Five states sign PPAs to ease burden on coal-based power plants
Five states including Telangana, Tamil Nadu and West Bengal have signed agreements to buy 1,900 MW of power at a discovered tariff of Rs 4.24 per unit for seven electricity generators, the government said Wednesday.
The Power Purchase Agreements (PPAs) are "expected to lessen the burden and lead to efficient utilization of capacities of some of the coal-based stressed power plants," an official statement said.
PFC Consulting Ltd was the nodal agency for the Aggregated Power Procurement Scheme and PTC India Ltd was the aggregator.
The Ministry of Power in April had issued guidelines for a pilot scheme to facilitate aggregation of procurement of power (2500 MW for 3 years) from commissioned coal-based power plants through competitive bidding.
PFC Consulting Limited conducted the bid process for selection of capacity from different projects.
"Subsequent to the bidding process tariff was discovered as Rs 4.24 per unit and projects with aggregate capacity of 1900 MW were declared as the successful bidders," it said.
The agreements under the scheme were signed with the successful bidders and procuring distribution companies on October 29.
Telangana and Tamil Nadu will buy 550 MW each, West Bengal and Bihar 200 MW each and Haryana has signed up for 400 MW.
(With inputs from agencies.)