Gas cost to fuel power price

Power prices across the country will go up in the summer months, with fuel costs going up for National Thermal Power Corporation, the country's largest power generator.

A 46 per cent hike in the price of gas from the Panna, Mukta and Tapti fields will mean that buyers of power from the Kawas and Gandhar plants will have to shell out an additional 5 paise per unit for the 600 Mw of gas they will get from the NTPC).

Gail (India) Ltd has started supplying 2.1 million standard cubic metres a day (mmscmd) of gas from the Panna, Mukta and Tapti fields with effect from today at a price of Rs 4,160 per mmscmd against the administered price of Rs 2,850 per mmscmd.

It has also agreed to supply, on a "best endeavour" basis, an additional 1.9 mmscmd gas, at APM prices, thereby enhancing the supplies by up to 4 mmscmd.

Maharashtra, which is expected to get about 600 Mw of power from the Kawas and Gandhar plants of NTPC, will have to shell out the higher price. At present, Maharashtra is facing a power crisis.

Also, with coal imports having landed in the country, supply of power from the Farakka, Simhadri and Talcher plants will go up May onwards, and so will the prices.

The power generator had given the contract for importing coal to MMTC and the first consignment of 1.75 lakh tonnes has landed.

"Coal imports have started. We will review the position each quarter and increase imports if required. As of now, we plan to import 21 lakh tonnes of coal this fiscal," said a company executive.

Of the total imports, 1 lakh tonne a month is for the Orissa-based Talcher plant, 50,000 tonnes are for the Farakka plant and 25,000 tonnes are for the Simhadri plant of NTPC.

The price of power supplied from the Farakka super thermal power plant is expected to go up by about 2 paise per unit on account of the higher costs of importing and transporting coal. The company also has plans to expand the plant's capacity from 1600 Mw to 2100 Mw.

The company's 1000 Mw Simhadri project will now supply power at an additional 4 paise per unit. In Talcher, the Orissa-based plant, the price is expected to go up by as much as 7 paise per unit.

Cost spiral

• The price of gas from the Panna, Mukta and Tapti fields has gone up 46%
• Gail has started supplying 2.1 mmscmd gas at a price of Rs 4,160 per mmscmd against the administered price of Rs 2,850 per mmscmd
• With coal imports supplying the Farakka, Simhadri and Talcher plants, supply will go up in May, and so will the prices
• The price of power supplied from the Farakka super thermal power plant is expected to go up by about 2 paise per unit