Thermal Powertech inks 8-year pact with Telangana discoms

Thermal Powertech Corporation India (TPCIL), which owns and operates a 1,320-megawatt coal-fired power plant at Krishnapatnam in SPSR Nellore district of Andhra Pradesh, has signed a long-term power purchase agreement (PPA) with the Telangana power distribution companies (discoms).

Under the power purchase agreement, 570 Mw of power will be sold to the southern and northern discoms of Telangana for a period of eight years. Together with the 500 Mw of power supplied to the Andhra Pradesh and Telangana power discoms under a 25-year PPA, Thermal Powertech has secured more than 85 per cent of its net total generating capacity under long-term power purchase agreements.

"With this PPA, we have achieved our goal of securing at least 85 per cent of our generating capacity on a long-term basis. With this, TPCIL is now eligible for mega power status. In addition, operationally the plant is performing well and achieving good plant load factors," Atul Nargund, chief executive officer of TPCIL, said in a release on Thursday.

Set up with an investment of $1.5 billion, the coal-fired power plant at Krishnapatnam has a total capacity of 1,320 Mw. It has completed its first 660-Mw unit in March 2015, followed by the second 660-Mw unit in September 2015.