The Hindu Business Line : SEBs will have to shell out more for fuel

THE State electricity boards, which are struggling to stay afloat, will now have to bear the burden of an additional fuel bill of close to Rs 250 crore in the 2002-03 fiscal due to the rise in coal freight costs by 0.83 per cent.

This estimate is based on a back of the envelope calculation assuming that the average distance of coal transportation is 750 km, specific consumption of coal 0.71 kg per unit, coal cost is Rs 475 per tonne and an equal rise in coal freight across distance segments.

The increase in coal freight will result in a marginal rise in penetration of imported coal in the domestic market.

Currently, coal imports for power plants are taking place largely on the western coast for beneficiation - blending with domestic coal to improve fuel quality - and are of the order of a few million tonnes.

With regard to petro products, the reduction in freight costs in diesel, kerosene and the rise in LPG freight will result in a drop in overall freight cost of the three commodities.

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