Mumbai, Jan 14: The Dabhol Power Company (DPC), which has yet to make any headway in seeking approvals for the third party sale of the Dabhol power project, has decided to pursue the matter with the governments of Maharashtra and Karnataka. The DPC has proposed to sell 50 mw initially to Karnataka and later up to 100 mw based on necessary approvals from the Maharashtra government and the Maharashtra State Electricity Board (MSEB). Enron Corp vice president Sandeep Kohli told The Financial Express that the DPC has yet to get any formal approval from the Maharashtra government and the MSEB. He also added that the company, which had initiated a dialogue with the Karnataka government for the sale of power, has also yet to receive further communication from the latter in this regard.
Mr Kohli also stressed on the need to launch power trading in a big way in India as "power is a perishable commodity". He said that a one per cent increase in the plant load factor (PLF) would be the equivalent of a 1,500 mw capacity addition at 66 per cent PLF. "At Rs 4 crore per mw, this means an avoided investment of Rs 6,000 crore," he added. Mr Kohli called for changes in regulations and policies to pave the way for power trading with the existing infrastructure. "Trader must have knowledge of infrastructure and operations. Power trading allows different pricing structures and tenures which is a rational way to more closely match demand and supply," he added.
Mr Kohli said that there was no open access allowed to private entities and independent power producers (IPPs). This, he said, "breeds monopolistic behaviour and a lack of liquidity." Besides, the lack of transmission and tariff transparency has been a disincentive for private investments in transmission as only state electricity boards (SEBs) and Central generators can use the lines. Mr Kohli hoped that with the release of Electricity Bill 2000, there would be a multiplicity of entities. Similarly, there would be a regional and national unit for transmission planning.
Mr Kohli strongly suggested that a rational transmission pricing structure should be developed to promote investment in the transmission sector and allow for accurate costing at the end-user level. He reiterated the need for allowing private entities to market power in India and hoped that Electricity Bill 2000 would be translated into law. He emphasised the need for allowing open access along transmission lines and called for the rationalisation of the role of entities operating lines and managing despatch.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
