Home states to get 50% power allocation from nuclear power projects

Home states to get 50% power allocation from nuclear power projects

Following Cabinet approval, allowing 50% of power generated by CPSU stations to be reserved for home states, the Ministry of Power (MoP) has now officially directed the Department of Atomic Energy (DAE) to also do the needful and keep aside half of the generation from Nuclear Power Corporation of India Limited`s (NPCIL) power plants for their respective home states.

• Besides, other regional constituents will have right to 35% of power from NPCIL-run plants, while the balance 15% will remain unallocated at the disposal of the Union Government.
• This revision in the Gadgil formula for power allocation from CPSU plants had to be made to ensure the support of the home states, which often shy away in providing the crucial land, water and other clearances for the power projects.
• As per the Gadgil formula, out of the total generation from a particular central government-run power station, the home state share was limited to 10% as a preferential allocation, 75% was allocated to all the beneficiary states according to their energy needs and Central Plan Allocation, and 15% was kept unallocated at the disposal of the Central Government.
• This system had been in place since the inception of the central public sector and was devised at a time when the entire power sector was dependent upon the Center for investments.
• To note, the DAE is a Department under the direct control of the Prime Minister of India with its headquarter in Mumbai. The Department is responsible for nuclear technology, including nuclear power and research.

NTPC to allocate 50% of 14 upcoming plants to home states

Subsequent to Cabinet approval, allowing 50% of power generated by CPSU stations to be reserved for home states, the Ministry of Power (MoP) has now officially accepted NTPC`s incremental power allocation demands for the home states of 14 upcoming power ventures.

• Accordingly, while half of the share of these power plants will be kept aside for their respective home states, other regional constituents will have right to 35% of power, leaving the balance 15% to remain unallocated at the disposal of the Union Government.
• This new power allocation matrix will apply to these projects-- the 2,640 MW Gadarwara, 4,000 MW Lara, 1,320 MW Talcher Expansion, 4,000 MW Kudgi, 3,200 MW Darlipalli and Gajmara, 2,640 MW Gidderbaha, 1,600 MW Katwa, 1,980 MW Dhuvran, 1,320 MW Khargone, 4,000 MW Pudimadka, 1,320 MW Bilhaur and 500 MW Kathua TPPs.
• In case of NTPC`s 3,960 MW Barethi project in the Bundelkhand region, the home state`s share will go to Madhya Pradesh, while Uttar Pradesh will be entitled to the entire 35% share remaining for regional beneficiaries.
• NTPC has been long petitioning the ministry to be allowed to deviate from the existing Gadgil formula to ensure the support of the home states, which often shy away in providing the crucial land, water and other clearances for the power projects.