THE HIGH COST OF WRONG REFORM
Article Abstract:
Power tariffs rose to 250 paise per unit after the economic liberalisation process started in 1991 from 102 paise at the end of the Seventh Five Year Plan. The tariff is expected to go up further to 500 paise per unit by the end of the current plan due to the unrefined reform planning. The sector is at present severely affected by the serious shortage of peaking power in about four months in a year, transmission and distribution losses of around 45 percent, lack of transparency in information system, use of highly inefficient consumer equipment and extremely weak sub-transmission and distribution system. The output availability of power stations is only 65 percent and not 78 percent as claimed by the government. The Independent power projects (IPP) are designed to operate at a PLF of 68.5 percent and this is expected to come down to a 50 percent level at the end of the current five year plan, if the 40,000 mw of new installed capacity materialises. Then the cost of power at IPP station will increase to around Rs4 per unit. But not even 20,000 mw of the installed capacity is set to materialise as only 3,000 mw has been added in the first year of the plan period and the target set for the second year is 3,000 mw. The consumers will have to pay Rs7 per unit for the power generated from the new IPPs. (gsh)
Comment:
India: Tariff is expected to go up to 500 paise per unit by the end of the current plan due to the unrefined reform planning
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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PLAYING POWER FOOTSIE, THE PRIVATE SECTOR WAY
Article Abstract:
Chalais Holdings Ltd of the UK was given permission in November 1995 to set up a 300 mw thermal plant in Dharwad district. A new company called Wesco Power Generation Ltd was set up to implement the project. The location of the project was shifted to Hattimattur from Ranebennur due to objections from the Karnataka Pollution Control Board. The company again requested permission to shift the project to Shivapura-Konnur in Belgaum district and raise the capacity to 500 mw. The company was informed on July 15, 1998 by the Central Electricity Authority that techno- economic clearance for the project has not been given as its detailed project report had not been submitted before the cut-off date of December 31, 1997. (khr)
Comment:
Requests permission to shift proposed thermal power project to Shivapura-Konnur in Belgaum, India, & raise capacity to 500 mw
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
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