Vedanta's power sales higher 7% on ramp-ups at TSPL, Balco

Vedanta's overall power sales were higher by seven per cent in FY17 on account of ramp-ups of its units- Talwandi Sabo Power Ltd (TSPL) and Balco. The third unit of TSPL was capitalised during the year, contributing to significantly higher power sales.

Total commercial power sales by Vedanta moved up from 12,121 units to 12,925 units.

For the quarter ended March 31, power sales were two per cent higher year-on-year (y-o-y) due to the commissioning of additional power capacities at TSPL and Balco over the last one year. Power sales from TSPL increased with all three units becoming operational this year.

In Q4, the three units operated at an availability of 85 per cent. The Power Purchase Agreement (PPA) with the Punjab State Power Corporation Ltd (PSPCL) compensated the company based on the availability of the plant.

The Jharsuguda 600MW power plant operated at a plant load factor (PLF) of 78 per cent in Q4 of 2016-17. "The 600 MW capacity (2x300MW) of the Balco IPP operated at a significantly higher PLF of 72 per cent in Q4 of 2016-17 (PLF of 55 per cent in Q3 of 2016-17), due to increased offtake under our PPAs", Vedanta stated in its production statement for 2016-17.

During Q4 of last fiscal, there were no external sales from the 1,800 MW Jharsuguda power plant due to a weak power market.

PLF at the MALCO power plant was at 23 per cent (PLF of 29 per cent in Q4 and 15 per cent in Q3), lower due to lower off-take by the Telangana State Electricity Board (TSEB). However, as per the contract entered into with TSEB, Vedanta is entitled to compensation at 20 per cent of the contracted rate for off-take below 85 per cent of the contractual quantity.