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Coal scheme gives revival push to GMR, Adani, GVK plants

For the next round of SHAKTI, state governments have to indicate the coal requirement for which power plants may bid

Shreya Jai  |  New Delhi 

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The first round of bidding under the central government's scheme for providing to private power units would see revival of 10,000 Mw of generation capacity, it is estimated. Among the to benefit are Power, Lalitpur (Hindustan), KSK Mahanadi, and GVK. These stressed assets had a locked investment of at least Rs 40,000 crore. On Wednesday, state-owned (CIL) approved the supply after bidding conducted in September. Leading private sector entities had bid by quoting discounts in their power supply rates of one to four paise a unit (kilowatt hour), in return for cheaper supply. The discounts would benefit consumers. Coal scheme gives revival push to GMR, Adani, GVK plants Only power units which have power purchase agreements (PPAs) but no long-term supply could bid for what was offered under the Scheme for Harnessing and Allocating Koyla Transparently in (SHAKTI). The total quantity booked was about 27.8 million tonnes.

Close to 9.2 mt saw discount bidding of 2p a unit, followed by 3p discount quoted for 9.08 mt. Total power generation capacity at the units to get this would be 10,082 Mw. Executives at said it would help generate 47 billion units a year and a saving of Rs 126 crore annually to consumers for 25 years. “All the which had PPAs took part in bidding and got the required So, at an underrecovery of 3-4p a unit, they are getting long-term security, good for these assets and the country's security,” said A K Khurana, director general, Association of Power Producers. For the next round of SHAKTI, state governments have to indicate the requirement for which power plants may bid. “Even plants without a PPA can bid by quoting the price at which they will sell power. This should solve the problem for a fairly large chunk of stressed units,” said an executive. Government officials said the states were calculating the requirement. The latter, they added, would also get cheaper power through this route, helping many cash-short power distribution

First Published: Sat, December 23 2017. 01:20 IST
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