Cost-plus cover for NTPC stymies power sector revival


Cost-plus cover for NTPC stymies power sector revival

Even as a dearth of new power purchase agreements is stalling many under-construction and existing private power units, the virtually exclusive regime of cost-plus tariffs for the state-run NTPC is further undermining their ability to commence operations or operate at higher capacities.

In the latest instance, NTPC’s sourcing of coal from mines located 1,100 km away in Jharkhand for its 1,200 MW Khargone plant in Madhya Pradesh is seen to raise its fuel cost, resulting in many states, including MP, having to pay the state-run firm despite them not sourcing electricity from the unit. Read More

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