Indiabulls to supply 1,000 Mw to Tata Power

*BUSINESS_STANDARD*

*Indiabulls to supply 1,000 Mw to Tata Power
BS Reporter | 2009-10-09 01:20:00
*
Indiabulls Power Ltd has inked a long-term power purchase agreement
(PPA) with Tata Power for sale of 1,000 Mw of power. The agreement with
the company was signed in June this year. The power will be supplied
from Indiabulls Power's Amrawati Phase-I power project in Maharashtra.
"The PPA is for a term of 25 years from the date of commercial
production of the first unit. We are expecting to start supply from the
year 2012," said Ranjit Gupta, chief exectutive officer, Indiabulls
Power Ltd.Apart from this, the company has also entered into memorandum
of understanding (MoU) with Maharashtra State Electricity Distribution
Company Limited (MSEDCL). As part of the agreement, Indiabulls Power
intends to supply 1,000 Mw of power from Amrawati Phase-I project, which
requires an investment of Rs 6,888 crore.It has also tied-up with
Chattisgarh State Electricity Board for the sale of 65 per cent of power
proposed to be generated from Bhaiyathan power project in
Chattisgarh.Though we have signed PPAs with some of the existing players
in power sector, the company is also focused on supply of power through
competitive bidding. "The company will also participate in bidding for
supply of 3,000 Mw of power to Gujarat Urja Vikas Nigam Ltd (GUVNL)", he
added.Currently, the company has five coal-fired thermal power projects
under various stages of development. Of the five coal-based power
projects having generation capacity of 6,615 Mw, three are in
Maharashtra and remaining in Chattisgarh. The total investment for the
development of these projects is around Rs. 31,000 crore, for which the
company is coming out with initial public offer.The company has
agreements with the governments of Jharkhand and Madhya Pradesh to set
up power projects. It is evaluating options to set up a 1,320 Mw thermal
project in Jharkhand and a 2,640 Mw one in Madhya Pradesh. The company
is already developing four medium-sized hydropower projects in Arunachal
Pradesh aggregating to 167 Mw.