Neighbours’ power-buying spree hurts Karnataka
State in desperate straits as others rush electricity market, expecting poll-bound north to splurge
The crucial elections to five northern States including Uttar Pradesh, to be held next year, has triggered a fierce race for 'power' among four major States in south India.
Anticipating heavy demand for power among the States in the north ahead of the elections, Karnataka, Tamil Nadu, Andhra Pradesh and Kerala have begun aggressively bidding for power purchase.
The southern States, which are already reeling under severe power crisis, desperately want to buy power so that they can cope with the coming summer months, when the demand for power will shoot up.
“It is just the beginning of the purchase season. Our neighbouring States of Andhra Pradesh, Tamil Nadu and Kerala have started fiercely competing with Karnataka to buy power because of elections to five States in the north. The heavy demand for power among the four States is likely to shoot up the price at the power exchange in the coming days, and it is expected to reach up to Rs 12 per unit in coming months,” Karnataka Energy Minister Shobha Karandlaje said.
Besides Uttar Pradesh, States of Punjab, Uttaranchal, Goa and Manipur are likely to go to polls in 2012. The big States like UP and Punjab are said to have big plans to purchase power to ensure proper supply to the citizens there ahead of the elections.
Official sources said all four southern States have recently bid to purchase power from Jammu & Kashmir. Southern States are even ready to pay up to Rs 6 per unit. This is something unheard of in the recent years. And the southern States want to buy power in the north despite the severe crisis of transmission corridors, sources added.
Karnataka, which wants to purchase about 1,200 mega watt of power to cope with the likely power crisis in the coming summer months, had bought 150 MW from Chhattisgarh at Rs 4.72 per unit nearly two months ago.
Rising price
On Friday, it bought 680 MW of power from Jindal at Rs 5.60 per unit - nearly one rupee more. And the price is expected to skyrocket in the coming days. Last year, Karnataka had paid an average of Rs 4.93 per unit, officials said.
Foreseeing the high cost of power, Karnataka government dropped its plan to provide six hours of three phase power supply in rural areas in the current financial year.
Last year, the government supplied six hours of three phase supply as power was available at Rs 4.72 per unit. It had bought a 7,815 MU of power at the total cost of Rs 3,898 crores last year for this purpose.
Lack of proper coal supply to thermal power generation plants couple with severe drought situation has worsened the power situation in south. The situation is expected to deteriorate once mercury level starts rising in coming weeks. In Karnataka, the power utility is presently struggling to bridge the demand supply gap.
While the demand is 160 million units, the supply, including power that is being purchased, is only around 130 MU.
Corridor problem
Besides, the south is facing the problem of power corridor. Though the states are buying power paying high cost, transmission corridors not available for them. For instance, Karnataka has been able to get only around 77 MW of 150 MW available from Chhattisgarh in December.
Official sources said the southern States have been isolated from the rest of India in terms of power corridors. The South has been provided with High Voltage Direct Line (HVDC), which has fixed frequency.
But in north, Alternative Current Line (ACL), which changes frequency automatically depending on the load, is available. Under HVDC, if the frequency is fixed for 500 MW, it cannot be changed. And, Andhra Pradesh has dominated these lines in south with the help of the Union government, officials explained.
