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AP loses INR 250 crore on power purchases - Report

Steel News - Published on Thu, 20 Oct 2011

Deccan Chronicle reported that the power crisis in Andhra Pradesh has resulted in sharp escalation of power exchange rate in the country, as the power deficit in AP has spilled over to the other states. The rates have almost doubled from last summer from INR 4 per unit to INR 8 currently and have increased by 25% to 30% compared to last year.

This has resulted in the state losing an estimated INR 250 crore on power purchases from other states, Central generating stations and gas power stations. This is a direct spillover effect of the continuing power crisis in the state and a spiraling effect of the Singareni Collieries strike on other states which were directly dependent on the coal supply. With states like Maharashtra, Rajasthan and Tamil Nadu too plunged into power crisis, the increased power exchange rate is bound to add on a huge burden on the discom.

Mr A Sudhakar Rao president of APSEB Engineers Association said that \"There is a huge power demand within the state and the ongoing crisis has had a spillover effect on the power exchange rates which are normally around INR 4. It is now hovering around INR 8 per unit and may touch INR 10 per unit, in the near future.\"

The state power utilities have already spent INR 500 crore on power purchase from other states due to huge gap in demand and supply.

A senior official said that \"The increased exchange rate will make things worse for the power utilities in the state as even other states will now be competing for power purchase as many of them are facing shortages now.\"

(Sourced from
Posted By : admin on Thu, 20 Oct 2011
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