Make policy changes to make open-access in power a reality:

Urging for policy changes to make open-access in power sector a reality as lack of long term power purchase agreements is hurting commissioning of thermal power plants, India Power chairman said here today.

"We have commissioned one unit of 150 MW at Haldia, second is expected in a few months. It is delayed. All three units (150MWx3) should have come last year itself," India Power Corporation Ltd (IPCL) chairman Hemant Kanoria said here today.

"Who will buy the power if we produce," he asked.

The same fate is encountered by another 1000 MW under construction thermal power plant of Meenakshi Energy which was taken over by India Power last year. IPCL has two power plant, one at Haldia (West Bengal) of 450 MW and another 1000 MW Meenakshi in South India.

"We are producing only 300 MW now and hope to add another 700 MW in phases by this year," newly appointed IPCL managing director Raghav Raj Kanoria said.

However, he acknowledged that unless demand picks up it will be difficult to commission the plants at full capacity.

Raghav is the younger son of Hemant Kanoria and IPCL board reposed confidence in him to lead the power company.

He said they have been able to sign 200 MW worth of short term power sale agreements of below one year with Telangana and Andhra Pradesh state discoms and expect in a year's time discoms of the country will come out with long term PPAs.

"There had been no long term PPAs. Government should take steps to remove the inefficiencies in discoms and remove the lockjam in the sector," Hemant said.

"Government should cap the cross-subsidy levy which is higher than generation cost to make open-access a reality that will bring down power cost for consumers," Kanoria said.

Open access allows a consumer to buy power at his will from any discom.

The the power company was scouting at power distribution business and was open to acquisition.

In 2016-17, IPCL posted a net profit of Rs 37.29 crore.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)