Frame policy for power allocation from UMPPs : WRPC

Raipur, Mar 12 (UNI) Western Region Power Committee (WRPC) has demanded evolving policy guidelines for allocation of power from Ultra Mega Power Project (UMPP) on the lines of 'Gadgil formula' for allotment of power from central sector power stations to the beneficiaries.

WRPC chairman Rajib Ranjan, who is also chairman of Chhattisgarh State Electricity Board (CSEB), told newsmen that the committee would meet in Mumbai on March 20 to discuss about the matter.

Claiming that any failure to correct the ''basic flaws'' in the policy pertaining to UMPPs and associated transmission corrrdors would put an investement of about Rs 1680 billion at stake, he said the allotment of power from the proposed UMPPs to various state utilities has been made in most arbitrary manner, violating the technical and commercial norms.

Citing an example, he said, the power from Sassan UMPP in Madhya Pradesh, under Western region, has not been allocated to Chhattisgarh or Maharashtra, which are situated in Western region.

Maharashtra, instead, has been allotted power from Krishnapatanam and other UMPPs situated in Southern region. Allocation to various state utilities has been made from UMPPs located in Andhra Pradesh, Tamilnadu and Karnataka.

Mr Ranjan said this has necessitated installation of long distance power transmission network all along the route from Tamilnadu to Punjab, Haryana and Jammu&Kashmir. Such investment on transmission has not only put avoidable burden on the state exchequer but has resulted in increase of transmission losses and transmission cost, making power more costly to end users.

Pointing out that the principle of setting up of power station either on the basis of transport of fuel or on the basis of transport of power has not been followed, the WRPC chairman said UMPPs proposed to be set up in the southern coastal area based on imported fuel would include cost of transportation of fuel and cost of transport of power as well. As a result, power generat ed at these UMPPs would be available at higher cost than other UMPPs based on domestic fuel availability located at pit head.

Mr Ranjan said northern region was one of t he intensive power consumption region where no UMPPs has been set up. Western region, specially Maharashtra, where the deficit was the highest needed installation of UMPP on priority in the first phase.

The WRPC chairman pointed out that eight UMPPs were to be set up in the country. Total installed capacity of these UMPPs would be 32,000 MW and it would require an investment of Rs 1280 billion, he said adding that the associated transmission system would also require an investment of Rs 400 billion.

He claimed that such a huge investment in power sector would remain ineffective, if proper care in location of UMPPs and allotment to various utilities was not made properly based on the factors which contribut ed to the efficiency and economy of the project.

UNI JJ 1852