Ntpc Bid To Recover Dues Backfires

National Thermal Power Corporation (NTPC) is trying to resume full generation from its eastern region power stations after the strategy of regulating power supplies to recover oustandings boomeranged.

It has announced relaxation of regulation to the Damodar Valley Corporation (DVC) and Gridco of Orissa, but both these companies have refused an immediate increase in their drawal, much to NTPC s embarrassment.

To make matters worse, although it has started generation from its 1,000 mw Talcher station to Assam , the Eastern Region Electricity Board (EREB) has made it clear that NTPC will have to bill for the power directly to Assam as EREB members will not take responsibility for exports outside the region.

 

NTPC, however, has its own compulsion to resume generation at Talcher.

The station was set up with foreign loans and if the performance guarantee tests cannot be completed by the end of the current financial year, the loans will lapse.

Besides, the equipment suppliers - ABB and BHEL - cannot be paid the remaining 10 per cent of their bills until the performance guarantee tests are over.

The regulation of generation at all three power stations at Farakka, Kahelgaon and Talcher has led to serious technical and commecial problems for NTPC.

Farakka, with a capacity of 1600 mw, is now running only two units with a 400 mw capacity while the 840 mw Kahelgaon station is unable to generate more than two of its four units due to the restriction imposed by NTPC itself.

The three-week regulation has failed to break the morale of NTPCs four eastern region power purchasers due to three reasons.

First, all the buyers have been able to increased their own generation by activating a number of generating units which had been lying idle to accommodate NTPC.

Second, DVC has refused to immediately increase its drawal of NTPC power as it needs time to convey the decision to raise supplies to its own high tension consumers. The Gridco is refusing to draw more power.

Third, Bihar which depends heavily on NTPC supplies, is yet to increase its letter of credit although it had earlier promised to do so by February 10.

West Bengal, which is the bitterest critic of the policy of regulation, has also proved that it can manage its system even with heavy restrictions on the drawal of NTPC power.

It is running five of the 210 mw units at its Kolaghat station, four of the five units at its Bandel station and three of the four units at its Sandaldih station.

Thus, even with a meagre Central sector assistance of 125 mw, West Bengal has managed to meet its entire peak power demand of 2,200 mw by raising its own generation by 350 mw.

NTPC is trying hard to quickly sign its direct supply agreement with Andhra Pradesh. Otherwise its generating plants will fail to materialise.