NEW DELHI, May 21 India's four coal-rich states have demanded cheap electricity supply for their power plants.
The states -- Jharkhand, West Bengal, Orissa and Chhattisgarh -- said they have demanded cheap electricity and other incentives. The states that do not have coal have warned the federal government against the move.
The four states have combined coal reserves of 148,004 million tons. They are keen some of the electricity generated from new power plants being awarded through a tariff-based competitive bidding process be reserved for them.
A Power Ministry spokesman said the four states are asking for power at a variable cost that could be a proportion of profit or the extra cost incurred by states not endowed with coal for transportation of fuel.
Non-coal reserves states such as Gujarat, Haryana and Punjab oppose this demand on the grounds it would hurt the country's development.
They say other mineral-rich provinces would make similar demands.
Copyright 2007 by UPI
