State governments are struggling with high costs of power purchase, putting pressure on power distribution companies. The higher costs are due to an increase in price of coal, rail freight, rise in electricity demand, and an increase in short-term purchase costs, among others.
According to data compiled by the Ministry of Power, the average cost of power purchase has increased to Rs. 4.30 a unit in the first half of financial year 2018-2019 from Rs. 4.12 a unit in the first half of financial year 2017-2018.
State-wise costs
Telangana has the highest power purchase cost during the period under review at Rs. 5.10 a unit while Karnataka comes second at Rs. 4.74 a unit. The lowest power purchase costs have been assessed in Goa at Rs. 3.21 a unit and Himachal Pradesh at Rs. 2.29 a unit.
