility DPSC Ltd for non-payment of Rs 63 crore as security deposit. As a result, coal production has been hit by a whooping 2,500 to 3,000 tonnes per day in the nine mines, ECL officials said. Confirming the development, DPSC corporate affairs vice-president Soumen Dasgupta said, "We have snapped power to 25 points of supply out of 127 points since last Saturday." He warned more would follow. The non-payment of Rs 63 crore security deposit by ECL is equivalent to three months of average billing either by cash or bank guarantee as per the Electricity Act, Dasgupta claimed. ECL has a total 105 operating mines, of which 81 is underground and 24 open cast. Power disruption also affected water supply to the homes of 15,000 to 20,000 people in the region, ECL chairman and managing Director Rakesh Sinha said. Sinha said the company would move the Calcutta High Court against the snapping of power supply.
  • "The ECL has also moved against DPSC Ltd for incorrect billing and a case is already pending with the ombudsman for overcharging for power supplied through market purchase," Sinha said. ECL power demand is 110 MW out of which 90 MW is supplied by DPSC which has a license area of 618 km where ECL operates. Meanwhile, DPSC said its 30 MW plant at Chinakuri remains idle as ECL has stopped supplying coal seeking bank gurantee from DPSC. DPSC operates this plant under a lease which lapsed in March, 2011 and is under extension till March, 2012. Now, ECL wants to invite open tender for the plant which has irked DPSC which it was operating since the last 20 years on nomination basis.

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