NTPC knows that it cannot ‘store’ the electricity generated. Instead of wasting the generated power, it should be used to run industries that do not involve grid locking and sold at the best possible price to obtain some revenue!

In a country starved for power, because of some grid restrictions, NTPC has reported that during 2011-12, it was stuck with 16.107 billion units of surplus electricity. This, according to the news item, was produced from fossil based fuels that went waste as there were no takers because the price was ‘expensive’! (http://www.thehindubusinessline.com/industry-and-economy/economy/article3462820.ece) This is shocking to say the least.  Why was it produced in the first place, without adequate market research?
 
After all one wonders why NTPC did not learn enough from its previous year’s performance of a similar experience when it could not get buyers to dispose off 13 billion units that were produced likewise in 2010-11?  This needs to be investigated by some responsible authority.
 
NTPC depends upon indigenous supply of fuel requirement up to 90% and the balance is imported, but, apparently electricity generated at a cost of Rs4 per unit has no takers!
 
Across the Indian Ocean, down in Australia, Adani Group’s Adani Ports is already developing a coal terminal at Abbots Point, currently with a 50 million tonne (MT) capacity that can be raised to 85 MT should the demand increase.  

And, in order to support the coal and mining industry, Australia’s biggest coal companies are jointly laying a new rail line to carry 27 million tonnes per year to the Pacific ports.
 
In contrast, however, Indian coal producers have the perennial problem of wagon shortage, slow movement and being subject to pilferage en route.
 
GVK Power, also in Australia, in a new development, has received clearance for its Alpha Coal and rail project in Queensland.
 
Reverting back to NTPC, according to Arup Roy Choudhury, chairman and MD, unless the price of domestic gas or coal is made competitive, electricity generated from these sources will remain uncompetitive, and even more so, if the fuel is of foreign origin.
 
Under the circumstances, NTPC, like all others must be enterprising enough to look for competitive supply sources of coal externally and improve production in captive coal mines that it may hold, or enter into long-term supply contracts by investments in existing units.
 
NTPC knows that it cannot ‘store’ the electricity generated; at the same time, the question of “grid restrictions” that has caused this loss should not be allowed to continue. Rather this needs to be addressed at the highest level. Or else, instead of wasting the generated power, it should be used to run industries that do not involve grid locking and sold at the best possible price to obtain some revenue!
 
It would be nice if NTPC clarifies this matter a little more elaborately?