The Union Ministry of Power (MoP) has conceded the Andhra Pradesh government’s request to surrender 125 MW of thermal power allocated to the distribution companies (Discoms) by the NTPC for bundling with the solar energy under the National Solar Mission (NSM).
With this, the Discoms will be saving ₹150 crore per annum on fixed costs, according to an official release.
The power was allocated to the Discoms on July 5, 2017, from the coal-based stations of the NTPC. On receiving a communication from the MoP, the Central Electricity Authority gave its consent.
The State’s Energy Department welcomed the decision, and said it would help in minimising the power procurement costs and reducing unwanted financial burden on the Discoms.
Energy Secretary N. Srikant thanked the secretary of MoP, Sanjiv Nandan Sahai, for approving the government’s proposal.
He stated the government was exploring ways to reduce the power purchase costs and accorded high priority to cost-effective power.
The measures being taken for the last one year for reviving and strengthening the power utilities, mainly by procuring power at cheaper rate, were yielding the desired result, he said.
With spot purchase of power at an average price of ₹1.63 to ₹2.80 per unit during March and April of the current year, the power utilities reduced the financial burden on Discoms to a large extent. The government also saved around ₹180 crore in coal tenders, Mr. Srikant added.