THE MINISTER OF POWER ( SHRI P.M. SAYEED )
(a) & (b) : NTPC`s Kayamkulam Plant was shut down from July, 2004 till
December, 2004 for want of schedule from Kerala State Electricity Board (KSEB) and
Tamil Nadu State Electricity Board (TNEB) who have been allocated 50% capacity each.
The station was restarted from 6.1.2005 when the schedule of 160 MW was given by
TNEB.
(c) & (d) : The Power Purchase Agreement (PPA) with Kerala State Electricity
Board (KSEB) for supply of power from NTPC`s Kayamkulam Station (360 MW) has
been valid till 28th February, 2005. As per the provisions of PPA, the terms and
conditions of the PPA shall continue to be valid even after 28.2.2005, if power is availed
by KSEB from Kayamkulam. However, NTPC has already taken up with KSEB for
extension of PPA beyond 28.2.2005.
(e) & (f) : Request was received from Government of Kerala/KSEB for review of
fixed cost on account of restructuring of loans.
In this regard, the details of interest on loan component of fixed charges
of Kayamkulam considered in Central Electricity Regulatory Commissions` (CERC)`s
approval tariff for the period 2001-04 are as under:
Sl.No. Particulars 2000-01 2001-02 2002-03 2003-04
1. Rate of Interest 7.07% 7.05% 6.98% 7.12% as per CERC tariff order
2. Revised rate - 7.05% 6.87% 6.75% after considering impact of floating rate (as charged to KSEB)
In the tariff petition filed with CERC for determination of tariff for the
period 2004-09 as per the CERC Regulation 2004 after giving due benefits of the reduced
interest rate on loan, the rates of interest considered for working out interest on loan
component for fixation of tariff of Kayamkulam for the period 2004-09 are as under:
Sl. No. Particulars 2004-05 2005-06 2006-07 2007-08 2008-09
1. Rate of 6.49% 6.21% 6.02% 5.99% 5.99% Interest on loan
Thus, it may be observed that the rate of interest, which is 6.49% during
2004-05, will be reducing gradually and become 5.99% during the years 2007-08 and
2008-09 respectively.
The approval of tariff of central generating companies like NTPC is with
the CERC, and therefore the appropriateness of the fixed cost and variable cost is
determined by CERC.
