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BPL proposal for 300 MW plants in AP revised

Our Bureau

Hyderabad, Aug. 21 BPL has revised its proposal to set up two 300 MW power plants in Andhra Pradesh with a likely tariff of Rs 1.79 per unit. The move comes in the wake of the State Chief Minister, Dr Y S Rajasekhara Reddy directing the officials to negotiate with the company.

At a review meeting on the company’s earlier proposed 520 MW power project at Ramagundam, Mr Mohd. Shabir Ali, State Minister for Energy, and other senior officials discussed various issues.

It may be recalled that the Company had an agreement with the State Government to set up a 520 MW power project at Ramagundam without tariff fixation in 1994.

Though tariff was fixed at Rs 1.88 in 1999, power purchase agreement was terminated in 2004 due to non-closure of finance for the plant. In 2006, the Chief Minster constituted a cabinet sub-committee which, after negotiations with BPL, had brought down the tariff to Rs 1.79.

Meanwhile, power consumption in the present khariff season had reached 183 MU as on August 19, 2007 as against 161 MU on the same day last year. It was expected to reach 191 MU in ensuing rabi season, according to officials.

The Government is also gearing up to meet additional demand and to ensure seven-hour power supply to farmers. While many overhauled thermal units were ready to meet the demand, sufficient naptha stocks were also procured.

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