'Captive Power Plants can help achieve 9 pc GDP growth'

Ahmedabad, July 25 (UNI) The Captive Power Plants (CPPs), with their large surplus capacity, could play a vital role in achieving the targeted nine per cent GDP growth of the nation.

Speaking to mediapersons here today Mr V Raghuraman, Principal Advisor and Chief Co-ordinator of Energy, Environment and Natural Resources of Confederation of Indian Industry (CII) said with their capacity to supply nearly over 20,000 MW power to industrial and domestic users, CCPs could play a pivotal role in nation-building.

Mr Raghuraman said in the present scenario of rapid economic growth caused by reforms, most State governments were not capable of keeping pace with capacity addition to meet the power demand, hence, CPPs were allowed to generate electricity on regular basis to meet the unit's own demand and subsequently to sell surplus generation.

Thus, the industry and commerce in the States basically see CPPs as means to bring efficiency to their business and get equality and reliable power supply.

He said Gujarat's present GDP ratio of 12 per cent could go up if uninterrupted power supply was provided to industries and agriclutural sectors by the State government with purchase of surplus power from CPPs.

''CPP is a necessary option to remain competitive by bringing down power race and by circumventing erratic power supply and heavy power cuts,'' Mr Raghuraman said.

However, there are various concerns on Captive Power like Open Access charges, which has made selling of power to another State or directly to another consumer very difficult. Input Tax credit for fuel used for power generation, high rates of Electricity Duty on CPP, Parallel Operation Charges and others were also responsible for the same, Mr Raghuraman added.

UNI