Power News We love to talk!

SEP 27 2016

Industrial tariffs need to come down: NTPC chief

  • Economic Times, ET Bureau / Hyderabad
  • Created: Tue 27th SEP 2016

A power-producing company depends on the inter-linked infrastructure — transmission networks, health of distribution utilities, and competitive electricity rates — for its success, said Gurdeep Singh, Chairman and Managing Director, NTPC Ltd.

To make the electricity industry healthy, the regulators need to correct the tariff structure, he told BusinessLine in an interview. “Tariff for the industrial sector needs to come down; otherwise, Discoms will not come out of the stress that they are in. Industries need to be supplied electricity at some kind of competitive rates, which will result in higher demand,” he added.

Currently, the problem is that the peak industrial tariff is very high, he pointed out. According to estimates, industrial tariff currently averages Rs. 7.5-8 a unit, while the tariff for residential units is around Rs. 3.5-4 a unit. “It’s a question of volumes,” he said. On the differences between generators and Discoms, Singh stressed that Discoms are essential to the power company’s existence.

As regards NTPC’s efforts to meet environment commitments as most of its plants are coal-based, Singh said: “We are focussing more on the renewable side. Along with the coal-based generation, we are investing in renewables, and mainly solar.” The objective is 10,000 MW of renewable capacity by 2022.

Tags

Regulators Coal Tariff NTPC Ltd Power Electricity Solar

Related News

  • Diesel price hike could fanpower costs for commercial space  Read more
  • Energy PSUs optimise costs through bulk goods & services purchase  Read more
  • Coal India to leverage mining expertise for diversification  Read more
  • HSBC pledges $100 bn climate financing, to discontinue funding coal-fired plants  Read more
  • GoM to take up draft coal regulator bill on Dec 18  Read more
  • Gujarat farmer paves way for a new, climate-smart cash crop sunshine  Read more
  • Budget 2015: Piyush Goyal asks FM to come out with innovative models for renewable energy projects  Read more
  • An eco-friendly and unique project  Read more
  • Heavy rain disrupts hydro power generation in North; many States face outages  Read more
  • BHEL bags order from Railways for solar power plant  Read more