State Govt forced to by costly central sector power

Power
Power

BHUBANESWAR:  Even after repeated request to deallocate its share of power from NTPC's Barh Super Thermal Power Station 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 the central thermal power stations (Odisha's share) is estimated at Rs 4.38 per unit, power from Barh STPS-II will cost Rs 6.36 per unit. Tariff of central generating power stations are fixed by the Central Electricity Regulatory Commission (CERC). With the state's share of 14.79 percent 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 percent) during 2017-18.

The total cost of power has been estimated at Rs 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 the Odisha including the Barh-II STPS. The MoP notified on August 31, 2015 for surrendering of the 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 the power from Barh-II. Power from the NTPC plan is being thrust upon Gridio in spite of any requisition from Gridco to draw power from the two units," sources in Gridco 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 Ministry of Power 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 asllocated to Uttar Pradesh. Gridco has projected power procurement of 7371.37 million unit at estimated cost of Rs 3227.39 crore from central sector thermal generating station for the ensuing financial year.

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