The Udupi Power Corporation Ltd (UPCL), a subsidiary of Lanco Infratech Ltd, an infrastructure developer, may have to wait a few more months to supply power to the state grid from its just-completed 1,200 Mw power plant due to delays in erecting transmission lines by the state government.
The company synchronised its second unit of 600 Mw on March 7 at Padubidri in Udupi district. UPCL has invested Rs 5,600 crore on its 2x600 Mw thermal power plant, which uses imported coal.
“UPCL is unable to evacuate entire 1,200 Mw from its Padubidri station to the state grid at Hassan as the Karnataka Power Transmission Corporation Limited (KPTCL) is yet to install the 400 kva line as agreed in the power purchase agreement,” official sources said.
However, this is likely to result in the financial burden on KPTCL, the state-owned transmission company, as the UPCL is considering to invoke deemed generation cla-use as agreed in the PPA, company sources told Business Standard.
The deemed generation clause enables the company claim charges for entire power irrespective of it being drawn by the KPTCL or not.
As against the required 400 kva line, as agreed in the PPA with the company, the KPTCL has set up only a 220 kva power line at Kemar near Karkala in Dakshina Kannada district. This is capable of evacuating only 200 Mw of power from the plant to the main national grid at Hassan. Presently, the company has managed to supply 600 Mw from the first unit with frequent trips. “It would be difficult for us to evacuate power without a 400 kva line. At the same we can not keep our second unit idle for a long time,” co mpany officials said. The erection of 400 kva transmission line has been delayed for nearly one year. It was scheduled for completion in April 2010.
Meanwhile, KPTCL officials said that they were waiting for the forest department clearance to erect transmission towers through the western ghats. “So far, the forest department has issued only stage-1 clearance and until we get the stage-2 clearance, we can not proceed with the job of erecting transmission towers in the forest area as it involves cutting of trees,” an official said.
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The 182 km long transmission line passes through the thick of western ghats and about 35 kms is forest area. The KPTCL has estimated the cost of this work at Rs 400 crore and has already completed the tendering process and awarded the contract to a Bangalore-based company. “Once, the stage-2 clearance is given we will start the work and it will be completed in about three months time,” the official said.
The ministry of environment and forests (MoEF), has however cleared the project subject to state forest department clearance, he said.
Out of 1,200 Mw generated by UPCL, Karnataka would get 1,080 Mw, while the balance 120 Mw will be supplied to Punjab. As per the interim tariff agreement between UPCL and KPTCL, the cost of power is fixed at Rs 3.12 per unit.
Presently, the power-starved state government is purchasing around 1,300 Mw from outside the state at a price between Rs 9 and Rs 12 per unit. The current demand for power in the state is estimated at around 7,500 Mw.