Report of Indian Institute of Public Administration ... - Ministry of Power

Rajasthan
GENERATION
GENERAL RECOMMENDATIONS
(a) In Rajasthan the cost of transporting coal to STPS and KTPS is more than the
cost of coal. Instead of being attracted with the location of power plants within
the State, a time has come when different States may like to collaborate in setting
up of the power plants at pithead stations. Wheeling of power is much cheaper
than transportation of coal. Incidentally, the pressure on railways would also ease
if a firm stand is taken to discourage thermal power stations planned far away
from the coal mines.
(b) To discourage the tendency of having State-wise power plants, leading to heavy
expenditure on transport of coal and straining the railway transport system,
NTPC might like to prepare a shelf of projects based on pit head thermal
stations. It could invite willing States to join. Of course, tactically the State where
the generating plant is to be located should also be persuaded to join as a partner
State. Once the alternative of pithead power stations becomes viable and tariff turns
out to be attractive, the States will avoid the temptation of having thermal power
stations located far off from the coal mines.
(c) For a variety of reasons, private generation has not picked as expected. NTPC
may consider encouraging private companies to set up generating plants.
Private generators appear to be hesitant to deal with the financially weak utilities.
The NTPC has no such problems and its recovery is nearly 100 per cent. NTPC
could float international tenders and based on the lowest tariff quoted by such
private generators who choose to set-up generating plants, it could enter into long
term PPA for purchase of power.
(d) Rajasthan receives the maximum solar insolation in the country and much needs to
be done to utilise the same. Unfortunately the progress of the Mathania Solar
Project, particularly in its shifting fuel choices, present a picture of inadequate
planning. In a 140 MW plant, with solar component being only 35 MW, it is
difficult to term it as a solar plant. The Rajasthan authorities perhaps would do
well to concentrate on the solar component of the project instead of trying to
make it a hybrid plant.
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