NTPC has virtually turned down the demand of the Government of Andhra Pradesh (GoAP) for price capping saying that it will not be possible for the power major to do that as the gas supply agreement (GSA) signed for the CCPP does not provide for such ceiling of linked crude oil price in the LNG price formula.- However, the power firm seems to have no objection with the bundling of the Kayamkulam-II power with the less-expensive unallocated power from its other power stations.
- It has maintained that the call regarding bundling has to be of the power ministry as the discretion to distribute the unallocated quantum of power from all the central generating stations in the country lies entirely with the ministry.
- Thus, NTPC has left it to the wishes of the power ministry to okay such bundling so that the beneficiaries of the power plant get the pooled power at a relatively lower cost.
- To note, NTPC has been supporting similar request from the Tamil Nadu government to continue the special allocation of 180 MW of cheap power from NTPC`s eastern region plants to Taml Nadu Electricity Board, as an incentive for the Board to draw the same quantity of, comparatively, more expensive power from the 360 MW stage-I of the Kayamkulam-I plant in Kerala.
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