The Neyveli Lignite Corporation India Ltd (NLCIL) has passed on the benefits of lower tariff to the tune of ₹1,523 crore per annum through a combination of technology-driven and efficient mining operations and cost management to consumers, according to a press note from the public sector company.
NLCIL has been able to reduce its lignite transfer price for captive use by around ₹300 per tonne this financial year leading to lowering of power tariff ranging from ₹0.35 to ₹0.58 per Kwhr of electricity from its power plants with effect from April/May 2018.
On account of the above reduction in transfer price, around ₹683 crore will be passed on to the beneficiary power distributing companies in the southern region, the press note said.
Earlier with major reforms coming through government initiatives of GST rollout with effect from 2017, the NLCIL, as a power generator using lignite from its own mines in the same State, passed on the benefit coming from non-applicability of compensatory cess — this resulted in the reduction of power tariff ranging from ₹0.45 to ₹0.75 per Kwhr based on primary fuel consumption in its various power plants.
In terms of benefits, this worked out to about ₹631 crore (for nine months) for user distribution companies in southern States as well as in Rajasthan.
With a further reduction of transfer price, the total reduction in power tariff has been to the tune of ₹0.80 to ₹1.33 per Kwhr.
