Centre clarifies on Odisha objection to Talcher Thermal Power Plant

The actual tariff, however, will be determined by the Central Electricity Regulatory Commission (CERC).

BHUBANESWAR: With the State Government blaming the Centre for imposing extra financial burden on the consumers with hefty power tariff, the Ministry of Power has said the cost of power of the proposed Talcher Thermal Power Plant (Stage-III) is based on the latest cost estimates of the project.

Responding to Energy Minister Susanta Singh’s September 12 letter, Union Minister of State for Power R K Singh said the power purchase agreement (PPA) of the project was signed in 2010 and the tariff of `2.68 per unit was based on the feasibility report approved by the Government.

“The present tariff cost of `3.4 per unit is based on the latest cost estimates which include state-of-the-art technology for curbing pollution as per the revised environmental norms by the Government entailing increase in the capital cost. Besides, the procurement cost of coal has also gone up during this period,” Singh said in his letter to Chief Minister Naveen Patnaik.

Considering the availability of long term power for 25 year for Odisha, Singh said the present estimated tariff of `3.4 per unit (for first year) and levelised tariff of `3.05 per unit is very reasonable in the present context.

The actual tariff, however, will be determined by the Central Electricity Regulatory Commission (CERC).
To the State’s proposal for evacuation of power from TTPS State-III project, Singh said as per March 9, 2018 CERC order if a State draw power from the plant through its own transmission system, no point of connection (PoC) charges and transmission losses are levied. The same has been discussed and agreed in the standing committee on transmission planning meeting of eastern region on September 1, 2017.
On the State’s request to surrender power from NTPC’s Barh-I and II projects, the Union Minister said power from Central generating station is allocated to various states in accordance with the guidelines approved by the Centre.

“As per CERC regulations, the surrendered power is allocated to other beneficiaries only if they give their consent to avail such power. Till such time, the request for surrender of power by any other beneficiaries cannot be accepted because the investment already made on power plants based on the PPAs signed by various states including Odisha,” the letter stated.The request of Odisha has been circulated to other states seeking their willingness to avail the surrendered power.

On the State’s request for swapping of surrendered power from Barh power plants with power from NTPC’s Kaniha and Tacher, Singh said none of the beneficiaries have surrendered power allocated to them. Since  there is no power to spare from the two plants, it is not feasible to accept the State’s proposal.
Singh solicited the Chief Minister’s presence for proposed laying of foundation stone of the project by Prime Minister Narendra Modi during his visit to Talcher on September 22.

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