22/10/2016

NTPCcutspowercostbynearly14%TheFinancialExpress

NTPCcutspowercostbynearly14%
By:FEBureau|NewDelhi|Published:January16,201612:22AM

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StaterunthermalpowerproducerNTPConFridaysaidthatcoalrationalisationatsomeofits
plantsalongwithreductionincoalimportshasbroughtdowntheaveragevariablecostfor
powerbynearly14%betweenSeptemberDecemberperiodtranslatingintosavingsofR300
croreforconsumersbytheendoflastyear.
However,thelargestthermalpowerproducerofthecountrysaidthattheadherencetorecently
announcedemissionnormsforcoalbasedpowerplantswouldheavilyburdentheconsumers
butrefusedtoquantifyit.Wearestillintheprocessofassessingcostimpactofthenew
emissionnorms.Wewouldpresentourfindingtotheministrybythemonthendandapprisethe
governmentofthepotentialburdenonconsumers,AKJha,chairmanandmanagingdirector,
NTPCsaid.
AsFEhadreportedearlier,thecostofcomplianceforcoalbasedpowerproducerswithstrict
normsforsulphurdioxideandnitrogenoxidewaslikelytobenearlyR2.4lakhcroreforthetotal
installedcapacityinthecountry.
Meanwhile,theaveragevariablecostforNTPCfellby28paiseperunittoR1.78perunitbythe
endofDecembercomparedtoSeptember.Thevariablecostforpowerprimarilyaccountsfor
fuelcostwhichispassedthroughtotheconsumers.Powercostalsoincludesfixedcostwhich
correspondstoreturnoninvestmentfortheoperatorandremainsunchangedthrougha
projectslife.AttheendofSeptember,2015,NTPCsaveragetotalcostwasR3.20perunit.
ThecompanyhasswitchedtoprocuringcoalfromsourcesclosertoplantsinMoudaand
Ramagundamthuscuttingdownonfreightcharge.Wehavealsoswitchedtobuyingcheaper
coalunderfuelsupplyagreement(FSA)forBarhprojectasopposedtoMoUrouteearlier,Jha
saidexplainingthereasonsforreductioninpowercost.
Jhasaidthecompanycutcoalimportsby30%to8.6milliontonnes(MT)forAprilDecember,
2015periodfrom12.3MTforthecorrespondingperiodayearago.Thecompanyalsocutdown
oncoalprocurementthroughmoreexpensiveeauctionby64%to0.312MTinthefirst9

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22/10/2016

NTPCcutspowercostbynearly14%TheFinancialExpress

monthsofthecurrentfiscal.About47%ofNTPCscoalbasedplants,havinganinstalled
capacityof14,780MW,haveenergychargeoflessthanR1.50perunit.
45%plantstotalling14,190MwcapacityhaveenergychargesrangingbetweenR1.50toR3per
unit.Therest8%plants(2,525MW)haveenergychargeofR3to4perunit,Jhasaid.The
company,however,saidthatlowercostofimportedregassifiedliquifiednaturalgas(RLNG)
fromQatarwasunlikelytoboostproductionfromitsgasbasedpowerplantsasthecostof
powerwaslikelytobeaboveR5perunit,makingitdifficulttobesold.
Currently,weonlyhaveBadarpurandDadriplantsthatproducepoweratoverRs4perunit.
Wearefindingitdifficulttoschedulethesupplyofpowerproducedfromtheseplantsdueto
relativelyhighercost,Jhasaid.
HeaddedthatthiswasanindicationthatdespitelowerRLNGpricesgasbasedpowerwouldbe
evenmoredifficulttosell.NTPChasatotalinstalledcapacityof45,548MWIncludingover
5,000MWofgasbasedcapacity.Thelatteriscurrentlyrunningatjustover27%utilisation.

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