Tag: electricity

Electricity may get costlier as states demand higher royalty on coal

11/08/2016 12:13

The State Government of Chattisgarh’s request for a revision in royalty rates on coal to 30 per cent will push up the cost of electricity by 7 per cent or 10-12paisa/kWh, estimates India Ratings and Research (Ind-Ra), a leading rating agency.

According to Ind-Ra report, the government has constituted a study group to consider the revision in the royalty rates based on the request from the State Government of Chattisgarh for a royalty hike to 30 per cent from the existing 14 per cent ad-valorem.

Ind-Ra believes the royalty hike looks quite steep at 30 Ind-Ra, and if accepted, it will lead to coal attracting the highest ad-valorem duty compared to all other minerals.

Since January 2015, coal consumers have been hit by rising prices due to the imposition of DMF and NMET (effective January 2015) taking the effective royalty rate up to 18.48 Ind-Ra from 14 Ind-Ra.

If the revised royalty rates were to be accepted as proposed by Chhattisgarh, the variable cost of generation can increase by another 7 Ind-Ra. On the positive side, coal linkage rationalisation for companies has led to a decline in the transportation costs thus easing some impact.

Industrial power rates are a critical pre-investment consideration for manufacturers and given that bulk of the coal based capacity in India is on a cost pass-through basis, the ultimate impact of such hikes is passed on to the consumers. Such regular hikes in one form or the other is not a healthy sign for the thermal power generators. Ind-Ra believes that as alternate sources of power namely solar see further reduction in tariffs, the competition between thermal and solar will intensify, with a high probability of solar winning.


India can achieve 1.65 bn units of electricity in 2017: Goyal

08/07/2016 15:15

The country can achieve as high as 50 per cent growth in electricity production up to 1.65 trillion units next year, Power Minister Piyush Goyal said.

“We need to double our power production. Given the infrastructure and generating capacity we have today…We have the ability to double our power production. If tomorrow, we need to add 50 per cent power to our system I am ready for that. We are making about 1.1 trillion units of electricity annually now …We can go up to 1.65 next year,” Power, Coal and Mines Minister Goyal said at INFOCOM 2016.

The minister termed power shortages cited by the states as “technical” arising out of mismanagement.

“Very often states don’t buy and show shortage…There is a mismatch between availability of power and capacity of states to purchase and distribute to last mile connectivity.,” he said.

The minister said there was surplus production of coal now unlike in the past when two-third of India’s power plants were left with only critical coal stocks.

“We have brought in enough coal into the system. Today in the entire country not one power plant has critical coal stock against 2/3rd of the when I became the Minister… As a nation for 55 days if not a single kilo of coal is produced you will have power,” he said.

The minister said Rs 1.11 lakh crore would be pumped in for technological upgradation of power infrastructure through various schemes for rural and urban India.

He added that the government was trying to ensure 24×7 power supply to each household by 2019, three years ahead of the target. Prime Minister Narendra Modi had announced providing power to the last household by 2022.

Delhi’s power demand breaks record, rises to 6044 mw

Delhi’s power demand breaks record, rises to 6044 mw

20/05/2016 11:16

Delhi’s power demand has broke all previous records, breaching the 6,000 MW mark for the first time, even as residents across several areas of the megapolis sweated out owing to outages in the midst of a tormenting heat wave.

The State Load Despatch Centre recorded the maximum power load of 6,044 MW at 3.36 pm, earlier at 2.34 pm the electricity demand peaked at 6,011 MW. As compared to last year, the rise totals to an increase of over 20 per cent.

The previous record was logged on July 11, 2014 when consumption had touched 5,925 MW. Authorities urged residents to stop using non-important power guzzling appliances during peak hours.

The state-run Delhi Transco Limited (DTL) said demand of power has gone unpredictably high in the last few days and stated that non-payment of dues by BRPL and BYPL was hampering operations and maintenance activities.

Due to a snag with DTL’s Bamnauli-Pappakalan 220 KV transmission line for a couple of hours, power supply in parts of West Delhi, including Dwarka and Uttam Nagar was impacted, power officials said.

Although DTL put the onus on the discoms saying it is getting its legitimate dues (over Rs.2,000 crores) which have been duly approved by Delhi Electricity Regulatory Commission.