HP: 800 MW of surplus power but no buyers

Himachal Pradesh is producing a surplus of power with no buyers lining up.

Written by Ashwani Sharma | Shimla | Published:June 20, 2012 12:01 am

Himachal Pradesh is producing a surplus of power with no buyers lining up. The situation has reached such a desperate point that the state is forced to sell its power for Rs 2.50 to Rs 3.50 per unit. Just two years ago,the state’s revenue from power was Rs 1,300 crore.

We were selling at Rs 7.50 per unit but that was only a temporary increase due to sudden demand from the distribution companies,” admits Principal secretary (Power) Deepak Sanan.

In addition to tourism,the state has looked towards power generation for its earnings.

The state is on its way to adding another 1,000 MW of power in next few months.

Earlier,the state used to tie-up its power rates with neighbouring states and private distribution companies in April — before the beginning of the peak generation time.

The situation has changed to an extent that no buyer comes forward and instead opts to buy on a daily basis offering current rates which frequently fluctuates.

“It’s a bad situation. Most states instead of buying power decide to impose prolong cuts on the consumers because they do not want to purchase power. Unless the Centre intervenes to regulate the situation,we are at loss,” Sanan told the The Indian Express.

“Last year,the state sold power in bulk at Rs 4.30 per unit to Uttar Pradesh,which has failed to pay about Rs 200 crore. I held talks with my counterpart in UP asking him to clear arrears of Rs 200 crores and buy more power but he expressed inability as the state does’nt have the money to buy additional power. They have rather decided to impose cuts.”

More Power

Himachal Pradesh ‘s installed power capacity now stands at 7,900 MW and another 1,000 MW will soon be added by commissioning of Chamera-III and Parbati-III project . The commissioning of 1,000 MW Karcham Wangtoo Project and 192 MW Allain Duhangan — both private sector projects — have made 12 per cent free power available to the state as royalty but earning of the state have gone down from Rs 1,300 crore to Rs 1,000 crore — a shortfall of Rs 300 crore — despite the state getting its share of 7.19 percent from Bhakra projects.

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