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Liteteesko
Side Hero Username: Liteteesko
Post Number: 4762 Registered: 01-2012 Posted From: 58.84.110.240
Rating:  Votes: 1 (Vote!) | | Posted on Tuesday, March 05, 2019 - 02:25 am: |
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State governments are struggling with high costs of power purchase, putting pressure on power distribution companies. The higher costs are due to an increase in price of coal, rail freight, rise in electricity demand, and an increase in short-term purchase costs, among others. According to data compiled by the Ministry of Power, the average cost of power purchase has increased to ₹4.30 a unit in the first half of financial year 2018-2019 from ₹4.12 a unit in the first half of financial year 2017-2018. State-wise costs Telangana has the highest power purchase cost during the period under review at ₹5.10 a unit while Karnataka comes second at ₹4.74 a unit. The lowest power purchase costs have been assessed in Goa at ₹3.21 a unit and Himachal Pradesh at ₹2.29 a unit. In total, 11 States (of the 20 States reviewed) have average power purchase costs above ₹4 a unit. The hike in power purchase costs have been driven by higher coal and freight charges. “It can be noted that during financial year 2018-2019, there has been an increase in the price of coal across all grades. The price of G12 (3,700 to 4,000 kilo-Calories) grade increased by around 17 per cent. Railway transportation charges of coal and coke have had successive increases of 21 per cent and 8.75 per cent effective January and November 2018,” the Ministry of Power said in a statement circulated to State governments. Further worsening the position of DISCOMs are inadequate electricity tariff hikes despite the higher costs. This is in contrary to the reforms envisaged under the Ujwal DISCOM Assurance Yojana (UDAY), the centre’s flagship scheme for improving the health of power distribution companies. During the UDAY period (practically post January 2016), there has been an increase in the fixed costs incurred by the DISCOMs. |