Dept Seeks Gridco Nod on Sterlite Energy for Vedanta…

 

The Energy Department has sought the views of Gridco, the power trading utility of the State, on the issue of granting permission to the Vedanta Aluminium and Power to use power from Sterlite Energy.

This is in response to Vedanta Group’s request to the State Government for using 600 MW power from Sterlite Energy (a subsidiary of Vedanta Group) to run its smelter plant at Jharsuguda.

Vedanta Aluminium Limited has set up a 1.1 million tonne per annum (mtpa) new aluminium smelter at Jharsuguda as Special Economic Zone (SEZ), is lying idle presently for want of power.

“We are providing 600 MW to Gridco for the last three years. Since Odisha is now power surplus State, we may be allowed to use this power for running the new smelter plant to full capacity,” said Vedanta Aluminium and Power business head SK Roongta in a recent letter to Chief Secretary JK Mohapatra.

The commissioning of the new smelter plant will generate substantial employment opportunity and additional revenue for the State Government, he said.

Sterlite Energy, an independent power producer (IPP), runs 2,400 MW (4x600 MW) thermal power station at Jharsuguda. One unit of the power station is dedicated to the State.

Stating that the new smelter has been put up as per the 2006 recommendation of the State Government pursuant to central SEZ Act, 2005,

the company had recently sought extension of SEZ benefits for its aluminium smelter project at Jharsuguda.

The company has requested exemptions which were taken into account at the time of setting up of SEZ plant such as exemption from state taxes including entry tax, VAT, electricity duty be made applicable from the date of recommendation for the SEZ.

The company has also requested the State Government to declare the plant in the SEZ as a deemed distribution licensee as per the provisions of the Electricity Act 2003 and referred the matter to the Odisha Electricity Regulatory Commission (OERC).

Chairman of the Vedanta Group Anil Agarwal met Chief Minister Naveen Patnaik on November 26 last year to discuss the issue along with the long term bauxite linkage to the company.

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OHPC surpasses annual power generation target…

 

Odisha Hydro Power Corporation (OHPC), which was mandated by Odisha Electricity Regulatory Commission (OERC) to produce 5,676 million unit (MU) hydropower in the current fiscal, has surpassed its annual target and aims to generate 1,000 MU more by the end of March 2014.

“As of 14 January, we have produced 6,004 MU, higher than our target of 5,676 MU. Considering current reservoir positions, we can generate nearly 500 MU more by end of March,” said Santosh Sahu, director (finance) of the state government undertaking.

The rise in power generation was supported by low pressure-induced rains that lashed the southern part of the state towards the fag end of monsoon season that ended in October 2013. As a result, major reservoirs, which are located at Koraput , Malkanagiri and south of Bhawanipatna districts, have ample water to generate record power generation.

Major reservoirs of the state, which supply water to these plants are near their highest level, OHPC website updates showed. Balimela reservoir currently has water at 1508 feet, out of its maximum carrying capacity at 1516 feet, while Mukhiguda reservoir contains 641.8 feet high water, against carrying capacity of 642 feet. Bariniput reservoir, which has a maximum capacity of 858 feet , now has 855.6 feet water in it.

Total hydro power generation, which was around 1200 Mw per day in November however, has come down to 500 Mw average per day as water is being used for irrigation of winter crops from the reservoirs.

Largest power plant Balimela generated about 165 Mw electricity , while Upper Indravati produced 114 Mw power on an average by the second week of January. Hydro power generation at Upper Kolab power station was around 70 Mw by mid-January, data showed.
Balimela has the capacity to produce 510 Mw, Upper Indravati 600 Mw and Kolab can produce 320 Mw electricity.

OHPC said higher generation means more profit for the company, which could jump by as much as 50% to Rs 75 crore.

“During 2012-13, our profit after tax (PAT) was Rs 47 crore. This year we are expecting Rs 75 crore due to higher power generation,” said Sahu.

As per OERC guidelines and agreement signed with Gridco, the hydro power producer has to sell additional power generation at half of the agreed rate. For 2012-13, rate of average power sold by OHPC has been fixed at 70 paise per unit upto sell of 5676 Mu power. Any power sold beyond the targeted generation has to be sold at not more than 35 paise.

The Indian Meteorological Department (IMD) said while worst-hit Ganjam received 740 mm rainfall during and after the tropical cyclone Phailin, causing flood situation in the district, compared with 111 mm normal rainfall, Odisha received 277% higher rainfall than normal in October.

Odisha needs about 3,000 Mw power in summer season. Hydro power production, which is at 500 Mw now, can rise to 1000 Mw in summer, the state-run power generator said. “The current water availability will be sufficient for summer demand of 2014,” said the OHPC official.

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Odisha rejects CEA projection of power shortfall by 2017…

 

The Odisha government has rejected the projection of Central Electricity Authority (CEA) on power availability in the state. The CEA has predicted that Odisha will face power deficit in the 12th Five Year Plan that ends in 2017 in its 18th Electric Power Survey (EPS) report.

For the current fiscal, the EPS said that the peak demand of the state will be around 4,686 Mw. However, the state government pegs it at a much lower level.

"For the 2013-14, OERC (Odisha Electricity Regulatory Commission) has approved a peak demand of 3,993 Mw, against the forecast of 4,686 Mw made in the 18th EPS. Therefore, the demand forecast presented in the 18th EPS cannot be taken as absolutely correct," said state Energy department in its observation on the survey report.

The CEA had earlier projected that Odisha's power requirement in 2013-14 will be 4,686 Mw while availability will overshoot the demand at 6,356 Mw. However, due to delay in the commissioning of several power projects caused by land acquisition and coal linkage issues, concerns were raised that the state would be power deficit in the current and subsequent years till the end of 12 Five Year Plan period.

Out of 29 Independent Power Producers (IPPs), who have signed agreements with the state to produce thermal power with a combined generation capacity of 37,000 Mw, only three have completed construction of their plant within the agreed timeline, while all others have missed their deadline. These agreements were signed in 2006 and 2009 with a commitment that the plants would be ready by three years from the date of agreements.

As per the survey projection, peak power demand in the state would be in the range of 4,994 Mw, 5,322 Mw and 5,672 Mw for 2014-15, 2015-16 and 2016-17 respectively. But the state said, the projections are not realistic.

"Power availability in the state during the 12th Plan shall be adequate in comparison to the demand forecast. Further, availability from CGPs (captive generating plants) and renewable energy sources and opportunity to procure power through bilateral trading and power exchanges have not been considered in the availability of peak power. Therefore, the demand in the state can be comfortably met during the 12th Plan," the Energy department said.

Officials in Gridco said, while average demand of the state is around 2500 Mw in winter season and 2700 Mw in summer, it is getting supplies of around 2800 Mw from various thermal power stations, hydro power generators, captive power producers and its share out of Central power pool. The sources said, Odisha would be surplus in 2016-17 by around 500 Mw, when at least five new IPPs would become operational. As per the agreement with these IPPs, Odisha will get at least 14 per cent of their total production.

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