Untitled - Ministry of Power

114
Other Important Activities
Power Trading Corporation of India Ltd.
Power Trading Corporation of India Ltd. was set
up in April 1999 with the main objective of
catalyzing development of Mega Power Projects
and other power projects by acting as a single
entity to enter into Power Purchase Agreements
(PPAs) with Independent Power Producers (IPPs)
on the one side and Multipartite PPAs with
users/SEBs under long term arrangement on the
other, thus insulating the IPPs from protracted
negotiations with multipartite SEBs and
receivable risks. PTC has also been mandated
for power trading to optimally utilize the existing
resources in the country as also promoting
exchange of power with neighbouring countries.
Government of India has identified PTC as a
nodal agency to deal with matters relating to
exchange of power between India and its
neighbouring countries.
The capital structure of PTC has been
restructured to raise the authorized capital to
Rs. 750 Crores. The four Central Power Sector
companies namely NTPC, PFC, PGCIL and
NHPC are the initial promoters with individual
contribution of 8% each of the total paid up
capital. The share holders in PTC include Tata
Power, DVC, LIC, GIC, IFCI, IDFC and IDBI.
PTC has undertaken an Initial Public Offer of its
equity shares at a price band of Rs.14 - Rs.16
which has been oversubscribed more than 42
times. Thus around Rs. 93.5 Cr. has been raised
from the market, taking up its paid-up capital to
Rs. 150 Cr. The paid-up capital will be raised to
the authorized level of Rs. 750 Crores over a
period of 3-4 years.
PTC has set the following statement of purpose
for itself, which acts as the vision for the company:
“To Be a Front Runner in Power Trading By
Developing a Vibrant Power Market and
Striving To Correct Market Distortions”
PTC has also set the following mission for itself:
Promote Power Trading to optimally utilize
the existing resources.
Catalyze development of Mega and other
Power Projects including Hydro Projects.
Promote exchange of power with
neighbouring countries.
Develop power market in not too distant a
future.
Identification of probable sellers and buyers (for
Chapter - 22
short term and long term), coordination with
various agencies for dispatch, metering and
billing, revenue realization, energy accounting,
co-ordination with REBs, RLDCs, SLDCs etc.
and finding alternative buyer(s) are among the
major services offered by PTC.
Development of Projects
PTC has shifted its focus from Mega-Power
Projects to small and medium sized projects
which are being promoted by IPPs. PTC has
recently initialed a Power Purchase Agreement
with developers of 750 MW West Seti Hydro
Power Plant in Nepal. MoUs with developers have
also been signed in a number of cases like
Lower & Middle Kolab, Samal hydro power
projects etc.
A few project developers approach PTC with
indicative proposals for large, medium and small
sized hydropower projects in the Himalayan
Range (including some from Nepal), Jammu &
Kashmir, Himachal Pradesh, Uttaranchal, North-
Eastern States and other states like Orissa as
also less costly thermal power projects. These
proposals are under discussions.
Trading of Power
PTC has embarked upon trading by organizing
purchase of power from surplus locations and
selling to deficit states. Seasonal diversity in
generation and demand of different power utilities
gives ample opportunities for short term trading.
MUs
12000
10000
8000
6000
4000
2000
Annual Energy Traded
28.35 43.765
1617.4
4178
11016
0 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 MUs
Year
PTC started trading with limited transactions
during 1999-2000 (28.35 MUs) but trading on
sustained basis commenced from June 2001
which has grown to a figure of 1617.4 MUs