PSU Watch logo

| PM Modi likely to sign the proposed India-UAE free trade agreement in Dubai in Jan 2022 |   | NMDC announces interim dividend of Rs 9 per equity share |   | IEX shares rise for second day after turning ex-bonus |   | Private investment to pick up: CEA |   | MRPL board approves 100% CCD acquisition from OMPL |  

Power crisis: Centre pulls up states, says use unallocated power to meet your state’s demands

In the backdrop of a power crisis in India, the Centre has pulled up states over their failure to supply power to their state’s consumers and impose load shedding
Power crisis: Centre pulls up states, says use unallocated power to meet your state’s demands
Power crisis: Centre pulls up states, says use unallocated power to meet your state’s demands
  • Distribution companies should not sell the power in the power exchange and starve their own consumers, said the Ministry of Power
  • In case of surplus power, the states have been requested to intimate to the Govt of India so that this power can be reallocated to other needy state, the ministry has said

New Delhi: In the backdrop of a power crisis in India, the Centre has pulled up states over their failure to supply power to their state’s consumers and impose load shedding and has also issued a stern direction in this regard. In an official statement released on Tuesday, the Ministry of Power said, “It has been brought to the notice of the Ministry of Power that some States are not supplying power to their consumers and imposing load shedding. At the same time, they are also selling power in the power exchange at high price.”

‘Discoms cannot sell power on power exchange during crisis’

As per the guidelines for the allocation of power, 15 percent power from the Central Generating Stations (CGS) are kept under “unallocated power” which is allocated by the Central government to needy states to meet the requirement of power of consumers. “The responsibility to supply power to the consumers is of the distribution companies and they should first serve their consumers who have the right to receive 24x7 power. Thus, the distribution companies should not sell the power in the power exchange and starve their own consumers,” said the Ministry of Power.

ALSO READ

‘Surplus power will be reallocated to needy states’

While urging states to use unallocated electricity to provide 24x7 power to their consumers, the government said that states that have surplus power should communicate the same to the Centre so that it can reallocated to states where power supply situation is critical. “The states have therefore been requested to use the unallocated power for supplying electricity to the consumers of the state.  In case of surplus power, the states have been requested to intimate to the Government of India so that this power can be reallocated to other needy state,” said the ministry.

“In case any state is found that they are not serving their consumers and selling power in the power exchanges at higher rate, the unallocated power of such states shall be withdrawn and allocated to other needy states,” the government has warned.

(PSU Watch- India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)