NEW INITIATIVES OF

DEPARTMENT OF POWER

Policy of Government of West Bengal on Mini/Micro Hydro

Electric Power Station up to 3 MW :

The high and extra high voltage industrial consumers will be allowed to set up
captive power plant through no-conventional energy sources including
Mini/Micro Hydel Power Station up to 3 MW
Transmission and wheeling of Power generated.

Banking facilities

The facility for wheeling of Power will be provided by the utility at a

wheeling charge of 30 paise/kWh that will be revised from time to time.
The wheeling of power will be allowed to not more than one unit of the
same industrial undertaking. However, a captive power plant may be set
up through a Joint Venture Company constituted by a maximum of
2(two) industrial undertaking who would be eligible to exclusively
consume the Power from the captive Power plant in one unit each of the
participating industrial undertaking in the Joint Venture Company. For
this purpose the industrial undertaking will be required to make its own
transmission lines upto nearest grid Sub-Station of the utility along with
the associated protective system as per specification of the utility and the
said transmission line shall be maintained by the generator.

Utility will allow the power generated to be banked for a period of six
month.
The industrial undertaking will be allowed to draw power from the bank
during different time blocks of the day from energy banked by them
during the corresponding time blocks.

Sale of unused power to the utility and commercial treatment for wheeling of

power and sale of unused power.

If the banked energy is not used for six month, the said energy will be
deemed to have been sold to the utility at a rate which shall be equivalent
to weighted average of the sent-out fuel cost of Thermal Generating
Stations of the utility.
The entire power/energy generated at the captive power plant shall be
injected to/banked with utility's grid. If the energy injected to utility's
grid along with energy withdrawn from the bank during the month is less
than energy consumed by the Industrial undertaking or the company's
constituent member in case where the Captive Power Station has been set
up by a Joint Venture Company by two industrial undertaking, the
utility shall deduct the energy injected plus the energy withdrawn from
the Bank during different time blocks from the respective monthly
consumption of the said consumers during the corresponding time blocks
and bill the consumers as per prevailing tariff. The amount of energy
injected to the grid along with the quantum of energy withdrawn from
the Bank each month shall be shared by the Company's Constituent
Members in case of Joint Venture Project in a manner to be intimated in
writing to the utility at the beginning of each year. If the combined
maximum demand in KVA drawn by the said consumers during any
month exceeds the average power in KVA injected in the grid, such
excess maximum demand shall be allocated to constituent members of the
company in case of a Joint Venture Company, in a manner to be
intimated by the company to the utility at the beginning of each year and
charged to the consumers as per prevailing tariff of the utility. The
industrials undertakings shall have to ensure payment of AMGR as per
power supply agreement executed by them with the utilities.
A consumer having solar P.V. installation will be allowed to inject his
surplus energy to the grid with the banking facility as admissible for
industrial undertaking having captive Hydel Power Station upto 3 MW.
There will be no provision of sale of power by the industrial undertaking
to any third party. However, a captive power plant set-up through a joint
venture company constituted by a maximum of 2(two) industrial
undertakings will be eligible to exclusively consume the Power from the
captive power plant in one unit each of the participating industrial
undertakings in the Joint venture Company.
Captive Power can be wheeled through the system of one utility only.

Policy in Respect of Captive Power Plants Utilising Conventional Fuel :

New industries may be allowed to set up Captive Power Plant for continuous
running provided the same is not connected to the Power Utility's Grid and

there is no third party sale. If such captive generation is through installation of

diesel generator se, control of noise pollution must be as per stipulations of the
Pollution Control Board.
Already operating industries wishing to switch over to captive generation-party
or fully, may be allowed to set up Captive Generation Plant provided such plant
is not connected to the Power Utility's Grid and there is no third party sale.
Environment clearance should be obtained from the West Bengal Pollution
Control Board and Environment Department of the State Government.
Consumers drawing backup power or partial power from Power Utility shall
pay monthly demand charge on contract demand at double the normal demand
charge rate provided the actual drawal is less than the contract demand. In the
event actual demand in a month exceeds the contract demand the excess demand
shall be charge at three times the normal charge rate.
Electricity Duty will be payable under the Bengal Electricity Duty Rules as
amended from time to time. Metering arrangement should be made for
recording consumption of power generated in the Captive Plants.
Industrial units may apply to the West Bengal State Electricity Board for
clearance u/s-44 of the Electricity (Supply) Act, 1948, after obtaining clearance
from West Bengal Pollution Control Board and the Environment Department,
Government of West Bengal. Before given consent u/s-44 (1) of the Act, the
WBSEB shall consult Central Electricity Authority in cases where the capacity
of the Captive Plant exceeds 25 MW.