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.
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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.
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