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Higher Hydro Power output charges up Gridco Profit by 51 Percent to INR 48.25 Cr

State-run power trader Gridco Ltd posted INR 48.25 crore net profit in 2013-14 financial year, up by 51 Percent from previous year profit as higher revenue from inter-state power trade and better availability of cheaper hydro power supported, officials said.

"Availability of ample hydropower meant we had to spend lesser amount for power purchase. And it improved our profit margin," said B Mohapatra, director (finance) with Gridco.

Cost of power purchase is one of the highest expenditure occured by Gridco, roughly eating away around 83 Percent  of each rupee earned by the power trader, as per financial data provided by it for 2013-14.

In the last fiscal, state-run generator Odisha Hydro Power Corporation (OHCP) surpassed its annual production target of 5,676 million unit (MU), prescribed by regulator OERC. The rise in power generation was supported by low pressure-induced rains that lashed the southern part of the state towards the fag end of monsoon season that ended in October 2013.

As a result, major reservoirs, which are located at Koraput , Malkanagiri and south of Bhawanipatna districts, had ample water to generate record power generation.

Hydro power rates are much cheaper compared with high cost coal-fired electricity generation. Gridco usually buys around 15 Percent  of its total power requirement of 3000 Mw from hydro power sources, but last year hydro generation provided as much as 35 Percent of total requirement because of higher generation. Gridco used the opportunity to earn some extra buck apart from selling power to discoms to boost revenue, Mohapatra added.

"The power trade was higher in 2013-14 at around INR 750 crore, mainly came from bilateral trade," he said, indicating that revenue earned from power exchanges was insignificant.

In 2012-13, total revenue earned from power trading stood at INR 413.55 crore, including INR 14.8 crore income via trading through power exchanges. Gridco mostly sells power through bilateral agreements, which are long term power supply commitments.

Source-On Request