NTPC power production costs decline even as private producers increase share


The cost of production of electricity fell to Rs 3.04 per kWh during the period from April to June 2016 from Rs 3.19 during the same period last year, the government said.

This is mainly on account of rationalization of freight charges for domestic coal and reduction of imports, the government said in a statement.

The cost of power of Central Generating Stations including NTPC Ltd. is determined by the Central Electricity Regulatory Commission (CERC).

The electricity generation in the country increased 7.13% to 391,163.27 Million Units during April-July, 2016 from 365,146.09 MUs during 2015-16 (April, 2015 to July, 2015).

However, this has also meant that the share of public sector companies such as NTPC has gone down, while that of private producers has gone up. Public sector companies saw a production increase of only about 4% during the period while the output of private companies increased by nearly 15%.

The electricity production in public and private sectors in the country during 2016-17 (April, 2016 – July, 2016) vis-à-vis 2015-16 (April, 2015–July, 2015) is given below.

Sector 2016-17 (April – July) 2015-16 (April – July) % increase
Public Sector (Central + State) 265293.66 255237.2 3.94
Private Sector 123885.45 107777.67 14.95