before October 2010. Despite missing several deadlines, the project, entailing costs of Rs 5,195.81 crore and funding of 30 per cent of the approved cost as equity amounting to Rs 1,558.74 crore, is yet to be fully commissioned. The cumulative capacity charge for the June-December 2013 period (for Delhi, Haryana and Punjab) amounted to a total of Rs 418.35 crore, which combined with the energy charge of Rs 120.81 crore for the period, worked out to an average tariff of over Rs 13 per unit for the six months period.
Since it has a power purchase agreement in place with the five Delhi discoms — BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd, Tata Power, MES (Cantonment) and New Delhi Municipal Council — as well as Punjab and Haryana, all the utilities are forced to shell out capacity charge for the fuel-starved second block units of the Pragati project that is being scheduled on imported fuel. Consumers, in turn, have to foot the bill by way of retail tariffs.
Around 70 per cent of the power from the project is being supplied to the discoms of Delhi, while 10 per cent each going to Punjab and Haryana. As it stands, one of the solutions is for the Delhi government to forego the return on equity — which works out to 20-30 per cent of tariff — in order to provide relief to consumers.