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Supply deals to help CESC bridge shortfall

Calcutta, June 5: CESC is in talks with Power Trading Corporation, Adani Exports and Reliance Energy for long-term purchase contracts to tide over its peak-hour energy shortages.

The R. P. Goenka group-controlled company produces and supplies power to Calcutta. “In spite of exceptionally good generation at our Budge Budge, Titagarh and southern power stations, there is an emerging shortage. CESC is scouting for supply outside Bengal to meet the requirement during the evening peak periods,” managing director Sumantra Banerjee told The Telegraph.

The company is open to the idea of inking six-month or one-year power purchase agreements with power trading and generating companies to meet the growing demand. It needs an additional 30-40 megawatt (MW) to meet peak-period demand.

However, none of the power companies are willing to make a commitment as they have to meet demands of the northern region, which is reeling under a power crisis. Maharashtra is facing a similar predicament.

Moreover, companies are keen to sell power during peak periods as well as during the off-peak period (daytime). But CESC does not face any shortage during the daytime. At present, CESC buys only from West Bengal State Electricity Board.

The power utility has to supply 1,250-1,300 MW to meet its customers’ demand. In the last two months (April-May), CESC’s generating stations have achieved a plant load factor (PLF) of 99 per cent.

Banerjee said the high level of generation had been achieved at its power stations primarily due to uninterrupted supply of coal from the captive mine.

The captive mine meets 40 per cent of CESC’s total coal requirement and supplies the fuel when there is a delay in consignments from Coal India Limited.

The coal production at the captive mine has been ramped up to 1.8-2 million tonnes. The company has made an application to the Union coal ministry for another captive mine.

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