Vedanta supplies 200 MW of electricity to Orissa

April 30, 2010 - PRLog -- Vedanta has rescued Orissa currently facing power shortage by supplying 200 MW [547 million units of electricity] to the state grid at an average rate of Rs.3.60 per unit as against the open market average cost of Rs.4.34 per unit and over Rs 9 per unit at spot market due to current demand- supply mismatch.

Incidentally, the contribution of Vedanta’s power plant at Jharsuguda to the state grid accounts for 14% of the state’s demand. “This has also facilitated direct procurement of power by the State and reduced structured power cuts, providing relief to the ‘aam aadmi’ in Orissa, in this intense heat of summer”, a company spokesperson here told “The ET”.

The Company has commissioned nine units of 135 MW each totaling about 1215 MW captive power plant while it targets to commission one of the four units of 600 MW Independent Power Plant each by end September, he added saying that the state has already started reaping the benefits from partial power generation.

“By supplying electricity at a reduced rate, it has stood firmly behind the state government as a responsible corporate partner to supplement its efforts to minimize power cuts in the State”, he remarked.

The present actual peak demand of the state is 2700 MW against the installed capacity of 4081 MW from all sources. Rain God once again has played the spoiler’s role as the state is getting hydro power of only 650 MW against the generation capacity of 2142 MW. Similarly, it gets about 1000 MW from central allocation against committed 1059 MW and 750 MW thermal power from the state against 880 MW, according to Grid Corporation of Orissa chairman cum managing director, C J Venugopal.

Interestingly, the state has created a record of sort by signing up MoUs with 23 Independent Power Producers [IPPs] with an installed capacity of a whopping 50,000 MW. But not a single power plant has seen the light of the day.

The State Government, on April 8 signed memoranda of understanding with five private firms for setting up independent thermal power projects (IPPs) to produce 4,800 megawatts power at an estimated cost of Rs 23,203.52 crore.

What is worse is the fact that the number of consumers have increased from 16.94 lakh in FY 2000 to 25.89 lakh in FY08, resulting in an increase of almost 53%, whereas supply side expansions since the decade has been almost nonexistent. With further addition of consumers under the Biju Gram Jyoti Yojna (BGJY) and Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) in the next 2 to 3 years, the demand supply balance is expected to be grossly affected and rendered unsustainable

The state is not tapping hydro-power keeping the farmer’s requirement in mind. “We have not been uitlising hydro sources as the mercury goes up and farmers would require water for irrigation purpose for Rabi crop”, Mr Venugopal told “The ET”. Gridco, however, struck a deal with other states by evacuating power as it is a win-win situation for all states. “Once we have surplus power in post monsoon period, we will give them back,” he added.

Source: Economic Times