NTPC enters power distribution

The National Thermal Power Corporation (NTPC), has forayed into the power distribution business. The public sector undertaking is also setti...

The National Thermal Power Corporation (NTPC), has forayed into the power distribution business. The public sector undertaking is also setting up plants in one region to supply power to other regions.

Confirming these two changes in corporate strategy, the chairman and managing director of NTPC C.P. Jain told The Indian Express that on the power distribution front, they had applied for a second license in the state of Chhattisgarh where they would supply power to the local area adjoining their upcoming 500 MW Korba thermal power station.

Jain said that Talcher, a plant in the eastern region, would be supplying power to the southern region. Added to that, projects such as Barh (1980 mw) and Kahalgaon (1500 mw) in Bihar would be supplying to states located in western as well as in the nothern region.

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At present power allocation from NTPC’s existing stations follow the Gadgil formula which defines the entitlement of power for states in a region.

As per the formula of power sharing, in case of central sector regional thermal power projects, 15 per cent of the capacity was kept at the disposal of the Centre. Ten per cent was allocated to the state in which the project is located. Out of balance, half was allocated in proportion of energy consumption and the remaining half in proportion of plan assistance received from the Centre.