MP in talks with Rel, Essar for power

The Madhya Pradesh government is making efforts to augment power generation. The state government is in talks with two companies "" Reliance Energy and Essar Power "" for power purchase agreements.

The companies will supply nearly 1,400 Mw. The state has inked a deal with the Lanco group for purchasing 600 Mw. Lanco has issued a letter of intent to supply power at Rs 2.34 per unit from its Orissa project. These companies will supply power after four years for 25 years.

Confirming the reports, Sanjay Bandopadhyay, energy secretary, said: "We are negotiating with them (Reliance and Essar) and expect to purchase power at as low as Rs 2.40-2.45 per unit. We had floated tenders for purchasing 2,000 Mw. Lanco has committed to supply 600 Mw at Rs 2.34 per unit."