Developing 516MW of power in Arunachal Pradesh: EDCL

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Developing 516MW of power in Arunachal Pradesh: EDCL

Energy Development Company Ltd (EDCL) has signed agreements with the government of Arunachal Pradesh to start work on seven hydroelectric power projects in the state. In an interview with CNBC-TV18's Sanjiv Saraf, ED, EDCL gave his perspective on the company's business plans going forward.

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Energy Development Company Ltd (EDCL) has signed agreements with the government of Arunachal Pradesh to start work on seven hydroelectric power projects in the state. The company has a total capacity of 270 MW currently, which it will increase to 373 MW. In addition, the company has projects underway to develop 143 MW of power in the state.

In an interview with CNBC-TV18's Sanjiv Saraf, ED, EDCL spoke on the agreement that the company has signed with Arunachal Pradesh and gave his perspective on the company's business plans going forward.

Below is a verbatim transcript of the interview. Also watch the accompanying video.

Q: We believe your capacity at your hydroelectric projects has been increased by about 103 megawatts (MW) to take it to a total of about 373 MW. Could you take us through the rationale behind this and how it will benefit your revenues?

A: Day before yesterday we have signed an agreement with the Arunachal Pradesh government to increase our capacity from 270 MW to 373 MW. In addition to this, we have also signed new hydroelectric projects, IPP projects to the tune of 143 MW which makes our total capacity in Arunachal 516 MW. So it is not only 373 MW but 516 MW in total we will be developing in Arunachal Pradesh.

Q: Any other agreement that you have signed with Arunachal Pradesh that of this 516 MW, how much would you have to supply to the government or is everything that you can sell on a merchant basis?

A: Out of 516 MW whatever we generate equivalent energy with a PLF of roughly 60%, 13% free power will go to the state and the balance we can sell as merchant.

Q: What are the kind of merchant rates that you have been able to sell so far?

A: Our existing projects in Kerala and Karnataka - in Karnataka we are selling power to the government at the rate of Rs 3.71 per unit and in Kerala it is Rs 2.94 per unit. These are the two indicators and here it will be equivalent to that or it maybe even more.

Q: By when do you expect these projects of about 516 MW to be completed and revenues to start kicking?

A: I would say that we are in September 2010, and we would come up with the first project from 2013 onwards. You can imagine that every year till 2016, 100 MW will be added into our system.

Q: What kind of electricity generation would you be targeting in this fiscal FY11 on your existing projects?

A: From our existing projects, we will be roughly generating around 55 million units.