Central sector power, a burden on Gridco

• Posted in Power
• on January 17, 2017
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Even after repeated requests to deallocate its share of power from NTPC’s Barh Super Thermal Power Station (STPS) in Bihar, the cash-starved Grid Corporation of Odisha Limited (Gridco) is forced to buy costly power from Central sector.

While the average cost of power from Central thermal power stations (Odisha’s share) is estimated at `4.38 per unit, power from Barh STPS-II will cost `6.36 per unit. Tariff of Central thermal generating power stations is fixed by the Central Electricity Regulatory Commission (CERC).

With the State’s share of 14.79 per cent from the two units of Barh-II with an installed capacity of 1320 MW (2X660MW), Gridco will draw 1105.83 million unit (with Central sector loss of 1.98 per cent) during 2017-18. The total cost of power has been estimated at `704.30 crore.

The State Government has been requesting the Ministry of Power (MoP) from 2012 for de-allocation of power from NTPC stations outside Odisha including the Barh-II STPS. On August 31, 2015, the MoP notified for surrendering allocated power by different States including Odisha and sought willingness from other States to avail such surrendered power.

“The proposed de-allocation in favour of Odisha is yet to take effect as no alternative buyer has offered willingness to purchase power from Barh-II. Power from NTPC plan is being thrust upon Gridco in spite of any requisition to draw power from the two units,” Gridco sources said.
The State trading utility Gridco has projected the energy availability from Barh STPS-II of NTPC as per the share allocation in favour of Odisha in its annual revenue requirement (ARR) application for 2017-18 financial year.

This is bound to increase the power tariff in the State as Gridco will pass on the high tariff to consumers, the sources said.
Earlier, the MoP had de-allocated 155 MW from New Nabinagar STPP in Bihar last year following request from the State Government. The State’s share has been allocated to Uttar Pradesh.
Gridco has projected power procurement of 7371.37 million unit at estimated cost of `3227.39 crore from Central sector thermal generating station for the ensuing financial year. Chris Doleman Authentic Jersey

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