Bihar will no longer take 832 MW electricity from Kahalgaon-Farakka thermal, will surrender on Saturday night

Patna. Bihar State Power Holding Company has surrendered 832 MW power of Kahalgaon and Farakka. From 12 midnight on Saturday, power companies will not take 345 MW electricity allocated to Bihar from NTPC’s Kahalgaon Power Plant in Stage One and 487 MW electricity allocated from two units of Stage One of Farakka Power Plant. After the permission of Bihar Electricity Regulatory Commission, the power companies have informed NTPC about this. NTPC spokesperson Vishwanath Chandan said that NTPC will offer the surrendered power to other allottee states after the permission of the Union Power Ministry. If approval is not received, this cheap electricity will be offered in the open market.

On average electricity was available at only Rs 4.16 per unit

Electricity companies were getting electricity from these units of Kahalgaon and Farakka at an average rate of Rs 4.19 per unit. Despite the power being cheaper than other units of NTPC, the plant’s power was surrendered. The company’s logic behind this is that in the current financial year itself, the availability of electricity will become surplus if the new units of Barh, Buxar and North Karanpura are commissioned. In such a situation, if electricity is not taken as per the agreement, the company will be obliged to pay the fixed cost. Under normal circumstances, they are getting cheaper electricity from other units or from the market.

Quota allotted to Bihar from NTPC will reduce

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With the surrender of 854 MW power, the power quota currently allotted to Bihar from NTPC will be reduced to only 6169 MW. In such a situation, there will be no problem in winter, but there may be problem in summer due to increase in demand. At present NTPC has allocation of 7001 MW power from units located in other states including Bihar. There is also talk of de-commissioning of two units of 110-110 of Barauni Thermal Power Plant in future. Correspondence regarding this is going on between the Energy Ministry, Energy Department of Bihar Government and NTPC.

Steps taken after the end of the agreement period

In fact, an agreement was signed between NTPC and the power company in July 1985 for the electricity to be supplied to Bihar from these units. This agreement completed 25 years in July 2021. The Energy Ministry had issued a circular in March 2021, giving power companies the freedom to exit from those agreements which have completed 25 years. On the basis of this, Bihar State Power Holding Company had filed a petition in the Regulatory Commission in March 2022 demanding permission to cancel the agreement. In April 2023, the Commission approved the petition.

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