Steel cos' surplus can meet State's power need

JVSL in Bellary sells to other states 700 MW of 1,100 MW of energy it generates every day

Steel cos' surplus can meet State's power need

The Jindal Vijayanagar Steel Limited (JVSL) near Toranagal in Bellary generates 1,100 MW of power every day. After utilising 400 MW, the company sells 700 MW to Andhra Pradesh, Tamil Nadu, Maharashtra and even to Punjab. The power is supplied to other States through Karnataka’s grid.

However, the State government has not evinced any interest in buying the power from the steel company which could help in ending the dark days in the State.

Opposing the Chief Minister’s statement to purchase power at Rs 10 per unit from other States, Dr Vinod Naval, Director, JVSL said through comprehensive planning and by inking long-term agreement with the company, State could purchase power at Rs four per unit.

However, Vinod said the government could purchase power from JVSL on a regular basis and should not demand power during non-monsoon or during deficit. The company will increase the power generation by another 600 MW in a few days, he added.

The JVSL is selling power to other States at lower rates but there is a loss of 200 MW in transmission. Therefore, it could be a win-win situation for both State and company if the former purchases the power from JVSL. The State would get power at low prices while there will be no loss of power for the company.

Similar to the thermal power stations, steel companies too burn coal to produce steel. The heat generated during the production process is used by the companies to produce electricity.

Thus, the steel companies not only meet their power requirements but have surplus that can be sold.

Other steel companies in the State too produce power. By having purchase agreements with such companies the government could go a long way in solving the power crisis in the State.

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