Indiabulls to supply 1,000 Mw to Tata Power

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.