Four power producers, including Jindal Power and JSW Energy, are set to supply 1,000 MW power collectively to three south Indian states at a tariff of Rs 4.41 per unit for short-term under a pilot scheme to bring back stressed power assets on stream.
Under Pilot Scheme-II of Ministry of Power, Jindal Power would supply 315 MW, followed by Korba West Power Company (295 MW), JSW Energy (290 MW), Essar Power M P Ltd (100 MW).
NHPC was appointed an aggregator by PFC Consultancy through e-tendering for Pilot Scheme-II.
"NHPC has got confirmation from three south Indian states for signing short-term (for 3 years) power purchase agreements (PPAs) for supply of 1,000 MW. Therefore, the letters of award have been issued to four companies -- Jindal Power, Korba West Power Company, JSW Energy and Essar Power M P Ltd -- for supply of 1,000 MW collectively," a source said.
The PPAs for supply of 1,000 MW to three states are expected to be signed in a month, the source said.
State-owned hydro power giant NHPC is the aggregator for tying up 2,500 MW power under the scheme.
"NHPC is in advance stages of negotiations with other states in the country for tying up for remaining 1,500 MW of power through coal-fired power plants. The PPA could be inked in a month after states' confirmation," the source said.
The objective of the scheme is to facilitate procurement of power for three years from coal-based power plants that are already commissioned, but do not have PPAs.
Since a PPA is a prerequisite for getting coal linkage, these plants are under stress.
Earlier this year, NHPC had discovered a tariff of Rs 4.41 per unit in a reverse auction under the scheme.
Under the auction, Jindal Power was allowed the highest supply of 315 MW, followed by Korba West Power Company (295 MW), JSW Energy (290 MW), Essar Power M P Ltd (200 MW), Jindal Power (200 MW), DB Power (165 MW) and MB Power Madhya Pradesh (125 MW).
RKM Powergen got 165 MW, followed by Sembcorp Gayatri Power (150 MW), Jindal India Thermal Power (115 MW), Jaypee Bina (100 MW), Jaypee Nigrie Super (100 MW), TRN Energy (100 MW), SKS Power Generation Chhattisgarh (100 MW), and Shree Cement (80 MW).
In October 2018, PTC India, as an aggregator, had finalised supply of 1,900 MW capacity under the first such scheme at a tariff of Rs 4.24 per unit and PPAs were signed on October 29, 2019.
RKM Powergen (550 MW), Jhabua Power Ltd (100 MW), MB Power Ltd (175 MW), SKS Power (300 MW), Jindal India Thermal Power Ltd (125 MW), IL&FS Energy (550 MW) and JP Nigrie (100 MW) were the successful bidders under Scheme-I.
The procuring discoms under Scheme-I were of Telangana and Tamil Nadu for 550 MW each, West Bengal and Bihar for 200 MW each, while Haryana had consented to sign for 400 MW.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
