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Uttar Pradesh inks three power purchase agreements

Special Correspondent

The State to get 1930 MW additional electricity within the next four years

Photo: Subir Roy

A NEW PHASE: Chief Minister Mulayam Singh Yadav during a function to sign agreements with three leading private companies in Lucknow on Sunday. Sitting from left are L. Madhusudan, G.V.K Reddy, Anil Ambani, Mulayam Singh Yadav, Amar Singh and State chief secretary Navin Chandra Bajpai.

LUCKNOW: In a bid to ensure 24 hours uninterrupted power supply in Uttar Pradesh in the next four years, the State Government on Sunday signed power purchase agreements (PPA) with three leading private players in the country -- Reliance Energy, Lanco Kondapalli and GVK Group. It thus ushered in a new phase in public-private partnership.

They would develop the 600 MW Rosa thermal power project, the 1000 MW Anpara C thermal plant and the 330 MW Srinagar hydro-power project respectively. Since these projects are likely to be commissioned in July 2010, U.P. would get 1930 MW additional power through its own resources within the next four years.

While the Rosa project in Shahjahanpur district would be built by Reliance at a cost of Rs 2641 crore, Lanco Kondapalli Power Limited of Hyderabad will invest around Rs 10,000 crores on Anpara C which was awarded to the company through the international competitive bidding process. Reliance had also bid for Anpara C but it lost out to Lanco Kondapalli by a narrow margin.

The estimated cost of the Srinagar hydel project in Pauri Garhwal district in Uttaranchal being promoted by GVK Group is Rs 1978 crores. Even though in Uttaranchal, this project was with U.P. and has not been transferred to the hill State.

Describing the PPA signing ceremony as a historic occasion for Uttar Pradesh, Reliance Chairman and UPDC member Anil Dhirubhai Ambani said his group stepped in Rosa after Kumaramangalam Birla, who had been earlier awarded the project, expressed his desire to disassociate from the project.

Mr Ambani said the Rosa project was offered to his father Dhirubhai Ambani 10 years ago by former MP from Shajahanpur Jitendra Prasada. He added that Mr Prasada's son, Jitin Prasada, the sitting MP from Shahjahanpur had assured him (Mr Ambani) full cooperation.

Model power project

Referring to Anpara C, Mr Ambani described it as a model power project since complete transparency had been maintained in awarding the project to Lanco Kondapalli through competitive bidding. He lauded the State and Chief Minister Mulayam Singh Yadav for awarding the project on merit.

Lanco Kondapalli chairman L. Madhusudan Rao said the U.P. Government had set a new benchmark in the power sector.

Stating that this was maiden foray in the State's industrial scene, Mr Rao hoped that Anpara C would be the lowest tariff project at an average cost of Rs 1.91 per unit of power.

GVK Reddy of the GVK Group assured that the Srinagar hydel project would start generation within three years.

Stating that the project had been taken over from the Tatas, Mr Reddy said that the site had been identified and work would start soon.

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