Govt to stop buying Reliance power

PTI, PANAJI | 01 February 2013 20:51 IST

Goa government will stop buying power from the Reliance Power Plant from the coming financial year due to high tariff, Chief Minister Manohar Parrikar told the state Legislative Assembly today.

The power purchase agreement entered with the plant will end on August 13, 2014 and it will be reviewed, Parrikar said.

"Before that we will stop buying power from them from the next financial year as the tariff charged by them is high," the Chief Minister said.

State Power Minister Milind Naik, in a written reply on the floor of the House, stated that as per the provisions of the power purchase agreement and subsequent agreements, the Goa government is required to purchase 19.8 MW power out of 48 MW generated by the plant.

"However, as this power is costly, the electricity department restricts the purchase to about 12 to 16 MW during various time periods of the day. The average cost of this power from January 2011 to November 2012 is Rs 12.74 per KWh," the Minister said.

Naik said that the Reliance power plant is allowed to sell the balance power from 48 MW directly to the consumers approved by government, as per the provisions of the power purchase agreement.

Responding to a question by Congress legislator Aleixo Lourenco Reginaldo in the House, Parrikar said the state government will have to arrange power for the industrial units which buy directly from Reliance power plant, as the plant could shut down after government stops buying power.

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