Vedanta's power units operate at low capacity on weak demand

Vedanta's 600 Mw power unit in Odisha operated at a lower PLF of 50% in July-Sept quarter due to power evacuation constraints

The independent power producer (IPP) units owned by metals & mining conglomerate Vedanta Ltd at Jharsuguda, Korba and the Malco plant operated at low PLFs (plant load factor) in the July-September quarter on lukewarm power demand. 

Vedanta's 600 Mw power unit in Odisha dedicated to the state grid, operated at a lower PLF of 50 per cent in the period on account of power evacuation constraints. The plant ran at comparatively higher PLF—60 per cent in the comparable period of last fiscal and 74 per cent in the April-June period of this fiscal.

Likewise, the 600 Mw (2x300) Balco IPP units operated a PLF of 54 per cent in Q2 as power demand remained tepid.

The Malco power plant operated at barely 20 per cent PLF in the period under review due to lower offtake from Telengana State Electricity Board (TSEB). The plant's PLF stood at 61 per cent in the corresponding period of last fiscal and 44 per cent in Q1 of this fiscal. Vedanta has entered into a contract with TSEB for power supply from June 2016 to May 2017, following the completion of the sales contract with the Tamil Nadu Electricity Board.

Total power sales in Q2 were higher due to to the commissioning of additional units at Talwandi Sabo Power Ltd (TSPL), a wholly owned Vedanta subsidiary and Balco over the last year. Power sales from TSPL were significantly higher during the quarter.

The third 660 Mw unit at TSPL achieved Commercial Operation Date (COD) on August 24 this year and was capitalized on 1st September 2016. In Q2 FY2017, all three units operated at an availability of 77 per cent (considering the third unit from September 1), higher quarter-on-quarter mainly due to a statutory shutdown at one of the units, in the previous quarter.

"The power purchase agreement with Punjab compensates us based on the availability of the plant," Vedanta said in its production statement.

Total power sales by Vedanta were up 11.4 per cent in Q2, moving up from 2718 million units to 3030 million units.