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BW Businessworld

'Offtake Of Power Is Less Because States Can't Pay For Power'

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Dr Arup Roy Choudhury, the CMD of India’s largest power producing company, NTPC, brings out the paradox in India's electricity policy.
 
On one hand the Central Electricity Regulatory Commission as well as the financing institutions are recommending increase in the power tariffs but there are no buyers for expensive power in the market.
 
“The government should bring the cost of power down. Power, like any other commodity is a product and if it is not priced properly, it is not sold," says Choudhury.
 
According to Choudhury, instead of increasing power tariffs, the power distribution companies should bring down the T&D losses to improve their financial condition.
 
Choudhury also says that any increase in the price of natural gas will make it difficult for the already beleaguered gas-based power plants to sell their power.