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Forum Name : NTPC's proposal to pool tariffs across its coal based stations      Bulletin Board Home

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Arup Roy Choudury's price pooling proposal: Why it won't succeed? 18 July 46358 (08:45 PM)
NTPC Chairman Arup Roy Choudhury has proposed pooling of tariffs across all NTPC coal based power stations as a measure to increase the offtake of power by various distribution utilities.While Choudhury is of the opinion that bundling of tariff across power stations will help bring down power tariff and increase sales, the strong resistance from states enjoying much lower tariffs currently can actually result in the proposal being stalled. Three possible methods of pooling suggested by Choudhary include single pool tariff by pooling tariff across all NTPC coal based power stations, pooling allocated firm power and unallocated power across all stations separately for two separate pooled tariffs or pooling of tariffs across all station in a particular region. However, if an analysis of the benefits accruing to the states from all the three possible scenarios is done, it will be seen that only very few states, like Delhi and West Bengal, are the only beneficiaries.In fact, all the western region states will be made to pay a higher price for procuring NTPC's coal based power under all the three scenarios. Electricity being a concurrent subject requiring states' approval as much as centre's approval, it is unlikely that NTPC will be able to get the nod from states which are expected to pay much higher for the same electricity for benefits of other states.
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