Government proposes surrendering Delhi’s power share from Jhajjar

The demand by distribution companies to surrender power from expensive gas-based plants in order to cut down on growing costs was discussed in a meeting held by the Delhi government’s power department recently. The government has now proposed surrendering Delhi’s entire share in the Aravali super-thermal power station in Jhajjar for a one-year period with effect from June 1, 2014. The proposal has been sent to the ministry of power and a reply is awaited.

Delhi has a 50% share in the 1,500 MW Aravali power plant, with Haryana being the other recipient. But discoms have been shying away from buying power from this plant because of rising costs due to gas price. “Discoms requested to surrender their share from Aravali till March 31, 2019, keeping in view the high cost of power from this station because this will have a direct impact on consumers by approximately 10% increase in tariff,” said a source.

Tata Power has also petitioned DERC for surrendering of power from central gas-based plants like Anta, Auriya and Dadri. The discom said its share is only 60-70 MW. The issue also came up in the meeting. “The representatives of Tata Power informed that such stations supply costlier power and variable cost of power from these stations comes to Rs 5.61. It may be prudent that power from these stations be surrendered as otherwise it would increase the tariff by about 5% which would be a burden on consumers,” said the petition by the discom. Tata Power also said it has made sufficient arrangements in Delhi for summers and there would be no shortfall due to this proposed surrender.

However, the government felt that long term surrender of power from Anta, Auraiya and Dadri does not seem justified. It would, however, discuss short-term surrender with DERC before sending a recommendation to the ministry of power. Delhi discoms also sought to surrender their power from Bawana plant but the issue is still being discussed in DERC. The government chose to wait for that outcome before processing this proposal.

Source: Times of India


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