Assam : Oxygen Plants To Receive 20% Rebate On Energy Charges

Posted in Assam, Featured, Northeast


  • NET Web Desk

The Assam Electricity Regulatory Commission on Monday announced that oxygen production plants will receive a 20 percent refund on their total energy bill for dedicatedly supplying oxygen, amid the COVID-induced crisis.

This reimbursement was made, despite the fact that COVID-19 epidemic led the Assam Power Generation Company Limited (APGCL) to incur revenue loss of Rs 780 crores during FY 2020-21.

As per APGCL officials, the pandemic had a negative impact on the economy in FY 2020-21 and subsequent years.

According to IANS report, although COVID-19 had a minor influence on electricity generation and transmission, but it adversely impacted on the distribution sector of Assam Power Distribution Corporation Limited (APDCL).

They claimed that overall sales fell by 357 million units (MU) in FY 2020-21, which had a substantial impact on APDCL’s revenue, which dipped by Rs 780 crores.

As a result of reduced consumer sales, surplus power was sold at a lower price. APDCL sold 1,328 MU of surplus power at a cost of Rs 1.44 per unit in FY 2020-21, resulting in a total revenue loss of Rs 191 crore.

Higher distribution losses have resulted in an enhancement along power purchase costs of Rs 158 crores, of which only Rs 53 crore is passed on to consumers, according to the company.

The need for oxygen surged dramatically during the second wave of pandemics; informed Abhijit Barooah, Managing Director of Premier Cryogenics Limited.

“The refund will encourage investment in this industry and help current units stay afloat,” he told the mediapersons.

Its worthy to note that Assam had a daily production capability of 61 metric tonnes of oxygen with adequate storage capacity. In addition, 10 oxygen separators have been constructed by the state government in medical colleges and hospitals.

Assam was sending 15 metric tonnes of oxygen to other northeaster states.

Furthermore, during the second wave of the Covid-19 pandemic, Assam used to receive 160 MT of oxygen per week via the Oxygen Express programme.

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