UPCL to purchase power from more private players

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UPCL to purchase power from more private players

Shishir Prashant / New Delhi/ Dehradun October 28, 2011, 0:27 IST

With the Assembly elections round the corner, the Uttarakhand Power Corporation Limited [UPCL], the state-run sole power distribution company, is gearing up to meet the challenge of any future shortage.

Concerned over the falling hydropower generation in the beginning of winter period, the UPCL is looking forward to purchase power from more private players like Tata Power to fill the gap to minimise the power cuts during the election period in January-February.

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With the hydropower generation declining by almost 30 to 40 percent due to falling water-level in major rivers like Ganga and Yamuna this month, the state run UJVN Limited is now producing only 13-14 million units per days forcing UPCL to purchase power from outside the state.

Currently, UPCL is buying 50 Mw power from Sree Cement at Rs 4.21 per unit. From next month, it would purchase 100 Mw from Sree Cement. To be on the safer side, the UPCL is also looking forward to buy power from Tata Power for the winter period when the hydropower generation is at its low in the hills state. “We are not taking anything to chance during the winter period. So we have already invited tenders from other companies like Tata Power also,” said UPCL managing director Anil Jain.

However, Jain said he has also held talks for the return banking from Punjab. “If start getting return banking, then the situation will also improve,” said Jain.

The purchase of power from private players is likely to affect the health of the ailing UPCL which buys power from UJVN at much cheaper rates of Rs 1-2 per unit.

The scheduled four to five hour power cut for industries is continuing, said A K Johari, Director Operation of the UPCL, the sole power distribution agency in the hill state.

Both scheduled and unscheduled power cuts are troubling the industry during the festive season, claimed industrialists.

With the power production showing a declining trend, power cuts have become the bane of the industry especially the Micro Small and Medium Enterprise (MSME) sector.

The repeated unscheduled power cuts not only affect the productions of the industries but also cause economic losses to the government as well, said industrialists. The power supply is being cut at least 3 to 4 times a day, they added.