Ranchi, Jan. 25: The state's oldest thermal power plant, Patratu Thermal Power Station (PTPS) in Ramgarh, has been forced to die a natural death for economic reasons.

The focus is now on getting the new thermal power units under the joint venture company between NTPC and the state operational on time, the first deadline being 2020.

The decision to shut down PTPS became effective from yesterday but Rahul Purwar, MD of Jharkhand Bijli Utpadan Nigam and Jharkhand Bijli Vitaran Nigam, the state's power generating and distribution companies, refuted the possibility of any power crisis due to the decision.

Jharkhand needs 1,200MW power on an average daily.

Of the 10 PTPS units, six Russian-aided ones were commissioned between 1966 and 1972 and the rest set up by Bharat Heavy Electricals between 1977 and 1986.

Calling the shutdown an economic decision, Purwar said: "Ten units comprise PTPS, with a total installed capacity of 840MW. But on any average day, barely one unit works with average generation of 60-80MW. The cost of power generated was Rs 6 per unit while NTPC, which is running PTPS under a joint venture pact, is willing to supply us 150MW at Rs 3.50 a unit."

Purwar pointed out that an MoU was signed between the state and NTPC on May 3, 2015, to set up a 4,000MW greenfield project and revive the aging Patratu plant. For this, Patratu Vidyut Utpadan Nigam Ltd (PVUNL) was floated as a joint venture company between the state's JBVNL and NTPC on October 15, 2015. While JBVNL holds 26 per cent stake, the power giant holds 74 per cent.

Since NTPC is financing the 4,000MW greenfield project, and the state, while providing land and water linkages, is participating in a cashless equity, Purwar said they could no longer ignore the economics in Patratu.