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Kcr Says No To Private Power Producers


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Posted

its just laughable how power is organized in India. All because govt has monopoly on distribution.

 

Those agreements are a joke.

 

what percentage of power does TG buy from private producers?

 

I think the old PPAs that AP Transco made with private power producers are still in vogue and are shared between AP and TS

Fortunately TS has not private power plants except the new solar plants that are coming up ..

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Posted

I think the old PPAs that AP Transco made with private power producers are still in vogue and are shared between AP and TS

Fortunately TS has not private power plants except the new solar plants that are coming up ..

 

yeah, but I think percentage of power purchased from private will be less than 10% of total.

Posted

It may be higher for TG, because it doesn't have many power plants.

Posted

I have given example of electricity itself. Earlier in United AP, the state used to produce the electricity through its own sources and used to regulate the prices. It has always become burden and each Govt started increasing the electric prices in order to keep the electricity boards keep running. When AP was doing this, TN has outsourced some % electricity generation to the Pvt players and started buying from them, there are many Pvt windmill operators if go towards Nagarcoil. (Pvt companies can't produce from hydro and coal easily). And the TN electricity board which is under the Govt used to regulate the prices. The electricity prices has been always low in TN compared to what we had in united AP. There was huge difference. Later AP govt started welcoming the Pvt players due to the excessive demand.

 

About my notion of liability, take an example of IDPL in Hyd. Do you think thats asset to the Govt? Compare the IDPL with Dr Reddy Lab. Anji Reddy was also an employee of IDPL. It was during the Vajpayee Govt (Arun Shourie) started the disinvestment of many such companies (which they felt are liability), even the MMS govt has dis-invested thousands of crores worth of Govt companies. They are still struggling to get rid of companies like Air India.

 

Again, lets be specific to Power industry -

 

I don't think we are in a controlled era anymore. Per power industry deregulations,Govt's can't impose fixed prices.

 

Where did you find the info about TN has regulated prices, which is contrary to below news -

(TN hikes power tariff by 15 per cent - http://www.thehindu.com/news/national/tamil-nadu/tn-hikes-power-tariff-by-15-per-cent/article6683531.ece)

 

I think its a myth that Private Power Industries over-perform Govt ones, and there are plenty of proven examples of failed private power companies and failed strategies of power privatization (Check out Orissa reforms).

Posted

Again, lets be specific to Power industry -

 

I don't think we are in a controlled era anymore. Per power industry deregulations,Govt's can't impose fixed prices.

 

Where did you find the info about TN has regulated prices, which is contrary to below news -

(TN hikes power tariff by 15 per cent - http://www.thehindu.com/news/national/tamil-nadu/tn-hikes-power-tariff-by-15-per-cent/article6683531.ece)

 

I think its a myth that Private Power Industries over-perform Govt ones, and there are plenty of proven examples of failed private power companies and failed strategies of power privatization (Check out Orissa reforms).

 

That link is not working. I lived in TN, that's how learned from some guys there (And one of our lecturers explained that all the public services prices are regulated by Govt there, it was way back and the prices there were a lot cheaper than what we had in united AP). Even the link you posted indicates that its the Govt that has increased, not the Pvt companies.

 

Simple thing. Government is for governance not for manufacturing or production. That is for the others to do and the Govt should provide the conductive environment and regulate thus lessening the burden on the people.  I have given enough of examples and why the PSUs have failed miserably over the years and why successive Govts in last 15 years are slowly realizing and going for dis-investment.

Posted

That link is not working. I lived in TN, that's how learned from some guys there. Even the link you posted indicates that its the Govt that has increased, not the Pvt companies.

 

Simple thing. Government is for governance not for manufacturing or production. That is for the others to do and the Govt should provide the conductive environment and regulate thus lessening the burden on the people.  I have given enough of examples and why the PSUs have failed miserably over the years and why successive Govts in last 15 years are slowly realizing and going for dis-investment.

 

Didn't get you point about Govt increase not private. End result is impact is on the Consumer, whoever increases/ whatever the reason for increase may be...

 

Link Content -

 

Electricity_2240729f.jpg

 

Despite widespread protests by consumers and industries against any power tariff hike, the Tamil Nadu Electricity Regulatory Commission (TNERC) on Thursday decided to effect 15 per cent increase for all categories of consumers.

 

The revised tariff comes into effect from Friday (December 12) and will net Rs 5,225-crore revenue annually including the government’s subsidy to the cash-strapped Tangedco. For 10 lakh consumers, mostly in urban areas and especially Chennai, with consumption of above 500 units on a bi-monthly basis, the minimum power charge would be Rs. 3.50 per unit and the maximum Rs. 6.60 per unit. As per a conservative estimate, the power consumption by the high-end users works out to around 5,000 million units annually, roughly 25 per cent of the total consumption by the domestic consumers.

 

As of now, they account for 31 per cent of the total annual revenue of Rs. 7,350 crore from them.

Chief Minister O. Panneerselvam announced that the burden of tariff hike would not be passed on to most of domestic consumers.

Out of 1.71 crore domestic consumers, 1.61 crore accounting for 94 per cent of the category would not have to pay more even after the tariff revision by the TNERC. The free power supply would continue for agricultural connections and huts besides sections of handloom and powerloom units, he added.

 

On the financial front, the government’s subsidy would be Rs.1,310 crore. The electricity charges paid by various types of consumers would be Rs. 3,915 crore.

 

Posted

simple Funda man kcr uncle em chesina correct ga chesthaadu ani fix ayipo

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