Gridco complains to Power Grid over evacuation issues

State-run Gridco Ltd recently complained to Power Grid Corporation of India Ltd (PGCIL) about power evacuation issues that affected its business transactions.

The power trader recently faced problems in selling energy to outside states due to lack of availability of routes for supplying electricity, also known as power corridor.

"In July, we could sell 300 Mw power on an average daily against our commitment of 400 Mw supply. In August the average daily sales slumped to 11 Mw due to non-availability of power corridor", said a source in the know of the matter.

PGCIL has acknowledged the problems persisted in power supply to outside states in eastern region and assured to resolve the issue soon, the source added.

PGCIL is the power transportation agency of the Union government and has large network across India.

In June this year, Gridco had floated a tender for sale of surplus power, buoyed by more generation from hydro power stations on the backdrop of favourable monsoon rains and increased generation by private thermal power producers.

The company selected PTC India and NTPC Vidyut Vyapar Nigam Ltd to sell 200 Mw power each for Rs 5 per unit. However, lack of routes to sell power has dented the business prospect of the company.

The surplus power, estimated to have been sold for about Rs 2,000 crore, has to be supplied between July 2013 and November 2014 through the open access route as per the tender document.

"It is a pity that we have sufficient power but we cannot sell it because of evacuation problems. The PGCIL must take care of these issues", the official said.

Gridco has guaranteed to supply around 80 per cent of committed power to the buyer, failing which it will pay the buyer at Rs 1 per unit for each deferential unit. However, lack of power transmission availability leading to supply loss would not attract penalty, a company official clarified.