The grid support charges (GSC) on captive power plants (CPP) proposed by the two power distribution companies (Discoms) of Telangana at a very high rate of ₹2,37,500 per megawatt per month would be detrimental to the State’s objective of doing business with ease at competitive costs, Telangana chapter of Confederation of Indian Industry (CII) has said.
“The grid support or parallel operating charges will significantly increase the production costs of manufacturing units and make them uncompetitive and would also discourage industries intending to set up new units or expanding the existing manufacturing units in the State”, chairman of Telangana chapter of CII Sameer Goel said in a recent letter addressed to Minister for IT and Industries K.T. Rama Rao.
Seeking the intervention of Mr. Rama Rao in the matter, Mr. Goel requested the former to pursue the issue with the Discoms so that grid support charges were not levied on industries operating in Telangana with captive power plants and operating them in parallel to the State Grid as being done by many States including Odisha, Karnataka and West Bengal. As such, there was no provision in the Electricity Act, 2003 or the grid code or in any of the regulation of Telangana State Electricity Regulatory Commission (TSERC) and Central Electricity Regulatory Commission (CERC), Mr. Goel pointed out.
