Government loses Rs 840 crore for poor power transmission network

Published: 18th March 2013 12:37 PM  |   Last Updated: 18th March 2013 12:37 PM   |  A+A-

The State Government’s failure in developing transmission network for evacuation of thermal power from independent power project (IPP) of Sterlite Energy Limited (SEL) has resulted in a revenue loss to the tune of Rs 840 crore.

SEL of the Vedanta Group had signed an MoU with the Government in 2006 for setting up 2400 MW (4 X 600 MW) thermal power plant in Jharsuguda district.

As per the agreement, the State was entitled to get 25 per cent of the generating capacity. The first unit of the IPP is dedicated to the State. As per the revised agreement in 2008, the State was entitled to additional seven per cent of power from other three units.

Gridco, the State run power trading utility, entered into power purchase agreement with SEL to procure the State’s share of power. In terms of the MoU and PPA, the utility had to arrange for evacuation of power from SEL. The first unit was synchronised to the grid sub-station of Gridco through a 220 KV double circuit line owned by Vedanta Aluminium Limited (VAL). The second unit was synchronised to the Power Grid Corporation of India Limited (PGCIL) grid in March 2011. The State’s share of seven per cent power was to be evacuated by Gridco through its own transmission network.

“The company did not plan any addition to its transmission lines for evacuation of power for which it had to depend on the line of VAL and PGCIL. Further, the decision for capacity addition by construction of 400 KV DC line was taken in November 2010,” the latest CAG report stated.

Due to inadequacy of transmission line of Odisha Power Transmission Corporation Limited to evacuate power from both the units of SEL, IPP had to inject power generated from its plant to VAL line. This resulted in short drawal of about 4000 MW with a consequential loss of transmission charges to the tune of Rs 97 crore.

“Had the power been available to Gridco, it could have sold it outside State under unscheduled interchange route at a higher rate and earned maximum revenue of ` 742.11 crore,” CAG report stated.

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