Udupi: Power generation at UPCL shutdown since 2 months due to coal procurement issues

Team Udayavani, Oct 11, 2021, 2:21 PM IST

Udupi: Udupi Power Corporation Ltd (UPCL) power plant in Nandikoor near Padubidri has reportedly halted its operation for 2 months now due to financial and coal procurement issues.

As per sources, the coal-based power plant has been facing financial difficulties against the backdrop of a hike in coal prices in the market.

Coal prices have witnessed a three-fold jump in the international markets recently. Unlike many coal power stations in the country, UPCL mostly depends on imported coal for electricity generation. So the rise in coal prices has prompted the UPCL’s management to suspend the procurement of fuel, reports said.

UPCL has two 600MW electricity generating units installed. The state government procured power from the company only when there was a shortage.

It is also learnt that the state government owes the company Rs 2,800 crore in dues for power purchased from it. This has further hurt the financial position of the company, sources said.

Meanwhile, the coastal districts are being supplied with power procured from elsewhere. Sources in the Mangalore Electricity Supply Company (Mescom) officials said that there is no need for load shedding in the near future.