Pranab Mukherjee’s announcement on granting basic customs duty exemptions on fuels like coal, LNG and natural gas for power generation has come as good news for the state power generation utility.
Finance minister Pranab Mukherjee’s announcement on granting basic customs duty exemptions on fuels like coal, LNG and natural gas for power generation has come as good news for the state power generation utility.
The power utility said it would be able to ramp up its generation efficiencies and ensure that benefits percolated to consumers.
Of its annual coal requirement of over 40 million metric tonnes (MMT), the Maharashtra State Power Generation Company Limited (MahaGenco) imports around 3.35 MMT coal.
The MahaGenco has a 9,737MW installed capacity, consisting of thermal power (6,480MW), hydro power (2,585MW) and gas (672MW).
“The exemption on basic customs duty on coal will lower the cost of production,” pointed out a senior energy department official, adding that the MahaGenco blended imported coal with domestic coal as a sweetener for better generation.
He added that proposals like extension of the sunset date for power sector undertakings for claiming 100% deduction of profits for 10 years and additional depreciation being extended to new assets would help the sector at large.
“This will reflect in the lower costs of power and so, the consumer will benefit,” he said.
A senior MahaGenco official said the reduction in duties would help decrease the costs of fuel imports, which in turn could be passed on to consumers.
The utility, which has 672MW in gas-based power generation at the Uran plant, is facing stranded capacity due to lack of adequate gas supply.
The plant was able to generate just 323MW on Friday. The official said the proposals would help reduce gas prices for such stranded capacity.
The MahaGenco plans to bring 750MW on steam this financial year, the official said, which included a 500MW set at Bhusawal and 250MW set at Parli.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}