Tolling policy: GMR restarts Chhattisgarh power plant

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Published: February 6, 2018 5:01:31 AM

In what could pave the way for other stressed power plants, GMR Chhattisgarh Energy, a subsidiary of GMR Infrastructure, has restarted operations at its thermal power plant in the state to supply 500 MW of power to Gujarat Urja Vikas Nigam (GUVNL) under the ‘tolling’ policy of the Centre.

GMR Chattisgarh Energy, GMR infrastructure, Gujarat Urja Vikas Nigam, Gujarat Electricity Regulatory CommissionIn what could pave the way for other stressed power plants, GMR Chhattisgarh Energy, a subsidiary of GMR Infrastructure, has restarted operations at its thermal power plant in the state to supply 500 MW of power to Gujarat Urja Vikas Nigam (GUVNL) under the ‘tolling’ policy of the Centre. ( Representational Image: IE)

In what could pave the way for other stressed power plants, GMR Chhattisgarh Energy, a subsidiary of GMR Infrastructure, has restarted operations at its thermal power plant in the state to supply  500 MW of power to Gujarat Urja Vikas Nigam (GUVNL) under the ‘tolling’ policy of the Centre. The company has entered into a short-term (8 months) contract with the Gujarat power generation company to supply 500 MW of power, effective January 15m at Rs 2.81/kilowatt hour (kWh) after getting an approval from the Gujarat Electricity Regulatory Commission (GERC), a source close to the development said.  When contacted, a GMR spokesperson, said, “GMR Chattisgarh Energy has become the first company to take the benefit of flexible utilisation policy of the government.

This initiative of the central government will help save fuel cost for railways and provide power to consumers at competitive tariff. Other utilities should also look at utilising this policy.”  GUVNL had invited bids for supply of 1,000 MW of power from independent power producers (IPPs) under the tolling policy, as part of the government’s plans to reduce cost of power sourced by state utilities. The policy allows utilities to buy power from IPPs by using coal from mines closer to power generating stations.  Earlier, coal used to be transported over 1,500 km to Gujarat, leading to congestion and the railways finding it tough to provide rakes for the movement. The tolling policy promises faster turnaround of rakes, leading to increased availability for other players.

The tender floated in August 2017 invited bids from IPPs to supply power using fuel sourced from GUVNL’s linkage coal from South Eastern Coalfield’s Korba, and Korea Rewa coalfields. GMR won the bid for supply of 500 MW power. “The new agreement requires for power to be sold at Rs 2.81/kWh compared to Rs 3.26/kWh for supplies from Wanakbori plant, whose coal is being ‘tolled’ by GMR’s plant. With this arrangement, GUVNL has projected savings of Rs 200 crore for its consumers,” the source quoted above said. This also saves GUVNL from the penalty for not lifting enough coal, which touched Rs 203 crore in FY17.

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