Uttar Pradesh Govt. signed power deal with Ratul Puri’s HPPPL and a few more
The ruling government in the state of Uttar Pradesh signed a power deal with power giants like Ratul Puri’s HPPPL along with a few more, at the rate of Rs 5.1 per unit, which will cater the need of electricity in the state. As a result of an increase in electricity price, this 5000 Mw power purchase agreement was executed, to felicitate the facility of electricity throughout the state.
When the power prices in the spot market have touched a new low of Rs 2.5 a unit, the UP Government decided to sign the PPA with power producer and service provider. The average spot price was Rs 2.73 a unit in October 2015 which dropped to Rs 1.9 a unit in November.
The giant power plants with whom UP Government signed the PPA include Bajaj Hindustan with Rs 4.71 a unit, Harduaganj with Rs 5.1 per unit and Hindustan Power with Rs 4.7 a unit. The Board of Directors of these powers plants is glad to be a part of UP Government’s plan, like BOD of Hindustan Powerprojects Private Limited, Ratul Puri.
Sources in the UP state power department said the Indian Energy Exchange (IEX) had approached the state to procure power from the spot market. IEX officials, however, said the power price at the exchange has remained close to Rs 2-2.5 a unit in the whole year.
Ratul Puri and his Hindustan Powerprojects are glad to be a part of this agreement and Ratul Puri would not mind to explore other power options in the state in future.
UP had a peak power demand of 57,000 Mw during April-October 2015, of which only 8,893 Mw is met. Reeling under power cuts and irregular power supply, it suffered from supply deficit 13 per cent during the same period – one of the highest in the country – according to data with Central Electricity Authority.
In the state Budget for 2015-16, UP chief minister Akhilesh Yadav had promised 22 hours power supply to rural areas and 24 hours in urban areas by 2016. He had also promised to increase power supply to 21,000 Mw from 10,000 Mw. Elections to the UP Assembly are due in 2017.
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