UP regulator hikes power tariff for sugar co-gen projects: Bajaj Hindustan
15 Sep 2009
The effective tariff rate for bagasse based co-gen plants of Bajaj Hindusthan Ltd will stand increased progressively by approximately 30 per cent, by virtue of a 9 September order of the Uttar Pradesh Electricity Regulatory Commission (UPERC), the company said in a filing with the Bombay Stock Exchange (BSE).
"Uttar Pradesh Electricity Regulatory Commission has determined the new effective tariff for existing bagasse-based co-gen projects from the financial years 2009-2010 to 2013-2014. CNCE Regulations '09 shall come into effect from 1 October 2009," the company said in a release.
BHL generates 397 MW of power from the bagasse produced in its sugar mills. After meeting its own energy needs, BHL has a surplus of over 90 MW. The company is already supplying a significant part of this surplus power to the UP state grid.
BHL is also India's largest ethanol producer and a pioneer of India's fuel ethanol programme. BHL is currently producing 34.24 million litres of ethanol in a year. In anticipation of emerging market demand, the company has increased its ethanol manufacturing capacity to nearly 218 million litres per year.
UPERC has, in its order dated 12 March 2009, decided for an early review of CNCE Regulations, 2005 that are effective for a period of five years (ie, up to 27 July 2010).
Under the changed scenario, particularly with regard to the sugar industry, the commission has decided to review the tariff payable not only to bagasse-based co-generators but also to generators of power from other sources as covered under the CNCE Regulations, 2005.
