HPP has begun supplying the entire agreed quantity of 361 MW, while KSK Energy will supply 300 MW of the total PPA of 1,000 MW from its Chhatisgarh unit
Reeling under a sever power shortage, the Uttar Pradesh government has asked power producers with whom it had signed power purchase agreements (PPAs) in 2014, to start power supply a year ahead of the original schedule of October, 2016.
Hindustan Power Projects (HPP ) and KSK Energy agreed to start the supply a year in advance. While HPP has begun supplying the entire agreed quantity of 361 MW, KSK Energy will also supply 300 MW of the total PPA of 1,000 MW from its Chhatisgarh-based power plant. The firm is likely to start supplying the remaining amount later this year.
“The commissioning of the company’s Anuppur Power Plant and the 765-kV Gwalior-Jaipur transmission line proved to be most critical in our supplying power to UP. This was based upon the Case 1 bid invited by the UP government where we had participated,” Ravi Arya, president, HPP, told FE.
UP had floated tenders for PPAs of 6,000 MW in 2012 but could only enter into PPAs of 2,175 MW in 2014. Under the terms of the agreement, the power supply was to begin from October, 2016 but the state government, in view of peak shortage of nearly 4,000 MW, had asked shortlisted developers to supply from an earlier than agreed date. However, only two developers were in the position to do the same.
The state has also floated tenders for procuring 3,800 MW of power in July which it hopes to conclude by the end of this year. The date of power supply would be from next year.