The Association of Power Producers (APP) has urged Government of Odisha to reduce water charges of thermal power plants operating in the state as they are adversely impacted due to this over the years.
Several high capacity IPPs such as GMR-Kamalanga Energy Limited (1,050MW), Vedanta Limited (1,215 MW), Angul Thermal Power Station – JITPL (1,200 MW) etc are facing big problem due to more water charges.
APP has further requested the state government to do the billing on the basis of consumption rather than allocation which would result in significant cost savings for the power plants.
“It would also incentivize the consumer to reduce usage/wastage of water which is a precious resource. The plants are unable to seek reduction in the allocated quantity as the consumption of water varies throughout the year due to reasons such as PLF, season etc. Instead of reducing the allocation, the billing should be done on consumption basis only,” the letter said.
Generally, the consumed quantity of water for the high capacity IPPs is not more than 60% of the allocated quantity, it added.
APP has advised the state government to do the billing of water charges in the line of the government of Maharashtra. “Power plants located in Maharashtra have their water billing done on the basis of consumption rather than allocation, resulting in significant cost savings for the plants,” it said.
APP further said that the state government should decrease in frequency of change in water charges and reduction in late payment surcharge. “The frequency with which water charges are changed should be amended from the current scenario of annual changes to once in five years. The late payment surcharge @24% annually is extremely high and should be reduced to 12%. The late payment surcharge can also be linked to MCLR with a suitable mark-up,” the letter suggested.