While the Gadgil formula governing power allocations from central sector generating stations is, on paper, still in effect, in practice it has been rendered almost inoperative by the power ministry granting several exceptions over the years. Recently, six super thermal power stations (STPS) of NTPC, that were previously held hostage to demands from certain adamant state governments, have been allowed a special dispensation in order to facilitate their execution. The projects in question are the Lara, Gadarwara, Darlipalli, Gajmara, Talcher Expansion and Kudgi STPS. An account of the proposed distribution of power from these stations, vis-a-vis the provisions of the Gadgil formula, has been provided below:
Special dispensation
50% power to the concerned "Home States" in which the projects are to be set up.
Gadgil formula
10% is allocated to the state in which the project is located.
Special dispensation
35% power is to be allocated to the other constituent states, except "Home State", of the concerned region based on their energy consumption and Central Plan Assistance (CPA) during preceding five years with equal weightage to both.
Gadgil formula
--37:5% is allocated in proportion of energy consumption of the states of the region during the previous five years.
--37.5% in proportion to the Central Plan Assistance (CPA).
Special dispensation
10% power as unallocated quota at the disposal of the Government of India (GoI).
Gadgil formula
15% capacity should be kept aside as unallocated quota.
Special dispensation
5% power for short-term sale via open access.
Gadgil formula
No provision.
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