NTPC's power generation cost drops 39.5 paise to below Rs 2 per unit

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The state-owned NTPC has managed to bring down its cost of electricity generation by an average 39.5 paise while for the Mauda project, it was a decline of Rs 1.65 per unit, mainly because of improvement in coal quality and supply.

Data available with NTPC showed that the overall cost of power generation has come down to below Rs 2 last fiscal, driven by the improved quality of coal and its supplies, a power ministry official said.

The overall cost of power generation of the company has come down by 39.5 paise. It does not include taxes and cess primarily imposed to finance protection of the environment, the official explained.

According to the data, the overall cost of power production for the company stood at Rs 2.01 per unit in 2014- 15, which has declined to Rs 1.94 in April-February of 2016- 17.

Elaborating, he said the actual reduction was 6.4 paise per unit, but if increased levies and charges are taken into account, the total drop in power output cost translates into 39.5 paise.

The data further showed that NTPC's Mauda project registered an overall fall in the cost of power generation at Rs 1.65 per unit, taking into account the impact of a revision of levies and charges.

The official explained that new projects and plants with the high dependence on imported coal have benefited the most.

The other plants which gained due to improved quality and supplies of coal are Barh Stage-II (Rs 1.24 per unit), Badarpur (Rs 1.16) and Tanda (93.6 paise).

The official said the NTPC plants represent a quarter of thermal power generation projects in the country and indicate an encouraging trend in power generation cost.