The Hindu Business Line : NTPC, Tata Power, APGenco to perk up operations of less efficient plants

The three will act as "lead partners" of SEBs and deploy their employees at the SEB stations for bringing in better management practices aimed at improving overall operational efficiency.
While the national average PLF for thermal stations was around 66 per cent last year, the trio of NTPC, APGenco and Tata Power have been operating stations at much higher efficiency levels.

New Delhi , Feb. 10

A FORMIDABLE trio comprising NTPC Ltd, Tata Power and the Andhra Pradesh Generation Company (APGenco), the State-owned generation utility of Andhra Pradesh, has been roped in by the Government to perk up the performance of the country's less efficient power plants.

Under the arrangement, NTPC, APGenco and Tata Power would act as "lead partners" of State electricity boards (SEBs) and deploy their employees at the SEB stations for bringing in better management practices aimed at improving overall operational efficiency. Partnership arrangements have been finalised by the three players for 26 power stations coming under various SEBs where the plant load factor (PLF) is below 60 per cent.

Of these 26 stations selected in the first round, 16 power plants have been allocated to NTPC Ltd, while the remaining stations are likely to be divided between Tata Power and APGenco. NTPC has already deployed its officials at most of these stations allocated to it, Government officials involved in the exercise said.

Efficiency: While the national average PLF for thermal stations was around 66 per cent last year, the trio of NTPC, APGenco and Tata Power have been operating stations at much higher efficiency levels.

NTPC has consistently recorded among the highest operational efficiency benchmarks in the country, with a PLF of 87.31 per cent during the first quarter of this fiscal; APGenco achieved a record PLF of 89.7 per cent in 2004-05.

Tata Power operated its Trombay and Jojobera stations at PLFs of 81.63 per cent and 72.38 per cent respectively during the period.

The efficiency benchmark for thermal generation in the developed countries is around 80 per cent PLF.

Expertise: A Power Ministry official said that combining the expertise of a Central utility, a State utility and a private player was aimed at optimising the best practises being followed by players across the generation spectrum.

"The low PLF in most SEB stations is mainly due to the poor `availability' of plants due to the poor condition of equipment and resultant shutdown of operations. We are providing hands-on expertise to the SEBs on how best to operate the equipment and have deployed NTPC staff at key positions in these stations. The arrangement is purely a non-commercial one as NTPC is not charging any of the SEBs for the work being done," an NTPC official said.

The scheme is being funded by the Centre under the Accelerated Generation and Supply Programme (AG&SP), under which an interest subsidy of Rs 1,500 crore has been provided to the State sector for renovation and modernisation (R&M) of projects.

According to Government estimates, the renovation and modernisation of SEB generating stations could make available about 4,500 MW of generation capacity if the under performing stations are made to operate at PLFs of 70 per cent.

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