Essar to ink power purchase deal with Bihar

Essar Energy on Thursday said it would soon ink an agreement to sell one-fourth of the 1,200 MW power to be generated from its Tori station to the Bihar Government. “A power purchase agreement (PPA) with the Bihar State Electricity Board (BSEB) for 300 MW of contracted capacity from its 1,200 MW Tori I power station will be signed,” the company said in a statement here.

The BSEB has issued Essar Energy’s subsidiary Essar Power Jharkhand Ltd (EPJL) a Letter of Intent (LoI) to purchase the power over a 25-year period.

Under the terms of the Letter of Intent issued by BSEB, the 300 MW PPA will involve EPJL supplying power at a levelised tariff of Rs. 3.28 per kWh or unit, net of transmission costs.

“The PPA, when signed, will be the second 25 year PPA to be agreed with the BSEB for Tori I, following an agreement signed in July 2010 for 450MW of capacity at a levelised tariff of Rs. 2.64 per kWh,” it said.

Tori I, in Latehar district of Jharkhand, is a coal fired power project consisting of two generation units of 600 MW each. Tori II is an additional 600 MW project.

Source: http://www.thehindu.com/business/companies/article2370026.ece

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