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Web Exclusive | July 2013

CESC plant at Chandrapur may hit by weak demand

Lack of demand for electricity may impact viability of the upcoming 2X300 mw Chandrapur thermal power station of Kolkata-headquartered CESC Ltd. Located in Maharashtra, the Rs 2,800-crore project is scheduled for commissioning this year. The plant may take a year CESC Chairman Sanjiv Goenka said in Kolkata on July 26. The first 300 mw unit of Chandrapur is nearing completion and will be commissioned shortly.

The company has so far been able to enter into only one power purchase agreement with the Tamil Nadu State electricity distribution utility for 100 mw daily supplies at Rs 4.91 a unit. Running the plant at low capacity is not a viable option either, as larger parts of the fixed costs may remain unrealised from the 100-mw power sales to Tamil Nadu at a an agreed tariff.

Incidentally, while CESC is projecting a rise in peak demand in the city to 3,000 mw over a period of five years, the company witnessed a one per cent drop in overall electricity demand in the April-June 2013 quarter. Electricity sales have remained stagnant in the last fiscal.

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