The state government paid Rs1,857 crore for domestic coal supplies in 2010, while the freight charges for bringing the coal to Gujarat amounted to Rs1,780 crore.
Imagine yourself placing an order for a product through a portal. You place the order, but then you realize that the portal charges an amount close to the product's price as delivery charges. What do you do?
This is the dilemma the Gujarat government finds itself in. Many people would probably decide against placing the order, but the government does not have such an option as the product in its case is coal - a commodity essential to power the thermal power plants in the state.
Data provided by Gujarat government shows that coal is supplied to the state at the price of Rs1,272 per metric tonne. However, the state has to pay Rs1,220 per metric tonne as freight charges to the railways - for bringing the coal all the way from Chhattisgarh to Gujarat.
The state government paid Rs1,857 crore for domestic coal supplies in 2010, while the freight charges for bringing the coal to Gujarat amounted to Rs1,780 crore.
"This shows the Centre's callous attitude towards Gujarat. The freight charges can be brought down by allotting coal to the state from Maharashtra instead of Chhattisgarh. We have written to the Centre and sought its intervention to reduce the burden on Gujarat, but we are yet to get any response," state energy minister Saurabh Patel, told DNA.
The state has had to spend huge amounts as freight charges for coal for the past many years. In fact, in 2008 and 2009, the average freight charges paid were significantly higher than the actual price of coal.
"In 2008, the state paid an average Rs1,108 per tonne as coal price, while freight charges were Rs1,195 per tonne. Similarly, in 2009, coal price was Rs1,191 per tonne, while freight charges were Rs1,251 per tonne," said energy department officials.
Lower supplies - Gujarat received 14.5 million tonne coal in 2010 as against the commitment of 16.4 million tonne - have led to increased consumption of imported coal.
"The consumption of imported coal in Gujarat increased from 1.06 million tonne in 2008 to 1.36 million tonne in 2010. At Rs6,675 per tonne, more than 2.5 times that of domestic coal, this is not doing any good to the state either," said officials, adding that the Centre must take steps to meet its supply commitments to Gujarat.
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