Power News We love to talk!

JUN 04 2012

AP discoms find it tough to procure additional power

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 04th JUN 2012

In spite of higher purchase rates offered by AP distribution companies, they have managed to secure commitment for about 750 MW against 2,000 MW targeted.

This means that consumers are in for tough times as the demand is likely to be high and supply truncated.

Anticipating the power shortages, AP discoms had floated tenders for 2,000 MW (48 million units) of power during June 2012 to May 2013. The total shortage is projected to hit 3,900 MW during the peak season.

According to State Energy Co-ordination Cell, in the tender process the power generators in AP quoted up to Rs 6.79 per unit for a capacity of 350 MW (8.4 MU).

And those outside the state quoted between Rs 5.75 to Rs 7.39 per unit to supply 1,125 MW (27 MU).

After several rounds of negotiations, including on May 29, the AP-based power generators agreed to supply at Rs 5 per unit for about 350 MW.

Power producers outside AP expressed their inability to reduce their price below Rs 5.50 per unit as they are using Indonesian coal whose prices have recently gone up due to local changes.


Indonesia Energy Power

Related News

  • Tata Sons may shut oil production arm Petrodyne in business revamp  Read more
  • RIL warns on US shale slowdown, refining lifts profit  Read more
  • Power co seeks funds prior to tariff increase in Maharashtra  Read more
  • Mahan forest area inviolate, says MoEF  Read more
  • Hydropower projects incur over Rs. 45,000-cr cost overrun  Read more
  • Cairn Energy files arbitration notice in Indian tax dispute  Read more
  • Wind energy developers in Rajasthan face losses as discoms curtail intake  Read more
  • APERC gives nod for procurement of 2,000 MW  Read more
  • India, China to fuel demand for natural resources, says Saudi energy minister  Read more
  • Coal crisis: NTPC plants have 2 days of stock left; govt steps in  Read more