The Hindu Business Line : PFC transfers Mundra project SPV to Tata Power

Ultra mega project
It would consist of five 800 MW super critical units.
Expected to commission its first unit during the Eleventh Plan period.

THE POWER MINISTER, Mr Sushil Kumar Shinde, with the Secretary, Ministry of Power, Mr Anil Razdan (left), watching the exchange of documents between the Chairman of Coastal Gujarat Power Ltd, Mr Prasad R. Menon (right), and the Director, Projects PFC, Mr Shyam Wadhera Director, at a press conference in the Capital on Monday. — Ramesh Sharma

New Delhi April 23 Power Finance Corporation (PFC) on Monday transferred Coastal Gujarat Power Ltd — the special purpose vehicle set up for the 4,000-MW Mundra ultra mega power project — to Tata Power Company.

The Mundra project in Gujarat is the first of the series of nine ultra mega power projects, under implementation by the Centre, to have been transferred to its successful bidder.

With the formal execution of the transfer documents between PFC, which is carrying out the bidding for the ultra mega projects on behalf of the Centre, and Tata Power, the latter can now go ahead with the various development activities for the project. A performance bank guarantee of Rs 300 crore was provided by Tata Power Company in favour of PFC.

The Mundra project, which is being billed as the largest competitive bidding-based independent power project to be executed anywhere in the world, would consist of five 800 MW super critical units. The project is expected to commission its first unit during the Eleventh Plan period.

Tata Power has signed power purchase agreements with seven power distribution companies that have agreed to evacuate power from the Mundra project upon its completion.

Procurers

The Rs 16,000-crore project would supply 1,900 MW to Gujarat, 800 MW to Maharashtra, 500 MW to Punjab and 400 MW each to Haryana and Rajasthan. Gujarat Distribution Company has been nominated as the lead procurer on behalf of all procurers.

Milestone

Tata Power, in December, had won a contract from the Government to set up the Mundra project. The company had submitted the lowest tariff of Rs 2.26 per unit, a levelised rate for 25 years, with the first-year tariff pegged at Rs 1.91 per unit.

Speaking on the occasion Mr Prasad Menon, Managing Director, Tata Power, said: "This acquisition is a significant milestone towards progress on Mundra ultra mega power project. We continue to look forward to the support of the Ministry of Power and the Government of Gujarat for all necessary clearances required for the project."

Acquisitions

This development follows the recent announcement made by Tata Power for acquisition of 30 per cent equity stakes in two Indonesian coal producers, PT Kaltim Prima Coal and PT Arutmin, as well as related trading companies owned by PT Bumi Resources Tbk. The acquisition specifically addresses fuel requirements for the Mundra project, besides Tata Power's Trombay and coastal power project in Maharashtra.

Meanwhile, the fate of the other ultra mega project — the proposed Sasan station in Madhya Pradesh — hangs in the balance with PFC remaining non-committal over the fate of the project.

Speaking at another event, the PFC Chairman and Managing Director, Mr V.K. Garg, said: "In case of Sasan, there are some legal and contractual issues, which are being examined by different agencies. As soon as these issues are resolved, a decision would be taken." He, however, declined to give any timeframe for this.

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