Delay impact: Gujarat seeks tariff cut for power from Kakrapar N-units

With delays in project construction raising the tariff of electricity generated from the upcoming nuclear power generation units in Kakrapar, the Gujarat government has sought the Union power ministry’s intervention to reduce its cost burden. The Nuclear Power Corporation of India (NPCIL), which is developing the units, recently communicated to the state that the project’s cost overrun had increased the estimated tariff for the power station to around Rs 5.31/unit, up from the Rs 3.34/unit rate when the host state had sought power allocation.

According to sources, Saurabh Patel, Gujarat energy minister, has requested power minister R K Singh to take up this matter with the department of atomic energy and restructure the tariff to around Rs 3.34/unit. The average price at which the state bought non-renewable based power in FY19 was Rs 3.98/unit. Since NPCIL projects have the ‘must run’ status, the landed cost of around Rs 6/unit looks unsustainable for the state, state officials pointed.