NTPC to give Mumbai 350 mw; electricity tariff may go up

Mumbai, Oct 20 | Updated: Oct 21 2006, 05:30am hrs
Mumbaikars may just have to shell out more to keep the problem of load shedding at bay, especially during the ongoing festive season and even thereafter.

This is because the state-run NTPC has agreed to release 350 mw from its naphtha-based Kayamkulam project in Kerala with a per unit tariff of around Rs 6. The tariff will be based on the availability of naphtha and its current price. Of the 350 mw, nearly 150 mw will be available immediately on continuous basis during peak hours.

The MahaVitaran has indicated that Tata Power Company (TPC) and Reliance Energy Ltd (REL) can use its transmission network to transport the power generated from the Kayamkulam project and thereby meet the ever increasing power demand in Greater Mumbai.

REL, which supplies power to over 22 lakh consumers mainly from Mumbai suburbs, has been forced to withdraw load shedding after loud protests from various political parties and consumer organisations. Besides, the company had to indefinitely withdraw the 24% tariff hike on account of the recovery of rebate of Rs 350 crore. The company had to srguggle to meet power demand.

Sources told FE that in view of NTPCs desire to supply power from Kayamkulam project, REL, with a generation capacity of 500 mw, would benefit a lot though it has to pay more for the drawal.

The power demand, especially in Mumbai suburbs, has been rapidly increasing mainly due to fast rise in residential and commercial colonies and shopping malls in particular. However, in comparison with these developments, the power generation is at slow pace, sources added.

Moreover, TPC, with a generation capacity of 1,330 mw at its Trombay facility, can also purchase Kayamkulam power to meet its requirement in its license area which is mainly south Mumbai and around.

This apart, the MahaVitaran, which is striving to meet the increasing demand and supply mistmach of over 3,500 mw in the state, can also draw part of the Kayamkulam power and supply it at the higher rate to Mulund, Bhandup, Nashik, Nagpur and Aurangabad. On top of it, it can supply the same power to those who are willing to draw costly power.