Rajasthan to exit from five high-cost power contracts with NTPC
The energy department has decided to exit from five expensive power purchase agreements (PPAs) worth 252 megawatts with NTPC.
Last Friday, the board of the energy department approved a decision to end the PPAs that were signed in 1994 with a rate of Rs 15 a unit for Anta gas plant and Rs 10 for Auraiya Gas power. This agreement is estimated to save the government Rs 200 crore annually and also bring down the costs.
Rajasthan is the renewable energy leader all over India with renewable sources of energy providing power below Rs 2.50 per unit, the department is trying to get rid of as much high-cost thermal capacity as it will become easy to bring down the costs and provide cheaper power to the consumers and become easily affordable for them.
“This decision is aimed at bringing down the cost of power purchase and reducing the burden on the common man.” Dinesh Kumar, principal secretary, energy department Said.
Rajasthan Vidyut Utpadan Nigam Ltd (RUVNL), recently submitted a proposal to retire two Kota super thermal power units each producing 110 units.
The decision was taken out of the unsustainable PPAs comes after the centre in March this year allowed the distribution that they can complete the agreements with the plants that have outlived their useful life and are running on obsolete, inefficient technology resulting in higher cost of production.