Recent Initiatives by PTC.
07 November 2002
Power Trading Corporation of India Limited (PTC), a relatively new player in the power sector, has started spreading its wings in the areas unknown to Indian Power Sector. PTC, for the first time in the history of Indian power sector, has started taking advantage of diversity in demand of power in various regions of country for meeting the power deficit. PTC has undertaken trading transactions for short durations with no fixed time agreement in many transactions to take advantage of seasonal or daily variations in power demand of various States. PTC has also started short durations trading ranging from one month to 7 days.
PTC, with a vision to develop a power market in the country, is continuously striving to meet the customer requirements. PTC has recently introduced 'differential pricing' concept for 'round the clock' and 'off-peak power'. This has created a market for off-peak power, which was hitherto non-existent. Due to this, customers can sell and buy power in the same time frame i.e. one can buy power in peaking period when it is power deficit and can sell power during off-peak hours when it is surplus in power. PTC has done such type of trading for Punjab and is doing the same now for Delhi. Delhi Transco Ltd. (DTL) is purchasing power from PTC round the clock and also selling power during off peak hours.
PTC, which was awaiting implementation of Availability Based Tariff (ABT), grabbed the first opportunity to trade infirm surplus power of Western Region constituents with the Southern Region (SR) constituents, as the ABT was implemented in WR in 1st July 2002. An agreement in this regard was signed by all SR constituents with PTC and trading on this account has started from August 2002.
PTC has also started trading of power from Chukha (270 MW) and Kurichhu (45 MW) projects in Bhutan w.e.f. 1st October, 2002.
In addition to the above, regular power supply from Goa to Gujarat, Punjab and Union Territory of Chandigarh; from West Bengal to Haryana and Delhi; from Uttaranchal to Delhi and Punjab, from Malana project in Himachal Pradesh to Haryana and from APTRANSCO to KPTCL is being maintained by PTC.
The trading of power helps both the parties, as on the one hand the selling party is not only able to sell its surplus power and gain financially but also improve its plant load factor or load profile which will bring stability in the system. The other party will gain by getting the power it needs without having to set up its own additional capacities to that extent.
PTC is looking forward to the commissioning of Sasaram HVDC, Rourkela-Raipur and Talcher - Kolar links for evacuation of power from Eastern Region to Northern, Western and Southern Region respectively. PTC has signed agreements with Arunachal Pradesh, DVC and WBPDCL for selling their surplus power. Power flow will commence with commissioning of above links.
PTC has also signed an MOU with M/s SMEC Ltd., developer of West Seti Hydro Project (750 MW) in Nepal through which the parties have agreed to negotiate on best endeavour basis a Power Purchase Agreement for sale and purchase of entire power and energy from the project and for onward sale to State Power Utilities by PTC. The project is likely to be commissioned in the year 2008.
With the above achievements to its credit, it is no surprise that PTC's turnover during the first 6 months of current FY has exceeded its total turnover during FY 2001-02 and the energy traded has grown to 1698 MUs as against 411 MUs during corresponding period of previous year and 1617 MUs trading during the entire financial year 2001-02. Encouraged by the success, PTC is targetting transactions involving over 4 billion units of electricity which in monetatry terms would mean around Rs. 1000 Crores.
Further, as a first step to widen its equity base to support the increase in trading volumes, PTC has signed an equity subscription agreement with Damodar Valley Corporation for subcribing Rs. 10 crores and already received application money of Rs. 6 Crores. PTC is also in touch with Financial Institutions, Banking and Investment Institutions for subscription of equity in PTC. It may be recalled that GOI has already decided to raise PTC's authorised capital from Rs. 150 Crores to Rs. 750 Crores. With DVC's subscription of Rs. 6 Crores, paid up capital will reach the level of Rs. 30 Crores. PTC plans to raise the paid up capital to Rs. 100 Crores in the current FY i.e. by March 2003. |
