News
Emergency coal purchase approved to avert power crisis
View(s):- Decision follows failed quality test on 60,000‑tonne shipment
By Damith Wickremasekera
The Cabinet has given the go-ahead for the emergency purchase of coal for the Lakvijaya power plant in a bid to avert a possible energy crisis in the months ahead, a senior government source said.
The decision was taken after coal stocks purchased from South Africa failed a quality test, sparking fears of a power crisis if adequate supplies cannot be secured before the monsoons begin in May, when unloading becomes difficult.
“The Cabinet has given the approval for the emergency purchase if the need arises; otherwise, there is the possibility of an energy crisis,” the official said.
In addition to the emergency purchases, the government will also float a term tender to ensure the long-term continuity in coal purchases.
Quality tests on the samples from the ship carrying 60,000 MT of South African coal purchase failed, putting authorities in this quandary. While there are 23 shipments in all, nine are still on the way. After the coal stock in the first ship failed the quality test, the others are also being subject to tests.
The government has already imposed a USD 2 million penalty on the first shipload while a quality test on a second ship is underway.
The coal tender is itself under scrutiny with allegations of corruption. It is alleged that the tender conditions had been altered to accommodate an Indian company, which imported the South African coal.
There are allegations that the timeline for the tender had been shortened and that while a tender is normally valid for 42 days, this period had been reduced to just 21 days. The opposition is demanding that the related documents be tabled in parliament.
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