NLC passes benefits of lower tariff to discoms

By NT Bureau Published on Jun 04, 2018 03:03 PM IST

Chennai: NLCIL (Neyveli Lignite Corporation India Limited) has reduced its Lignite Transfer Price (LTP) for captive use by around Rs 300 per ton this financial year leading to lowering of power tariff ranging from Rs 0.35 to Rs 0.58 per kwhr of electricity from its power plants with effect from April/May 2018.

A press release said, "Around Rs 683 crore will be passed on by the company to the beneficiary power distributing companies in southern region."

"NLCIL, as a power generator, coming from the non-applicability of compensatory cess which resulted in reduction of power tariff ranging from Rs 0.45 to Rs 0.75 per kwhr based on primary fuel consumption in its various power plants. Around Rs 631 crore benefit was passed southern States," the release added.

The total reduction in power tariff has been Rs 0.80 to Rs 1.33 per kwhr resulting in benefit to the consumers by almost Rs 1523 crore per annum, according to the release.