Hindustan Power Projects says it is ready for uptake in sector post 2016

First unit of HPP's MP thermal power plant to supply power to MP & UP

Ready to commission 600 Mw from the first unit of its flagship Anuppur thermal power plant in Madhya Pradesh, Hindustan Power Projects (HPP) is confident that the company will take lead when the power sector goes for upswing post 2016.

“The power sector is set for an uptake again starting 2016. So far there has been a down-cycle. Hence it is the right time to start the project,” said Ratul Puri, chairman, HPP.

The company achieved commissioning of unit-I (600 Mw) of the first phase of its flagship 2520 Mw Anuppur thermal power project this week.  

For the past two-three years, the power sector has been in lull state due to no green-field investment. Power procurement also by the states is poor. Add to this the woes of fuel supply. 

Puri however said the whole supply chain is now being improving. “Performance of Coal India has been good. The supply chain has improved with efficient railways, siding capacity and easier environmental clearance,” said Puri.

He said if tariffs across the country are compared on same basis then there are in the same range. “If I am aiming to sell power in 2018, cost escalation would be factored in the tariff,” he said.

For sale of power, the company had signed power purchase agreements (PPAs) with the government of Madhya Pradesh and Uttar Pradesh for 35 per cent of the power and 361 Mw respectively. It will sell power to UP at levelised tariff of Rs 5.70 per unit and to MP at Rs 4.5 per unit annual escalation as and when notified by the regulator.

The projects sources coal through a fuel supply agreement with South Eastern Coalfields. The total capacity of the flagship thermal plant is 2520 Mw to be developed in two phases of 1,200 Mw (2 x 600 Mw) 1,320 MW (2 x 660 Mw). The first phase of the project has been commissioned at a total project cost of Rs 8,000 crore.