Vedanta's power sales fall 39% on weak demand, mishap at Talwandi Sabo unit

Talwandi Sabo plant was shut for 65 days during the quarter

Weak demand for power and poor offtake showed up in Vedanta's power sales in the April-June quarter. Power sales by Vedanta Ltd during this period stood at 1,838 million units, lower by 39 per cent year-on-year, as the company's Talwandi Sabo plant remained out of operations for most part of the quarter due to a fire incident in April. Vedanta had sold 3,010 million units in the corresponding period of previous fiscal. 

The Talwandi Sabo plant was shut for about 65 days during the period under review. It was restarted at the end of June and is now running at an availability of above 90 per cent. But, the availability of the plant was lower at 20 per cent in the Q1 of this fiscal compared to 85 per cent in the Q4 of 2016-17. Vedanta is targeting an average availability of over 70 per cent in this financial year. The power purchase agreement (PPA) with the Punjab State Electricity Board compensates the plant.

"Overall industrial power demand in the country is weak and so the power stations are operating at a lower load. Our offtake was affected due to a fire incident at the Talwandi Sabo plant. But, we expect our offtake to pick up in the coming quarters," an official at Vedanta Ltd said.

The 600 Mw Jharsuguda plant operated at a PLF (Plant Load Factor) of 47 per cent in the April-June quarter. Power sales from this unit plunged 37 per cent due to temporary coal shortage.

Vedanta's 100 Mw Malco power plant operated at a measly PLF of two per cent in Q1 of 2017-18. The plant has been put under care and maintenance effective from May 26 2017 due to low demand in Southern India. The plant has been selling commercial power for the last eight years. The 600 Mw Balco unit in Chhattisgarh owned by Vedanta operated a lower PLF of 68 per cent in April-June compared to 72 per cent in the Q4 of 2016-17.