Hyderabad: Thermal Powertech Corp. India Ltd., which owns and operates a 1,320 megawatt (MW) coal-fired power plant in Krishnapatnam in Andhra Pradesh’s Nellore district, signed a long-term power purchase agreement (PPA) with the Telangana government.
Under the terms of the agreement, Telangana’s power distribution companies will buy 570 MW of power from Therman Powertech for a period of eight years.
The $1.5-billion power plant uses super critical technology to generate electricity. Its first unit was completed in March last year and the second in September. Each is capable of producing 660 MW.
With the signing of PPA with the Southern and Northern Power Distribution Companies of Telangana, the company has secured over 85% of its net total generating capacity under long-term PPAs.
Thermal Powertech (TPCIL) has signed a separate PPA with the erstwhile united Andhra Pradesh government to supply 500 MW to the state’s utilities. This power is distributed between AP and Telangana currently.
“We are pleased to sign this long-term PPA with a progressive state such as Telangana. With this PPA, we have achieved our goal of securing at least 85% of our generating capacity on a long-term basis. With this, TPCIL is now eligible for mega power status,” Atul Nargund, chief executive of Thermal Powertech said in a statement. “In addition, operationally the plant is performing well and achieving good plant load factor.”
Thermal Powertech is 67.4% owned by Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries Ltd., and 32.6 % owned by Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects.
Sembcorp is almost half-owned by the Singapore government’s investment arm Temasek Holdings Pte. Ltd.
The signing of the agreement is not expected to have a material impact on the earning per share and net asset value per share of Sembcorp Industries for the current financial year, Thermal Powertech added in the statement.
Source: Mint; 18 Feb 2016