Power bundling: MoP declines NTPC's request for additional allocation

The Ministry of Power (MoP) has declined NTPC`s request, seeking allocation of 301 MW of power from the unallocated central quota of coal-based power, for sale along with more expensive solar power generated by NTPC Vidyut Vyapar Nigam Limited (NVVNL). The ministry has argued that the solar arm of the power major has already been allotted 1,000 MW of power from the 5,000 MW reserve, and no further allocation would be feasible. 

•  This is because, according to the ministry, the shortfall faced by states at present already exceeds the unallocated pool and, thus, diversion of another 301 MW of power from the quota would cause further stress to this mechanism.
• Further, according to the ministry, the unallocated power from central-sector generation stations is, primarily, intended to meet the emergent and seasonal demands in the states and union territories and, as such, is not meant for the purpose cited by the utility. An in-principle decision has also been taken for the supply of 250 MW power from the unallocated quota to Bangladesh.
• NTPC, in its proposal, had argued that bundling is necessary to bring a degree of affordability to solar generation. While tariffs for photo-voltaic solar generation stands at 17.91 per unit, the cost of thermal power is only around Rs 2.5 per unit. On bundling, the combined tariff works out to be Rs 5.10 per unit.