Page 58 - BCML AR 2019-20

Segment analysis

Co-generation

Overview

Balrampur entered the business of power 37% within and markets the rest to the state
co-generation in 2003, incentivised by the electricity grid.
450.50 attractive long-term tariff revised upwards The UP Electricity Regulatory Commission
every few years on the one hand and
tax-free revenues on the other. Besides, (UPERC) announced a 35% reduction in
the tariff payable to the cogeneration
the business made a complete utilisation units in the state to the state electricity
of bagasse generated through sugar board. The proposed tariff cut is expected
manufacturing, providing raw material at no
C crore, Co-generation cost to the Company. to affect revenues for integrated sugar
Revenues, 2019-20, C615.83 Over the years, the Company commissioned manufacturing companies (the matter
is sub-judice). Owing to the reduction
crore in 2018-19
aggregate saleable cogeneration capacity in power tariff, the Company has started
of 165.20 megawatts. Of the total power exploring selling bagasse instead of its in-
generated, the Company consumes nearly house consumption in captive power plants.

8.15% Strengths
Scale: The Company created a saleable cogeneration capacity of 165.2 MW after addressing
captive needs.

Operational highlights, 2019-20
Proportion of overall
2019-20 revenues from y yGenerated 90.24 crore units of power y yAverage realisation stood at C3.06 per unit
co-generation (104.97 crore units in the previous year) in 2019-20 against C4.94 per unit in 2018-19
(12.53% in 2018-19) y yExported 52.61 crore units to the state
electricity grid (66.38 crore units in the
previous year)
Road ahead

The Company will focus on improving plant efficiencies with the objective to report a higher
plant load factor.

(in crore units)

Power March 2016 March 2017 March 2018 March 2019 March 2020
Power generation 74.69 75.37 87.41 104.97 90.24
Power sales 53.07 51.05 56.80 66.38 52.61

56 | Balrampur Chini Mills Limited