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Home News Power Sector News NTPC will not be allowed to sell power in Market: Centre

NTPC will not be allowed to sell power in Market: Centre

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NTPCThe power ministry categorically ruled out the possibility of letting the state-owned NTPC sell power in the open market, a proposal the nation’s larger utility has been pursuing with the ministry for long to rake in better making profit. “Right now the power ministry is not keen on letting National Thermal Power Corporation sell merchant power in the market,” power secretary HS Brahma told reporters.

There are a lot of reasons attached to not letting NTPC sell power at market determined prices. “Any problem or a disaster-like situation can occur in a state, and if they need power at that point of time, NTPC cannot expect them to buy it (at market price),” Brahma said.

NTPC had planned setting up merchant plants and the output from those plants would be sold in the open market at the market prices.

“They are already making profits, why do they want to earn more through merchant power,” he said adding the company has its hands full and should concentrate on capacity addition. “They have so much to add in solar, wind energies; they should focus on that. Our interest is to serve the country and not make profits,” he said.

Earlier the minister of state for power Bharatsinh Solanki had said the government had no proposal to allow NTPC to sell power in the open market. “The government does not have any proposal to allow NTPC to sell around 10 per cent capacity at market determined prices,” Solanki had said.

At present, NTPC sells 100 per cent of its generation to the state power utilities, distribution companies through long-term power purchase agreements. This exchange takes place as per the allocation finalised by the Union power ministry and based on the tariff determined by the Central power sector regulator, the CERC.

As per the Electricity Act of 2003, a generating company can supply electricity to any licensee. It can tie up for a part of its capacity in long-term power purchase agreement.

Source- Financial Express
 

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