Reliance Power to receive Rs 1,050 crore from buyers of its electricity

Reliance Power on Thursday said Appellate Tribunal for Electricity has upheld its plea on Sasan ultra mega power project, paving the way for the company to receive Rs 1,050 crore from the buyers of its electricity.

In a statement, Reliance Power said the Sasan project in Madhya Pradesh is now entitled to get an unpaid amount of nearly Rs 850 crore from procurers, besides an additional Rs 200 crore of the carrying cost, as per the power purchase pact.

Reliance Power stocks rallied after the news, ending at Rs 49.35, up Rs 1.75 or Rs.3.68%.

The relief came after the tribunal dismissed a petition filed by the state-run Western Region Load Dispatch Centre, which is the apex body to ensure integrated operation of the power system in India's Western Region.

It had moved the central electricity watchdog on some aspects of the power purchase pact.

"We have, in the above part of the judgment, considered all the issues and we find that the impugned petition filed by Western Region Load Dispatch Centre merits dismissal," said the tribunal.

The Sasan project in Singrauli district of Madhya Pradesh, is the largest integrated power plant-cum-coal mining project at a single location, involving investment of over Rs 27,000 crore.

The company said the project delivers among the lowest tariffs at Rs 1.58 kwh per hour, entailing a saving of Rs 300,000 crore in 25 years. Some 420 million people in 14 states will benefit from the low tariff, it added.