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The state will have to bear the burden of costly power for some more time, as the Ministry of Power has not yet accepted the Chief Minister’s request to surrender the 693 MW power coming from Aravali Power Company Private Limited (APCPL).

Sources said as per the estimates of the state power department, during the current financial year, the state will have to purchase power above Rs 10.62 per unit from the APCPL till it gets permission to surrender power. The authorities have signed a long-term power purchase agreement with the APCPL and are bound to purchase power of a fixed amount till they get permission to surrender.

During 2015-16, when Haryana was in a comfortable position and had no need to utilise the full power purchase agreement, it purchased only 1,052.18 Million Units (MUs). But since the authorities had signed the agreement for the purchase of the fixed amount, it increased the per unit cost of power to Rs 11.54.

“Since the power of this plant is very expensive and falls low in the merit order, it is not being scheduled. The state power companies, however, have to pay the fixed cost amounting to Rs 815 crore per year. This is resulting in burden on the state consumers,” says a letter dated April 21, 2016, written by Chief Minister Manohar Lal Khattar to the Minister of State (Power). The CM has also sought power minister’s intervention for expediting the surrender of power from the APCPL plant and its allocation to other state.

The power purchase estimates of the current year shows that the state is likely to purchase 29,508.02 MUs from sources located inside of the state, while 25,775.25 MUs are likely to come from inter-state arrangements.

“We have written to the ministry for permission to allow the surrender of power for a year. The ministry will have to find another power purchaser for a year before allowing us to surrender power. We are forced to do so, as the demand has not risen as per the availability of power,” said Nitin Yadav, Managing Director, Uttar Haryana Bijli Vitran Nigam.

Source: tribuneindia