Deliberate low generation by Reliance from Sasan

Deliberate low generation by Reliance from Sasan
Sunday May 10, 2015
Chandigarh

All India Power Engineers Federation (AIPEF) has alleged that Reliance has kept low generation deliberately in order to save coal so that it can be utilized in later years through a merchant plant at Chitrangi or elsewhere power would be sold at market rate.

AIPEF has released a white paper on deliberate poor performance of Sasan ultra mega power project causing loss of more than Rs. 3000 Crore to procurer states namely Madhya Pradesh, U.P., Punjab, Haryana, Rajasthan, Delhi and Uttarakhand. The federation has written a letter to Union Power Minister with copy to all chief ministers of seven procurer states and sought their intervention effectively so that power procurer states may not suffer further loss.
AIPEF has also demanded that an interstate monitoring group from procurer states should be deployed at Sasan to check the instances for deliberate low generation. Padamjit Singh Chief Patron AIPEF has suggested that Reliance be issued an ultimatum to improve generation from Sasan above 95 % failing which the coal allocation be reduced and given back to coal India Ltd. for State Sector Plants.

The white paper claims that that procurer states have lost 7647 million units due to operation of units at less than 95% capacity which is desired. The procurer states have lost Rs. 3059 Crore. Madhya Pradesh has lost Rs. 1147Crore, Punjab Rs. 382 Crore. , U.P. Rs. 382 Crore , Delhi Rs. 344 Crore , Haryana Rs. 344 Crore , Rajasthan Rs. 306 Crore and Uttarakhand Rs. 76 crore between Aug 2013 to 31 March 2015.
Share of MP is 37.5%, Punjab 15%, U.P. 12.5, Delhi 11.25, Rajasthan 10% and Uttarakhand 2.5% from Sasan at UMPP. As per power purchase agreement these states will get power from Sasan at levelised tariff of Rs. 119.6 per Unit and 70 paise per unit for first two years.
Reliance is not interested to supply power at low rate and is interested in utilizing coal for merchant plants and supplying power at Rs. 6 per unit as in case of Rosa Plant.
AIPEF has claimed that while other similar plants of NTPC are operating on 95% PLF, PLF of Sasan for 2013-14 is 58.30%, 2014 -15 is 66.81 thus causing heavy loss to states.
It may be mentioned that allocation of coal mines/blocks was given to Reliance to enable to supply power at low rate of 70 paise per unit for first two years. Coal reserves were given for Sasan and not for any other merchant plant.
AIPEF has demanded that all seven states should take stern action and impose penalty on Reliance power as the states which were entitled to this power at 70p/unit were deprived to the extent of 7647 million units and are forced to purchase power at higher rates from market.

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