homebusiness Newscompanies NewsTata Power gears up to face power demand which is likely to surge further
Tata Power gears up to face power demand which is likely to surge further
The government on Monday ordered power plants based on imported coal to run at full capacity for three months starting March 16. It has invoked its emergency powers under section 11 of the Electricity Act, because the government is expecting power demand to surge to 229 GW in April, compared with 210 GW in January. Praveer Sinha, the Managing Director and CEO of Tata Power, said discussions were also on for signing a Supplementary Power Purchase Agreement (PPA) along the lines of Section 11.
As India approaches the summer season, concerns about meeting the peak demand for power are on the rise. According to Praveer Sinha, the Managing Director and CEO of Tata Power, the peak summer demand for electricity is likely to be much higher than in previous years.
“To cater to that requirement, it is important that all our power plants operate at full capacity,” he said.
Sinha said Tata Power's Mundra power plant operated between May and December 2022, and that four units of 4,000 MW are likely to operate at full capacity during the upcoming summer season. “All the four units will definitely operate at full capacity as we had been doing last year. So you can expect that 3,200 MW of power will definitely come,” he said.
The government on Monday ordered power plants based on imported coal to run at full capacity for three months starting March 16. It has invoked its emergency powers under section 11 of the Electricity Act, because the government is expecting power demand to surge to 229 GW in April, compared with 210 GW in January.
Also Read | India mandates imported coal-based power plants to operate at full capacity, sell surplus power to exchanges
“It is a very good and timely move by government of India to invoke Section 11,” he said. Sinha also revealed that discussions were on for signing a Supplementary Power Purchase Agreement (PPA) along the lines of Section 11. Such an agreement would allow Tata Power to supply power to critical areas during peak demand, helping prevent blackouts and power outages.
The company's stock was down 1.43 percent in the last one week and 1.88 percent in the past month.
Harshvardhan Dole, Vice-President-Institutional Equities, IIFL believes invocation of section 11 or asking utilities to import coal is a step in the right direction. “I must compliment the government for the pragmatism that they are currently showing. It's good that even before the summer is yet to hit us, preparedness is underway to ensure that there are no power outages,” he said.
He continues to like the utility space and his preferred picks are NTPC, NHPC and Power Grid.
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha polls: EC disposes off 90% complaints related to MCC violations
May 14, 2024 4:45 PM
Jharkhand Lok Sabha elections 2024: All about INDIA bloc candidates
May 14, 2024 2:52 PM
SAD's Harsimrat Kaur declares assets worth ₹135 crore
May 14, 2024 1:18 PM
PM Modi files nomination for 3rd term from Varanasi Lok Sabha seat
May 14, 2024 10:15 AM