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Anil Sasi

New Delhi , June 13

THE Rs 26,000-crore National Thermal Power Corporation (NTPC) is vying for a parallel distribution licence for supplying power to retail consumers in Korba, Chhattisgarh. The State-owned generation utility is in the process of getting clearances from the Centre for the Korba venture to kickstart its foray into the electricity distribution business.

According to company officials, the utility, which floated a wholly-owned subsidiary for power distribution, is also planning to apply for parallel distribution licences in other areas where it has its power stations, besides Korba. NTPC has a 2,100-MW thermal power plant in Korba.

By applying for a parallel distribution licence, NTPC plans to become a second electricity distribution utility in Korba, alongside the Chhattisgarh State Electricity Board, which is now providing power. If NTPC bags a licence, retail consumers in Korba would have the choice of getting their power from either Chhattisgarh State Electricity Board or from NTPC's subsidiary. The Electricity Act 2003 allows utilities to apply for multiple distribution licences in various distribution circles, thereby ensuring consumers a choice of electricity service providers.

Also, NTPC is in the process of applying for the distribution circles in Gujarat and Mangalore, Karnataka. "We are in the race for distribution circles in Gujarat. In the case of Uttar Pradesh, we have decided to opt out due to a number of reasons, including differences in work ethics of NTPC and the Uttar Pradesh Power Corporation Ltd (UPPCL)," a senior NTPC official said. The Uttar Pradesh and Gujarat governments had called for bids from utilities interested in taking over distribution of power.

The company is also in advanced stages of carrying out due diligence in Karnataka's Mangalore circle and is planning to pick up a 51 per cent stake in Mangalore Electricity Supply Company Ltd, officials said.

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