(a) the details of the fuel used in power generation in the country at present;
(b) the estimated average cost of power generation during 2003-2004 in respect
of various projects in the country as a result of using each kind of fuel;
(c) whether the Government have explored the possibilities of lowering the
cost of power generation in the country; and
(d) if so, the details thereof?
THE MINISTER OF POWER ( SHRI P.M. SAYEED )
(a) to (d) : A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF
STARRED QUESTION NO. 416 TO BE ANSWERED IN THE LOK
SABHA ON 24.08.2004 REGARDING USE OF FUEL IN POWER
GENERATION.
(a) & (b) : Coal, lignite, Natural gas, Liquefied Natural Gas and liquids fuels
(LSHS, HFO, Naptha, HSD etc) are different types of fuels used in India for
power generation.
The cost of generating power varies from station to station depending upon
the capital cost, technology used, fuel, size of plant, location etc. The average cost
of generation for NTPC plants from different fuels in 2003-2004 is given in
Annexure.
(c) & (d) : A number of steps have been taken for reducing the cost of power
generation. The Electricity Act, 2003 creates a competitive framework for
generation which should exert a downward pressure on costs. The following
fiscal concessions have been provided with the objective of lowering the cost of
generation:
(i) Exemption in Customs Duties for setting up Mega Power Plants.
(ii) Exemption on Central Excise Duty/Counter Vailing Duty (CVD) on Naphtha used as fuel for generation in respect of 12 power projects. Exemption on Central Excise Duty / CVD on Low Sulphur Heavy Stock and other specified liquid fuels used for power generation.
(iii) The Government has recently reduced custom duty on coal from 25% to 15%.
Captive coal mining for thermal power projects is being encouraged with a view to lowering the cost of fuel for coal fired stations.
Sl. No. Station Cost of energy Rs/Kwh
1. Coal Stations-Pit Head 1.16 2. Coal Stations-Non Pit Head 1.75 3. Average cost for Coal Station 1.27 4. Gas Based Generation 2.30 5. Naphtha Based Generation 3.64
Source: NTPC