Government's spree on policy declarations and single window installations apart, the days are refusing to turn sunny for independent power plants (IPPs) in Jharkhand. Both the major private power contributors in the otherwise pitiful power kitty of the State-Inland Power and Adhunik Power-are fuming over failed promises and lack of support.
The erstwhile Jharkhand State Electricity Board or one of its new avatars meant for energy generation is sitting on unpaid power bills of whopping Rs70 crore and counting of Inland Power; running its 126 MW power plant at Tonagatu of Gola in Ramgarh district.
“We started supplying power to the State Government since May 2014 and incur bill of Rs12 crore every month against 55 MW to 58 MW of power supply every day. But we are paid just about Rs10 crore for a month and that also from very recently. The arrear would reach beyond Rs70 crore if we add DPS (delayed payment surcharge) into it,” said a senior official of Inland Power narrating the predicament.
Even the Jharkhand State Energy Regularity Commission in its order in August has directed the Government to clear the dues while slapping penal interest at the rate of six per cent. This is in spite of the Energy Policy adopted by the Government clearly speaking about additional benefits to the power generators who would use alternate source of energy or other forms of fuel residues as recycled source.
“We use coal to fire our plant but substantial part of the fuel also comes from coal rejects of coal washeries and also in the form of dolochar, a residue from sponge iron industry. The plant consumes washery reject that otherwise would have been flown away into the Damodar making it dangerously polluted,” added the official requesting not to be named.
Similar is the case of Adhunik Power, which is already bleeding under financial distress and pressure from bankers. “We have to chase them a lot for the payments. Payments do not come in normal way. Besides, we are also living with much graver noncooperation from the Government,” said a vice-president level official of the company that supplies 122 MW of crucial power every day to the State that often saves it from going blackout.
The company had signed a Memorandum of Understanding with the Government to set up a 1,080 MW coal-based thermal power plant at Padampur and Srirampur in Seraikela-Kharsawan district. Its two units have achieved commercial operation but had to lose Ganeshpur coal block allocated to it due to the much talked about coal scam.
“We require about 8,000 tonne of coal per day. Though, linkage with CCl has been given through e-auction route but that does not meet our demand and we have to depend on imported coal from Australia and Indonesia which costs us dearer. We have requested the State Government to provide a linkage with Sikni coalfield under the JSMDC and also to recommend to the Centre for 100 per cent linkage but for no heed so far. Our expenditure is leaping every day,” added he.
Adhunik Power had recorded fuel expenses of Rs45.67 crore during the financial year 2013 when both units were commissioned which has now jumped to Rs601.24 crore in the FY 2014. In 2013-14, the plant gathered net loss of Rs151.08 crore.
Pvt power plants near to tripping under Govt dues
With lower plant load factor, poor rating and bad financial health, bankers have started pushing the debt-ridden power generator to sell its thermal power plant in Jharkhand.
“Hostility does not end here. We have applied to the State Government to purchase additional 250 MW of power readily available with us under the power purchase agreement but of no help. In this case, our units are not able to run on their full capacity,” said the official.
Energy Policy, besides restructuring Government owned plants, also talked about red carpets for IPPs and to provide the investors with land, water and other clearances required. But big names like Essar Power, Corporate Power, Reliance Power, JSPl etc are sitting idle after making huge investments.
“We have been told for no further investment unless we get all the clearances. Financers have raised their hands,” said an official of Essar Power whose 1800 MW plant is near to 'ready to fire' stage at Chandwa.