Captive power is expensive but states can cushion relief: Shinde

By Staff
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Google Oneindia News

New Delhi, Aug 24 (UNI) Union Power Minister Sushilkumar Shinde today admitted in the Lok Sabha that power produced by captive plants was indeed expensive and said state governments can work out a mechanism to provide relief to users like small and cottage industry by not levying wheeling charges as was being done in Maharasthra.

Replying to a question by Mr K S Rao (Congress) and Mr Braja Kishore Tripathy (BJD), the Minister, in a written reply, said three independent power producers in Andhra Pradesh, who are ready with their plants, can not be forced to run gas-based plants with expensive naptha because in that event package of incentives and concessions offered by the state government would start rolling the day these plants become operational.

He said since production and distribution of power by captive plants had been taken out of regulatory mechanism, the government estimate that about 12,000 MW might be added by captive power plants during the 11th plan period. As many as 2,434 captive power plants in the country had an aggregate capacity of about 21,468 MW as on March 31, 2006, he added.

Mr Shinde said captive power producers were free to supply surplus to the national grid or a state grid or directly to a consumer in view of the amendment in the Electricity Act, which became effective from June 15 this year.

When the lone MP from Mizoram, Mr Vanlalzawma sought to know the fate of the 60 MW plant in the state where work was stopped after spending Rs 200 crores, Mr Shinde admitted it was lying idle for want of funds from donor ministries.

UNI

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