The Centre will provide Delhi government a coal block by September-October this year in any of the coal producing states of Jharkhand or Odisha, Delhi power minister, Mr Satyendra Jain said at an ASSOCHAM event held in New Delhi today.
“We will get our coal block around September or October and our ministry has planned that wherever we are given the coal block we will set up our plant on the fit head because no one is providing us electricity at lower rates so we will make it on our own and it will cost us around Rs 2.50-3 per unit,” said Mr Jain while inaugurating a conference titled ‘Affordable 24×7 Power to All @2019,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
He also said that Delhi government has requested the Centre to surrender unnecessary power purchase agreements (PPAs) of about 2,200 MW electricity in order to reduce costs. “There is a need to cut the unnecessary flab.”
“PPAs in Delhi are much higher than the requirement as such we have proposed to surrender about 2,200 MW,” said Mr Jain. “Many companies are willing to sell us electricity at Rs 3-3.5 per unit including exchanges, besides companies are willing to enter into PPAs.”
Emphasising on the need to reduce electricity tariff in Delhi, the minister said that his ministry has sought the support of Delhi Electricity Regulatory Commission (DERC) in this regard.
“Industries in Delhi are willing to relocate outside but are not willing to bear anymore hike in power tariffs,” said Mr Jain.
He said that power sector should work as per efficiency rather than cost-plus basis. “I have failed to understand that why is everything in this sector done on the basis of cost-plus system.”
The Delhi minister said that there is no need to set up more power plants but to utilise their full capacity. “Bawana power plant in Delhi is more of a monument and national wastage with a capacity of 1,200 MW but is producing only up to 200 MW due to non-availability of gas.”
“I am told that power plants in India have a capacity of 2,70,000 MW but are producing only a half of their full capacity,” he added.
The minister also said that use of LED bulbs should be promoted to conserve energy.
He further said that regulatory assets in Delhi are nothing but farce.
In his address at the ASSOCHAM conference, Mr P.D. Sudhakar, chairman of the DERC stressed upon the need for more investments to perk up the electricity transmission and distribution system in Delhi