UP energy watchdog reserves order on power plant sale to Tata Power entity
The Uttar Pradesh energy watchdog – UP Energy Regulatory Commission (UPERC), has reserved the order on the sale of a stressed thermal power plant in Prayagraj (Allahabad) owned by the Jaypee Group to a Tata Power-controlled entity.
Prayagraj Power Generation Company Limited (PPGCL), a unit of Jaiprakash Associates, operates the stressed 1,980 megawatt (Mw) power plant. It had signed a 25 year power purchase agreement (PPA) with UP power distribution companies (discoms) in 2008 and executed a fuel supply agreement in August 2013 with Northern Coalfields for supplying about 7 million tonnes per annum (MTPA) of coal.
The project was commissioned about three years behind schedule due to several delays pertaining to land acquisition, slow equity infusion, foreign exchange fluctuations, rate of interest, cost of equipment etc leading to time and cost overruns.
