Ntpc, Andhra Electricity Board Sign Ppa
National Thermal Power Corporation (NTPC) and Andhra Pradesh State Electricity Board yesterday signed a power purchase agreement on supply of power to the state.
Power will be supplied from NTPCs stations at Farakka (West Bengal), Kahalgaon (Bihar) and Talcher (Orissa) all located in the eastern region.
The supply, however, would be subject to opening of an irrevocable letter of credit by the state electricity board to cover the full amount of monthly bills raised.
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The state electricity board would open an Escrow account and furnish guarantee from the Andhra Pradesh government.
Under the deal, NTPC, the state electricity board and a public sector bank will enter into an agreement to establish and operate the escrow account, in favour of NTPC.
The letter of credit will be valid for a minimum period of one year, after which it could be renewed by the state electricity board.
The National Thermal Power Corporation will regulate supply from the 15 per cent unallocated share of the three stations, as specified by the power ministry.
The allocation the state electricity board is entitled to is 50 per cent from Talcher; 30 per cent from Kahalgaon and 20 per cent from Farakka.