PTC achieves estimated net profit of Rs. 7.5 crore during 2001-02
02 April 2002
Power Trading Corporation of India Ltd. (PTC) wrapped up the year 2001-02 on a significant note by registering a net profit of around Rs.7.5 crores on a Rs.350 crores turnover. The company, with a lean manpower and an equity base of Rs. 24 crores, traded 1630 MUs of energy in FY 2002, surpassing its target of 1500 MUs that was set for the year. A proposal for restructuring, strengthening and diversifying PTC's capital base is under consideration of Government of India.
The trading volume this year indicates that power trading will be a fast emerging segment of the Indian power sector. Though power trading on a sustained basis commenced only in the third year of PTC's business, its operations now cover four out of the five electricity regions and PTC now has almost 15 % share in the total inter-regional transactions in the country.
Sustained trading began in June 2001 and presently about 600 MW is being traded by various state power utilities including IPP through PTC. Major ongoing transactions are 160 MW power from West Bengal to Delhi and Haryana, 70 MW from Himachal Pradesh to Delhi (Malana Hydro power), 50 MW power from Goa to Gujarat, 25 MW from Goa to Karnataka, 100 MW power from Chhattisgarh to Karnataka, 100 MW peaking power from Chhattisgarh to Delhi and 50 MW from Uttaranchal to Delhi.
Viability and success of any transaction depends on the continuous stream of payment flow from the buyers to the sellers. PTC has been able to provide value-added, custom-built services to its clients through a reasonable but simple weekly billing system, without any state government guarantee or escrow cover. Buyers and sellers countrywide increasingly prefer to avail the services of PTC, as it is a 'win-win' situation for all. Whereas at one end, sellers of power are looking at the opportunity costs they can charge to improve their financial/operational efficiencies, buyers are looking at options to diversify their portfolio of supply sources to get the most affordable tariff to meet their burgeoning demand, and PTC provides the right choice to them.
To increase its trading activities in future, PTC is actively pursuing many more offers from States having surplus power and is targeting the surplus power available with captive power plants (CPPs), seasonal surpluses with SEBs and also looking at opportunities to pool power from distributed generation viz., wind power plants, co-generation and small hydro power plants.
There is a vast potential for regional energy cooperation in South Asia. Nepal and Bhutan can offer India competitive hydropower. PTC will be the nodal agency for power exchange between India and its neighbours and can play a crucial role in identifying and seizing such opportunities that will help in optimal utilization of existing resources in the region. The purchase and sale of power from Chukha and Kurichhu hydroelectric projects in Bhutan is likely to be transferred to PTC shortly whereas PTC has already been notified as the nodal agency for exchange of power between India and Nepal.
PTC is also involved in catalysing development of Mega Power Projects and several other projects. Mega projects would also help the reform process, as states would be attracted towards advantages of this cheaper source of power. One of the major issues in the development of the large-sized projects such as 3960 MW Hirma in Orissa, 1850 MW Ennore in Tamilnadu, 2000 MW Pipavav in Gujarat etc. is a bankable payment security mechanism, which is presently under consideration of Government of India. In view of the unforeseen delays in the development of such projects, PTC has given a major thrust towards small and medium sized projects, a number of which have been short listed on the basis of technical feasibility and tariff.
There is scope for substantial increase in quantum of trading. However, many of the transactions are hindered due to the constraints like lack of transmission flexibility, poor paying abilities of SEBs and poor distribution and supply systems. Looking at the current status of the Indian Power Sector, establishment of power market here would be rather a slow process and having something like spot market will take a long time.
However, Central and State governments have been attempting power sector reform measures to improve conditions for more efficient and reliable supply of power and for commercialization of the sector. Electricity Bill 2001 seeks to introduce features such as delicensed generation, open access to network and appointment of distribution licensees and trading has been identified as a distinct activity. These enabling provisions in Electricity Bill 2001will help towards formation of power market in the country.
One of the mandates for PTC is to develop a full fledged, efficient and competitive market mechanism for trading in power, resulting in reliable, economic and quality power in the long-term. PTC is moving ahead with an air of high expectations and hopes to prove successful in their quest. |
