Power generation cost drops by 39.5 paise

New Delhi, April 17

The availability of better quality coal has reduced the cost of producing thermal power by an average 39.5 paise, while for the Mauda project, it was a decline of Rs 1.65 per unit.

Official data released by the Power Ministry shows the overall cost of power generation has come down to below Rs 2 last fiscal, driven by the availability of the improved quality of coal and its supplies.

State-owned NTPC manages and produces the majority of the thermal power in the country, while some of the private players produce thermal power required by them.

Officials said the decline in the power production by 39.5 paise does not include taxes and cess primarily imposed to finance environment protection.

According to the data, the overall cost of power production for the firm stood at Rs 2.01 per unit in 2014-15, which has declined to Rs 1.94 in April-February of 2016-17.  The officials said though the actual reduction was 6.4 paise per unit, but if increased levies and charges are taken into account, the total drop in power output cost would translate to 39.5 paise.

NTPC’s Mauda project registered an overall fall in power generation cost at Rs 1.65 per unit, taking into account revision of levies and charges. The other plants which gained are Barh Stage-II (Rs 1.24 per unit), Badarpur (Rs 1.16) and Tanda (93.6 paise). — TNS