Assam, Meghalaya flag high tariff, refuse extra power from Subansiri, Pg11

Key Highlights:

• Assam and Meghalaya declined to purchase additional power from the Subansiri Lower hydro-electric project due to high tariffs.
• The North Eastern Regional Power Committee (NERPC) held a meeting last month where the states expressed their concerns.
• Punjab State Power Corporation Limited (PSPCL) had earlier refused its share of 16 MW from the project.
• The Subansiri Lower power tariff is projected to increase from under Rs 2 per unit (2009) to over Rs 7 per unit (2026).
• The project's cost has escalated from Rs 6,285 crores (2002) to approximately Rs 26,000 crores due to delays and other factors.
• Three of eight 250MW units of Subansiri Lower have commenced commercial operation.

Detailed Insights:

• The Subansiri Lower hydro-electric project, initially conceived as India's largest, faced suspensions between December 2011 and September 2019 due to local resistance and court cases regarding dam safety and ecological concerns.
• Half of the power generated by Subansiri Lower is allocated to the north-eastern states, including 22% through 'firm' allocation, 13% as free power, and 15% through the unallocated central share.
• Meghalaya is expected to receive around 200MW from its own Leshka Stage-II project, while the 210 MW Myntdu Leshka Hydro Electric Project Stage-II is expected to be commissioned in 2027.
• Assam's allocated share from Subansiri Lower is 78 MW (10.4%) with an additional 7.5MW (1%) as free power, while Meghalaya's firm allocation is 19 MW (2.5%).
• The NERPC has requested Assam and Meghalaya to present their justifications to the Central Electricity Authority (CEA) and the Ministry of Power for consideration.
• Assam has communicated to the NERPC that the Assam Power Distribution Company Limited (APDCL) has already established power purchase agreements with upcoming plants to fulfill its long-term power demand.

Key Concepts Involved:

• Hydro-electric project: A power plant that uses the energy of moving water to generate electricity.
• Power Purchase Agreement (PPA): A contractual agreement between two parties, one generating electricity and one purchasing it.
• Tariff: A tax or duty to be paid on a particular class of imports or exports.