Private power players object to NTPC's sale of power in Bangladesh: Report

PRIVATE power generating entities have objected to the sale of power by NTPC to Bangladesh. The companies have argued that domestic coal supply via long-term agreement cannot be used to supply power to other countries. In a letter to the secretary, Ministry of Power, the representative body of private power companies, Association of Power Producers (APP), has said that the bid called by Bangladesh Power Development Board (BPDB) has specifically...
asked if the power supplied from India has the government's consent to use domestic coal.
“The access to Linkage Coal (at the notified price), supplied under FSAs/Coal supply agreements, and from captive coal mines, can only be utilised for Long Term/ Medium Term PPAs with discoms. This means that any bidder securing BPDB bid based on Domestic Linkage Coal/captive coal would lock in part of Domestic Coal resources for external consumption for 13 years, thereby hampering domestic consumer interests, and would be violative of the extant policy framework,” said the letter.
BPDB called bids for supplying 300 MW power from India. NTPC, the largest thermal power producer, won the bid beating three players namely Adani Power, Semcorp and PTC. NTPC would supply power through its power trading arm NTPC Vidyut Vyapar Nigam (NVVN).
The letter has urged the power ministry to clarify that the coal supplied under domestic linkage or coal from captive mines given to the power sector cannot be utilised for BPDB long-term tender.
“Cross-Border supply of power should be from e-auction/ imported coal only. An undertaking from bidders may be made part of the bid, saying that they will not use domestic linkage/ captive coal for such cross-border supply of power,” said the letter.
This comes at a time when the private players have complained that coal supply to them is significantly lower than what goes to NTPC. Also, they have reported slow coal supply under the new scheme SHAKTI which aims at a new methodology for supplying coal at optimal cost.
In a related development, breaking all previous records, NTPC’s Kahalgaon power plant has generated more than 16,000 million units of power in the current financial year. Group General Manager of NTPC’s super thermal power station, K Sreedhar, said that the generation of 16,178.28 milion units of power in 2017-18 fiscal was higher by 2.63 per cent over the previous best record of 15,947.75 million units in the financial year 2016-17. He also said that the Kahalgaon power plant also accorded priority to corporate social responsibility besides meeting efficient power generation goals. “Our CSR initiatives include providing vocational training to unemployed youth,” Sreedhar said.
NTPC’s Kahahlagon unit has tied up with the Central Institute of Plastics Engineering at Hajipur for providing a six-month-long training to youth, beginning next month, at an estimated cost of Rs 20 lakh. They will be equipped with skills that would help them gain employment in plastic industry, Sreedhar said. “Besides, we are providing financial assistance to young men and women aspiring for jobs in railways and banking sectors by bearing the expenditure towards their coaching. The initiative has cost us about Rs 10 lakh”, he said.
Kahalgaon unit of NTPC has also contributed to the country-wide drive for improving sanitation. “We have built 94 toilets so far while the construction of another 217 is in the pipeline,” he added.
“In addition, we have been involved in the distribution of free blankets to 3,000 destitutes and 5,000 sweaters among school children this year. Providing study material to children and equipping schools with basic amenities has also been a part of our CSR initiatives,” the group general manager added.