Ntpc Power-Sharing Formula To Be Modified Soon

The Union power ministry will soon notify a formula for sharing power generated by three National Thermal Power Corporation (NTPC) power stations in the eastern region.

This will, for the first time, entitle a state from a different region to a firm allocation of NTPC power produced in one region.

Under this formula, Andhra Pradesh will be entitled to a round-the- clock flow of 150 mw of power from the eastern region. So far, states of one region had no right to power produced in other regions, though the surplus generated in one region was transferred to deficit regions.

NTPCs Talcher station will make available 75 mw while Kahelgaon station will offer 45 mw. The remaining 30 mw will come from Farakka station.

The new arrangement will come into effect when the AP State Electricity Board opens a revolving letter of credit for a sum equivalent to one months power tariff.

None of the power agencies of eastern region will have to surrender their share. AP will be given power from the unallocated portion of the three power stations capacity. The arrangement will remain in force for one year after which the situation will be reviewed.

At present, 15 per cent of the capacity of Farakka station (1600 mw) and Kahelgaon station (840 mw) which is equivalent to 360 mw remains unallocated. Talcher (500 mw) has 38 per cent (190 mw) of its capacity unallocated as West Bengal has declined to claim its share. Thus, the three NTPC stations have 550 mw of their installed capacity unallocated.

The general practice is to reserve the unallocated power for the regions power agencies to meet their additional requirements.

APSEB which had a 2-year agreement to import eastern regions surplus power was disconnected from the eastern grid on September 30, 1995 after it failed to clear the outstanding of Rs 30 crore.

The agreement ended on December 31 without power supply being resumed. There were several meetings between APSEB chairman J Parthasarathi, WBSEB chairman S R Shikdar and senior EREB officials. This was followed by a meeting of the Eastern Region Electricity Board where the power supply conditions were finalised.

Although there will be a separate power purchase agreement between NTPC and the Andhra Pradesh State Electricity Board (APSEB), flow of power will begin shortly. The power agencies of eastern region will buy power from NTPC and pass on the same to AP till the PPA is ready.

The power will be priced at Rs 2 a unit. If AP draws 150 mw round the clock, the monthly power bill for the 110 million units will be Rs 20 crore.

The significance of allocating specific quantum of power from each NTPC power station lies in the pricing of power.

In other words, the power agencies of eastern region will still have access to more than half of the unallocated power from NTPC units. And, they will enjoy more of the cheaper power.

APSEB chairman, Parthasarathi has promised to clear the Rs 30 crore of outstanding by March 31. The power was earlier priced at Rs 1.54 a unit.