New Delhi: Essar Energy Plc Tuesday said it has entered into a long-term pact with the Bihar State Electricity Board for suppling 300 MW power from the group's upcoming 1,200 MW Tori-I plant in Jharkhand.
This is the company's second 25-year power purchase agreement (PPA) with the Board (BSEB) for the Tori-I project.
London-listed Essar Energy is part of conglomerate Essar.
In a statement, Essar Energy said it has signed a power purchase agreement (PPA) with Bihar State Electricity Board (BSEB) for 300 MW of contracted capacity from Tori-I plant.
The 1,200 MW coal-fired power station is under construction in Jharkhand.
"The binding PPA has been signed by BSEB with Essar Energy's subsidiary Essar Power Jharkhand Limited (EPJL) and has a 25-year duration," the statement said.
According to Essar Energy, the PPA was secured following a competitive bidding process, with supply of power under the terms of the PPA being due to commence from May, 2015.
"Under the terms of the PPA, the 300MW PPA will involve EPJL supplying power at a levelised tariff of Rs. 3.28 per kWh (approximately US cents 6.7 per kWh) net of transmission costs," the statement said.
This is the company's second 25-year PPA with Bihar State Electricity Board for the Tori I project. In July 2010, Essar Energy had inked an agreement for 450 MW of capacity at a levelised tariff of Rs. 2.64 per kWh (about US cents 5.4 per kWh).
Essar Energy Chief Executive Naresh Nayyar said the company is pleased to have concluded this PPA with Bihar.
"This contract is at a significantly higher tariff than the previous PPA with Bihar and shows we are continuing to make progress in securing revenues from our investments in power generation in India," Nayyar said.
Currently, Essar Energy has 1,600 MW of operational capacity and three power projects --having a total of 2,910 MW capacities-- are expected to be fully commissioned by March 2012.
Another seven power projects are under construction, which will take Essar Energy's total to 9,670 MW by March, 2014.
First Published: Tuesday, October 18, 2011, 18:02