Punjab
is falling prey to countrywide trend of over dependence on private power
generation units. Experts point out that it is imposition of financial
restructuring plan (FRP) on states that is forcing them to introduce
privatization for reduction of Aggregate, Technical and Commercial
(AT&C) losses with input based distribution franchise.
Private sector companies have been successful in getting tariff revised from CERC despite signing of Memorandum of Understanding (MoU) with state utilities for long-term supply contracts. The concept of achieving low tariffs through competitive bidding in Ultra Mega Power Projects (UMPP) has been completely defeated by changes in terms of reference after award of contract by giving various concessions to successful bidders.
"With the thrust on capacity addition in private sector, several states are now in a condition of surplus power during part or most of the year. This is resulting in a situation whereby thermal power stations are ordered to be backed down or shut down so as to enable these private sector thermal stations to operate at optimum or full load," said V K Gupta, secretary finance, Northern India Power Engineers Federation.
Central electricity authority, which played a major role in power development of the country, has been completely sidelined. Now, there is no central agency to look after coming of need-based generating station across the country. Thermal plants are being constructed without looking in to geographical needs of the country, rue exports of power generation.
A retired engineer from Punjab State Electricity Board said the plan to set up gas power stations too hasn't worked due to high cost of natural gas. There is need for priority allocation of gas to these stations and state gas power stations should be ensured at economical rates. Source TOI
Private sector companies have been successful in getting tariff revised from CERC despite signing of Memorandum of Understanding (MoU) with state utilities for long-term supply contracts. The concept of achieving low tariffs through competitive bidding in Ultra Mega Power Projects (UMPP) has been completely defeated by changes in terms of reference after award of contract by giving various concessions to successful bidders.
"With the thrust on capacity addition in private sector, several states are now in a condition of surplus power during part or most of the year. This is resulting in a situation whereby thermal power stations are ordered to be backed down or shut down so as to enable these private sector thermal stations to operate at optimum or full load," said V K Gupta, secretary finance, Northern India Power Engineers Federation.
Central electricity authority, which played a major role in power development of the country, has been completely sidelined. Now, there is no central agency to look after coming of need-based generating station across the country. Thermal plants are being constructed without looking in to geographical needs of the country, rue exports of power generation.
A retired engineer from Punjab State Electricity Board said the plan to set up gas power stations too hasn't worked due to high cost of natural gas. There is need for priority allocation of gas to these stations and state gas power stations should be ensured at economical rates. Source TOI
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