Latest news with #Gencos
Time of India
4 days ago
- Politics
- Time of India
Punjab minister contradicted, Union ministry says no proposal to set up 3 power units
Chandigarh: Contradicting Punjab power minister Harbhajan Singh's claim that it approved three 800-MW power units in Punjab, the Union ministry of power has clarified it had not received any such proposal. The clarification came in response to a query in the Lok Sabha by Congress MP Charanjit Singh Channi, who sought details regarding central govt's approval to three new thermal units of 800 MW each — two in Ropar and one at a new location. Responding to Channi's question, the ministry stated: "No such proposal has been received in the ministry of power." The rebuttal follows Harbhajan Singh's announcement on June 7, after the Conference of North Indian Power Ministers in Delhi, chaired by Union power minister Manohar Lal Khattar. The conference was attended by energy representatives from Punjab, Haryana, Himachal Pradesh, Chandigarh, Rajasthan, Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Ladakh, and Delhi. Harbhajan Singh claimed that the Centre approved the setting up of two additional plants, each of 800 MW capacity, at Ropar. Additionally, he claimed, approval was granted to setting up a new 800-MW power plant at another location to meet Punjab's growing electricity demand. Despite repeated attempts, Harbhajan Singh could not be contacted for comment on the Union ministry's disclosure. However, the Union ministry clarified that under Section 7 of the Electricity Act, 2003, setting up power generation units was a de-licensed activity. This means states and private entities do not require prior central govt approval to establish power plants, provided they comply with grid connectivity and technical standards. The ministry stated said ensuring adequate power generation to meet electricity demand within a state fell under the jurisdiction of the respective state govt or its power utility. Addressing a query on coal supply, the ministry highlighted several ongoing national initiatives aimed at reducing bottlenecks in coal logistics. It said coal linkage rationalisation had been implemented to reduce transportation distances between coal mines and power plants. Flexibility has also been provided to state and central generating companies (Gencos) in utilisation of domestic coal by state/central Gencos amongst their generating stations to reduce the cost of power generation by allocating more coal to their most efficient plants as well as by saving in transportation cost. The Coal Logistic Plan and Policy, spearheaded by the Ministry of Coal, focuses on enhancing supply chain efficiency through key railway infrastructure projects that reduce logistics costs and improve the timeliness of coal deliveries across the country.
Time of India
5 days ago
- Politics
- Time of India
Punjab minister contradicted, Union ministry says no proposal to set up 3 power units
Chandigarh: Contradicting Punjab power minister Harbhajan Singh's claim that it approved three 800-MW power units in Punjab, the Union ministry of power has clarified it had not received any such proposal. The clarification came in response to a query in the Lok Sabha by Congress MP Charanjit Singh Channi, who sought details regarding central govt's approval to three new thermal units of 800 MW each — two in Ropar and one at a new location. Responding to Channi's question, the ministry stated: "No such proposal has been received in the ministry of power." The rebuttal follows Harbhajan Singh's announcement on June 7, after the Conference of North Indian Power Ministers in Delhi, chaired by Union power minister Manohar Lal Khattar. The conference was attended by energy representatives from Punjab, Haryana, Himachal Pradesh, Chandigarh, Rajasthan, Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Ladakh, and Delhi. Harbhajan Singh claimed that the Centre approved the setting up of two additional plants, each of 800 MW capacity, at Ropar. Additionally, he claimed, approval was granted to setting up a new 800-MW power plant at another location to meet Punjab's growing electricity demand. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Learn more about Sterilization Using Autoclave Technology contentcuehub Search Now Undo Despite repeated attempts, Harbhajan Singh could not be contacted for comment on the Union ministry's disclosure. However, the Union ministry clarified that under Section 7 of the Electricity Act, 2003, setting up power generation units was a de-licensed activity. This means states and private entities do not require prior central govt approval to establish power plants, provided they comply with grid connectivity and technical standards. The ministry stated said ensuring adequate power generation to meet electricity demand within a state fell under the jurisdiction of the respective state govt or its power utility. Addressing a query on coal supply, the ministry highlighted several ongoing national initiatives aimed at reducing bottlenecks in coal logistics. It said coal linkage rationalisation had been implemented to reduce transportation distances between coal mines and power plants. Flexibility has also been provided to state and central generating companies (Gencos) in utilisation of domestic coal by state/central Gencos amongst their generating stations to reduce the cost of power generation by allocating more coal to their most efficient plants as well as by saving in transportation cost. The Coal Logistic Plan and Policy, spearheaded by the Ministry of Coal, focuses on enhancing supply chain efficiency through key railway infrastructure projects that reduce logistics costs and improve the timeliness of coal deliveries across the country.
Business Standard
07-05-2025
- Business
- Business Standard
Cabinet approves Revised SHAKTI Policy for Coal Allocation to Power Sector
The Cabinet Committee on Economic Affairs has approved grant of fresh coal linkages to Thermal Power Plants of Central Sector/State Sector/ Independent Power Producers (IPPs). Two windows have been proposed under the Revised SHAKTI policy: Coal Linkage to Central Gencos/States at Notified price: WindowI and Coal Linkage to all Gencos at a Premium above Notified price: Window II. With the introduction of Revised SHAKTI Policy, existing eight paras, for coal allocation, have been mapped to only two Windows, in the spirit of ease of doing Business. Window-I (coal linkage at notified price) and Window-II (coal linkage at premium above notified price). Revised SHAKTI Policy shall enable the Power Plants to plan for meeting their coal requirement depending upon their demand for Long-Term / Short Term.
Express Tribune
24-04-2025
- Business
- Express Tribune
Govt skips taxes despite Rs1.56tr hit
Listen to article The government has stated that it does not plan to impose any new taxes or levies to recover a massive Rs1.56 trillion revenue shortfall, which will result from revising tariff agreements with state-owned generation companies (Gencos). During the public hearing held on Thursday, it was informed that there would be savings of Rs1.5 trillion for consumers due to a revision in tariff for state-owned Gencos, which means that the government has to face this hit in its income. "However, the government has no plan to impose another tax or levy to recover this amount from the public," Power Division officials said. But they pointed out the possibility that the government was giving subsidies to the power consumers that could be reduced following the hit of Rs1.5 trillion on its income. During the hearing, interveners appreciated the government and Power Division efforts to slash the tariff by signing deals with power plants to reduce the burden of capacity payments. The government had also shifted power plants from "take-or-pay" to "hybrid take-and-pay" to reduce the burden of capacity payments. However, the Power Division officials ruled out a 50% reduction in capacity payments following revised deals with independent power plants and Gencos. The interveners said that the government had cut gas supply by 220 mmcfd on the SSGC system and by 150 mmcfd on the SNGPL system. They said that the government should mix this gas with RLNG and provide it to efficient power plants to cut electricity rates further. It was informed that the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) had signed negotiated settlement agreements/MoUs with the government-owned plants to reduce end-consumer tariffs. These power plants included National Power Parks Management Company – Balloki, National Power Parks Management Company – Haveli Bahadur Shah (HBS), Central Power Generation Company Limited – Guddu 747MW and National Power Generation Company Limited – Nandipur. CPPA-G had filed a joint application before the National Electric Power Regulatory Authority (Nepra) for the reduction in tariff components of these plants under the negotiated agreements. The notice of admission/hearing was published on April 18, 2025. During the public hearing conducted on Thursday, it was highlighted that the power tariff of Gencos would be reduced up to Rs0.32 per unit. The tariff of CPGCL's 747MW plant would be reduced by Rs0.24 per unit, NPGCL Nandipur's Rs0.32 per unit, NPPMCL Haveli Bahadur Shah's Rs0.27 and NPPMCL Balloki power project's Rs0.26 per unit. Under the deal, the rate of return is fixed at 13% at Rs168/$, with no future indexation. The return on equity (ROE) beyond 35% shall be paid on a units-delivered basis (ie, take and pay). The insurance component shall be as per actual or 0.9% of the EPC cost for Gencos, whichever is lower. The insurance component shall be as per actual or 0.8% of the sum insured for GPPs, whichever is lower. Local O&M shall be indexed at 5% or the 12-month average NCPI, whichever is lower. A 30% discount shall apply to foreign O&M indexation in case of rupee devaluation against the US dollar. In the case of rupee appreciation against the US dollar, 100% of the benefit will be passed on to consumers. CPPA-G had requested that ROE and ROEDC shall be revised to 13% at a fixed exchange rate of Rs168/$. The hybrid take-and-pay mechanism shall be approved, with payments beyond 35% based on units delivered. Local O&M indexation shall be allowed at the lower of 5% annually or the average annual NCPI. Foreign O&M indexation shall be allowed as per the revised mechanism. Indexation shall be the lower of 5% per annum or the average NCPI for the preceding 12 months. Indexation shall follow the existing mechanism; however, PKR/USD depreciation shall only be allowed up to 70% of actual depreciation per annum. Any appreciation shall be fully passed on to consumers. The maximum limit of the insurance component shall be capped at 0.9% of the allowed EPC cost for Nandipur and Guddu 747MW and 0.8% of the sum insured for Balloki and HBS. The foreign component of ROE and ROEDC shall be recomputed at a 13% return using a fixed exchange rate of Rs168/USD. No further exchange rate indexation shall apply. Plants will receive 35% of ROE and ROEDC as part of the capacity payment. If the actual Net Electrical Output (NEO) exceeds 35% of the contracted capacity in terms of kWh, the plants will receive additional ROE and ROEDC based on the excess NEO. In a statement, NEPRA has decided to discontinue dollar-based indexations for the plants, transitioning instead to rupee-based indexations fixed for the entire useful life of the power projects. This strategic revision aims to curb foreign exchange exposure and reduce tariff volatility for consumers. The hearing, attended by sector professionals and members of the public, was met with wide appreciation. Citizens commended the authority's commitment to fiscal responsibility and its proactive role in ensuring a sustainable and consumer-friendly power sector. Nepra remains steadfast in its mission to implement reforms that ensure transparency, efficiency, and affordability in the power sector.
