GUVNL aims to sell 200 MW surplus power this summer

Power to be sold on 'take or pay' liability basis.

Apex electricity company of the state, Gujarat Urja Vikas Nigam Ltd (GUVNL) has initiated the process of selling surplus power with it.

The company has invited offers from distribution licensees or traders for sale of 200 MW or more round the clock power by the company on firm basis.

Reduced industrial activities following ongoing recession have led to fall in demand of power. As a result, GUVNL has surplus power during summer season, which otherwise sees rise in power demand on both the domestic and industrial fronts. "Usually, the company becomes power surplus in some parts of winter and monsoon", said GUVNL officials.

Industry players also believe that now around 1500MW of wind power comes to power grid, which, might have led to power surplus situation even in summer.

In order to finalise the contract for sale of power, GUVNL has asked the interested bidders to send the details of the offer on or before 6 April 2009.

The power generation, distribution and transmission company intends to sell surplus power on "take or pay" basis. Explaining the "take or pay" format, GUVNL officials informed that in case the traders fails to offtake 80 per cent of contracted quantum of power, the trader will have to pay Rs. 2 per unit for the quantum of power that falls short of 80 per cent of contracted amount of power.

Similarly, if GUVNL fails supply 80 per cent of contracted power, it will pay to the trader Rs. 2 per unit for the for the quantity that falls short of 80 per cent of contracted quantum.

This means that if GUVNL supplies only 70 per cent power out of 80 per cent contracted amount of power, the company will have to pay Rs. 2 per unit for the "not supplied" 10 per cent power. The same will be the case for trader, who will have to pay to GUVNL if it fails offtake 80 per cent of contracted power.

It may be mentioned here that GUVNL has the discretion in the allotment and allocation of the quantum of power and time slots for supply of power.