Industry & Economy
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Power
AP asks BPL Power to achieve financial closure by July 7
Our Bureau
Hyderabad
,
June 29
THE Andhra Pradesh Government will be asking BPL to achieve financial closure of its 2x260-MW coal-based power project at Ramagundam by July 7 as per the final version of the power purchase agreement (PPA) between the company and the Transmission Corporation of AP (APTransco).
The power project, for which coal linkage was also provided, had been sanctioned to BPL nearly 10 years ago. The State Government and APTransco have fulfilled all the requirements necessary for BPL to achieve the financial closure, which it had failed to achieve so far.
Stating this in the Legislative Assembly in reply to a question by Mr G. Mukunda Reddy on Tuesday, the Finance Minister, Mr K. Rosaiah, said if BPL backed out from executing the power project, the Government would ask the Generation Corporation of AP (APGenco) or some other organisation to take it up.
He said BPL had entered into a PPA with the erstwhile AP State Electricity Board originally on October 31, 1994. Subsequently, the PPA was amended twice, the first time on January 29, 1999, and later on July 10, 2003. After conducting public hearing, the AP Electricity Regulatory Commission granted consent for the final version of the PPA.
According to Mr Rosaiah, BPL had commenced work on the project in May 1999 and stopped work on its own in July 2001. The company had not been able to tie up funds required for the project from its lending financial institutions and hence construction activities have been suspended.
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