The Hindu Business Line : Karnataka plans to buy power to meet shortfall

State Government officials said discussions were under way for purchase of at least 300 million units per month till April to overcome the shortfall. The State-owned distribution companies also have private sector traders in addition to PTC, the sources added. Power traders transact at least 15,000 MU per year, and PTC controls a little over half of the trade.

However, tariff is emerging a major stumbling block. Peaking tariff quoted was about Rs 6.25 per unit. The sources said that even after calling for bids from power traders, the tariff differential quote was barely five paise a unit.

In fact, States such as Andhra Pradesh, Punjab and Maharashtra were already lifting base load requirements at over Rs 4 a unit.

Peak deficit

Karnataka's daily power requirement at present is about 105 MU. But the availability is about 80 MU, inclusive of purchases from the central sector. Even at current levels, when irrigation demand has still not picked up, sources said, there was an 8.5 per cent peak deficit (the maximum deficit during a particular period of time during the day) and a 2 per cent base deficit.

Beginning next month, the situation is likely to worsen when irrigation demand picks up.

There are currently about 16 lakh irrigation pump-sets in the State. Specific consumption is estimated at around 6,500 units per annum.

This would translate into annual consumption of over 10,000 MU.

Accordingly, State Government officials said the irrigation demand was likely to push up the energy requirement to about 140 MU per day in the State.

Availability from the hydel reservoirs is also expected to drop. Current hydel storage levels are already below last year's levels on account of overdrawing. The water level in the Sharavathy Valley, which comprises the mainstay of hydel power in Karnataka, was down to 548 metres as on January 8, 2007, as against 551 metres during the corresponding period of the last financial year.

Plant load factor

Thermal generation was operating at a plant load factor of 93 per cent and feeding approximately 36 million units in the grid. But the sources said despite this high thermal generation and alternative supplies, the State was likely to face a peaking deficit in excess of 10 per cent on account of the irrigation load. Base load deficit in the summer months is estimated at over 40 million units, on the basis of current levels of generation, the sources added.

The options, therefore, were to either resort to power shutdowns in the urban areas to accommodate irrigation demand or make high cost purchases through power traders. The State government's subsidy bill was expected to escalate as a result. For the current financial year, the estimated subsidy for the farm sector is Rs 2,435.51 crore. This figure could face slippages, they added.