Monday, August 11, 2008

Adani in power purchase deal with Maharashtra State for 1320MW

Adani in power purchase deal with Maharashtra State Electricity Co - sensex,nifty,market
Adani Power Ltd (APL) said it has received the Letter of Intent (LoI) from the the Maharashtra State Electricity Company Ltd (MSECL) for supply of 1,320 MW of electricity, to be generated with domestic coal at Mundra, under competitive bidding process at Rs 2.64 a unit.

The company has already signed two power purchase agreements (PPAs) with Gujarat Urja Vikas Nigam Ltd (GUVNL) for the supply of 1,000 MW of power produced from the Mundra I and II power projects, and another 1,000 MW from the Mundra III at Rs 2.89 a unit (with imported coal) and Rs 2.35 a kilo Watt hour (kWh) or an unit (domestic coal) respectively.

Recently, Adani Power had received LoI for supply of 1,311 MW of power, also to be generated at Mundra, from Haryana Power Generation Corporation Ltd (HPGCL) at Rs 2.94 an unit (imported coal). With this, Adani Power has completed tie-ups of long-term PPAs of more than 4,500 MW. The company is setting up total generation capacity of about 9,900 MW and with this LoI, the long-term tie-up of nearly half of the output from its various generation plants has been achieved, the company spokesman said here.

The company has six coal-fired thermal power projects under various stages of development or planning, with a combined power generation capacity of 9,900 MW at a cost of around Rs 43,000 crore. It intends to sell power under a combination of long-term power purchase agreements to industrial and State-owned consumers as well as on merchant basis.

The Adanis have been able to provide competitive bids as they have presence across the entire value chain of power business. They have coal mines in Indonesia for power plants at coastal location like Mundra and at Lohara (Maharashtra) for inland location like Tiroda.

In addition, the company has placed orders for two Capsize ships for ferrying coal. APL is the largest importer for merchant coal in India at present and is also planning to set up the world’s largest coal import terminal to handle over 30 million tonnes of coal at Mundra.

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