Delhi govt proposes to surrender 2255 MW electricity from CPSU

In order to reduce the power rate in the city, Delhi government has proposed to surrender 2,255 MW electricity it buys at a high rate from Central Public Sector Undertakings (CPSUs).
According to a senior government official, the average power purchase cost of Delhi is high in comparison to other states, resulting in the levy of higher electricity tariff.
"We have requested Central government that electricity in Delhi is being given at a very high price. So we want to surrender power we get from CPSUs.
"For example NTPC supply power to other states but rate for Delhi is almost double. We (Delhi) are buying electricity at Rs 5 to Rs 8 from CPSUs," Delhi Power Minister Satyendra Jain said when he went to meet Union Power Minister Piyush Goyal yesterday.

Delhi government has proposed to surrender 2,255 MW units and claims that this will cut power tariff in Delhi.
"We have shown our will to surrender 2,255 MW and by doing this we will be able to reduce the prices of electricity. At present we are buying electricity at Rs 5-8 from NTPC but we can buy it half the price. Industries in Delhi are paying as high as Rs 10 per unit.

"Reason for selling expensive power to Delhi is still not clear. Previous government made long term power purchasing agreement with Central government which is not logical," Jain said.

Jain confirmed that there will be no shortage of electricity if Delhi surrenders their share of electricity.
"There will be no shortage of supply. When we have an option to buy electricity at cheaper rate then why should we increase burden on the city by buying expensive power. Why should people of Delhi suffer? Delhi is paying double the price then Gujarat for same electricity," Jain explained.
Power minister highlighted that government has also taken the consent of all the three discoms for surrendering allocation of power from Central units.
During the meeting even Central government assured to help Delhi in bringing down power rates.

"We can buy power at Rs 2.5 to 3 reducing power rates in Delhi. Power rate can come down if it is implemented. We have also given option to surrender in phase manner," he said.
Delhi government in its letter to central government wrote that Delhi being a land locked city with neither coal reserve nor hydel potential is largely dependent upon CPSUs as major source of its power supply.