Krishnapatnam UMPP: States to study rate hike request of RPower

According to government sources, RPower has been seeking a similar revision in tariff that was extended to Mundra and Tilaiya UMPPs by CERC

The wait for the possibility of a mutual understanding between the developer and the procuring states of the stalled Krishnapatnam Ultra Mega Power Project (UMPP) seems not over yet.

A meeting attended by the officials of all the five procuring states held here on Thursday has decided to study the requests of Reliance Power before taking a final view either on enhancing the power procurement price or withdrawal of court cases filed in the past against the project delays, according to a senior official in AP government.

It was decided to appoint a consultant to study the implications of the requests made by the developer for the sake of revival of the project construction, which had remained at the foundation stage since 2011 owing to various issues, including certain disputes related to Power Purchase Agreement (PPA).

The meeting has decided to appoint a consultant to study the requests of the developer, the official said. Way back in 2009 Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu had tied up with the 4,000-mw Krishnaptnam project to procure power at a levellised tariff of Rs 2.33 per unit.

AP was allocated 1,600 mw from the project while the other three states were to get 800 mw each. Following the bifurcation AP and Telangana are entitled for 48% and 53% of the earlier allocation.

According to government sources, the developer has been seeking a similar revision in tariff that was extended to Mundra and Tiliaiya UMPPs by the Central Electricity Regulatory Commission (CERC).