Simhadri Thermal may fall short of power generation targets

The power generation at the National Power Corporation Limited's (NTPC) Simhadri Thermal Power Plant (STPP) may fall short of the targets this year.

STPP has generated 5,108 million units (mu) with 88 per cent plant load factor (PLF) in 2003-04. While the plant management set a target of 7,500 mu with 90 per cent PLF, NTPC has directed STPP to generate up to 7,600 mu this year.

"Despite the plant having the capacity to produce the targeted 7,600 mu, the Andhra Pradesh Transmission Corporation (APTransco) has been creating several hurdles in generating the targeted power from STPP. We may, therefore, miss the power generation targets by two to three per cent this year," R Rama Rao, the general manager of STPP, told Business Standard.

"As per the initial agreement between the state government and NTPC, the entire power generated by STPP has been supplied to meet the requirements of Andhra Pradesh only. Keeping this in mind, the state government is repaying the capital costs along with the power price. But now, APTransco is imposing some restrictions on STPP's power generation. This would adversely affect our performance in the long run," Rao said.

"If there are rains in any part of the state, APTransco instructs us to reduce power generation. Ultimately, this kind of situations has affecting our power generation targets," he said.

"To continue the power generation at full capacity, STPP has negotiated with the Power Trading Corporation (PTC) for supply of excess power. Though the latter has agreed to purchase power from STPP, it asked for guarantee on some amount of power on regular basis, to which the APTransco is not agreeing," Rao said.

"STPP has approached APTransco for permission to supply the excess power to PTC. But APTransco has denied permission. This will affect our production targets and we may not reach several national performance parameters maintained by NTPC," he added.