Excess power with CPPs to be connected to the Grid: Patel

Ahmedabad, June 18 (UNI) Gujarat Energy Minister Saurabh Patel today said government was considering utilisation of excess power available with companies having captive power production of more than one MW by investing own money to connect them to the grid.

The Minister was speaking in an interactive session organised by the Confederation of Indian Industry (CII) to discuss and deliberate on prevailing power situation, opportunities and scope for improvements in Gujarat.

He said the power situation in Gujarat would be stabilised after December this year.

He said the state has planned for additional 20,000 MW capacity to provide for future requirements utilising Gas, Coal, Lignite and Nuclear as a source of fuel in the State.

He, however, raised concern over additional burden on Gujarat because of subsidised supply of gas to Dabhol Power Project.

He said because of electricity duty, cost of power is definitely high but reminded that inspite of high cost on coal, freight and gas there was no increase in electricity tariff in the past seven years.

At present, the State electricity board is purchasing almost 300 MW power at a cost of over Rs 6 per kWh, he said.

He said State electricity board had successfully curtailed the transmission and distribution losses and had been brought down from 45 per cent in the last four years to 20 per cent at present.

CII-Gujarat Council Chairman Chetan Tamboli said that over the past few years Gujarat had improved on availability and quality of power compared to other neighbouring States.

CII Convenor B S Shantharaju commented that major reform process in energy sector had been undertaken in the State but there was scope for further improvement.

He said that electricity duty on Captive Generation has been raised from 20 paise kWh to 40 paise which should be brought down and excess capacity could be made use of to shorten the power deficit in Gujarat.

UNI