Post News Network
Bhubaneswar, Oct 21: In order to meet the challenges of power crisis, the state government has initiated measures to buy power from 24 captive power plants (CPP) functioning in the state.
The state-run Gridco has approached Orissa Electricity Regulatory Commission (OERC) seeking its permission to procure power from the CPPs by paying a higher price.
“We have filed a petition before the OERC seeking its permission to buy power from 24 CPPs. As the private captive power plants are demanding more price than the prevailing prices set by the Commission, we have urged the later to allow us to buy on power at a higher price,” Gridco director (commercial) PK Pradhan said.
The Gridco also asked the 24 CPPs to inform it about how much power they can provide, Pradhan said.
As per the present rate fixed by OERC, Gridco can procure electricity from CPPs at `2.75 per unit. However, the CPPs are demanding `3.20 per unit, sources said.
If the government procures power from the private plants at the existing rate, then it will have to bear an additional burden of over `300 crore till next June.
Similarly, the state has to bear an additional burden of around `400 crore if it has to buy power as per price demanded (`3.20 per unit), sources informed.
“If the government buys power from the CPPs, the additional burden can be made up by selling power when it becomes power surplus,” an official said, adding, otherwise the burden will be shifted to consumers during next tariff revision.
The state has been planning to buy power from 24 CPPs including Jindal Steel and Power Limited, Bhusan Steel, Aditya Alumina and Navbharat Steels among others.
Orissa, which has been a power surplus state for several years, is facing power crisis for a month due to deficit rainfall.