Jindal, JSW, Essar, Korba West to soon supply 1,000 MW power under Pilot Scheme-II at Rs 4.41/unit
Under the scheme, Jindal Power would supply 315MW, followed by Korba West Power Company, JSW Energy and Essar Power MP
Four power producers, including Jindal Power and JSW Energy, are set to supply 1,000MW 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 315MW, followed by Korba West Power Company (295MW), JSW Energy (290MW), Essar Power MP (100MW).
NHPC has got confirmation from three south Indian states for signing short-term (for 3 years) power purchase agreements (PPAs) for supply of 1,000MW. Therefore, the letters of award have been issued to four companies -- Jindal Power, Korba West Power Company, JSW Energy and Essar Power MP -- for supply of 1,000MW collectively. The PPAs for supply of 1,000 MW to three states are expected to be signed in a month.
State-owned hydro power giant NHPC is the aggregator for tying up 2,500 MW power under the scheme. 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 315MW, followed by Korba West Power Company (295MW), JSW Energy (290MW), Essar Power MP (200MW), Jindal Power (200MW), DB Power (165MW) and MB Power Madhya Pradesh (125MW).
RKM Powergen got 165MW, followed by Sembcorp Gayatri Power (150MW), Jindal India Thermal Power (115MW), Jaypee Bina (100MW), Jaypee Nigrie Super (100MW), TRN Energy (100MW), SKS Power Generation Chhattisgarh (100MW), and Shree Cement (80MW).
RKM Powergen (550MW), Jhabua Power (100MW), MB Power (175MW), SKS Power (300MW), Jindal India Thermal Power (125MW), IL&FS Energy (550MW) and JP Nigrie (100MW) were the successful bidders under Scheme-I.
The procuring discoms under Scheme-I were of Telangana and Tamil Nadu for 550MW each, West Bengal and Bihar for 200MW each, while Haryana had consented to sign for 400MW.