Madhya Pradesh to draw the largest share from the Sasan project
Gujarat to purchase a major share in Mundra project11 firms qualified for 2nd round of bidding for the Sasan project
NEW DELHI: The Central Government on Monday announced the inking of power purchase agreements (PPAs) for two of its seven ultra mega power projects (UMPPs), accounting for a combined generating capacity of 8,000 MW through the public-private partnership (PPP) mode.
The PPAs were inked between the two special purpose vehicles, Sasan Power Ltd. and Coastal Gujarat Power Ltd., set up for Sasan and Mundra power projects, respectively, and the authorised representatives of nine beneficiary States and 22 distribution companies.
Seven states, namely, Delhi, Uttar Pradesh, Uttaranchal, Punjab, Rajasthan, Haryana, apart from Chattisgarh, and the host State, Madhya Pradesh, are to draw power from the 4,000 MW Sasan project.
Under the PPAs entered into with Sasan Power Ltd., Madhya Pradesh, being the host State, is to draw the largest share of 1,500 MW from the power project. While Punjab is to receive 600 MW and Uttar Pradesh 500 MW, Delhi and Haryana are slated to get 450 MW each.
The balance 500 MW is to be shared by Rajasthan (400 MW) and Uttaranchal (100 MW).
Likewise, as for the 4,000-MW Mundra project, Gujarat is to purchase a major share of 1,900 MW, followed by Maharshtra (800 MW), Punjab (500 MW), and Rajasthan and Haryana (400 MW each).
Speaking to newspersons here, the Union Power Minister, Sushilkumar Shinde, said: "The initialling of PPAs of such a large magnitude, in addition to a tariff-based bidding process, will promote the key objective of the Electricity Act and facilitate investments by the private sector, enabling the end-user to consume power at competitive rates.''
In all, 11 firms, including Adani Exports, CLP Power (I) Pvt. Ltd. and Sumitomo Corporation, have qualified as bidders for the second round of bidding for the Sasan project, while 13 companies have successfully qualified for the Mundra project.
Among others, some of the domestic bidders are Reliance Energy, Tata Power, NTPC, L&T, Essar Power and Jindal Steel and Power.
The selection for the two projects, to be executed on the `Build-Own-Operate' (BOO) basis, is expected to be completed by December with the rollout slated for 2012, Mr. Shinde said.