Vidyut Vyapar Nigam aims to sell 8bn units of electricity

PTI New Delhi | Updated on October 30, 2012 Published on October 30, 2012

NTPC Vidyut Vyapar Nigam (NVVN) on Tuesday said it is looking at selling close to eight billion units of electricity, same as the last fiscal, in 2012-13.

“Last (financial) year, we sold 8 billion units, this year we are hopeful we would touch 8 billion units,” said Anil Kumar Agrawal, CEO of NVVN — the power trading arm of state-run NTPC.

These units comprise electricity from various sources of energy, including solar, thermal and hydro.

“At present, the per unit price of power being sold by us is Rs 4 and it would remain so for some time,” he told PTI.

The company, which had last year registered revenues of Rs 40 crore, expects to earn similar amount in this financial year as well.

“Last fiscal, our revenue was Rs 40 crore, hopefully it would be the same this year,” he said, adding that the company has already sold 3.5 billion units from April till now.

Asked whether financial health of distribution companies is a cause of worry for power trading firms like NVVN, he said, “Yes, it is a cause of worry because we are not sure of the returns.”

The government has approved restructuring of Rs 1.9 lakh crore debt of State Electricity Boards, but still the power firms feel that it is not sufficient.

“It (restructuring package) will be helpful in the short term but not so much in the long term,” Agrawal said.

Under the scheme approved by the Cabinet Committee on Economic Affairs, 50 per cent of the short-term outstanding liabilities would be taken over by state governments.

This shall be first converted into bonds to be issued by discoms to participating lenders, duly backed by the state government’s guarantee.

Balance 50 per cent loans would be restructured by providing moratorium on principle and best possible terms for repayments.

Published on October 30, 2012
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