The supply period is between June 16, 2013 and June 15, 2016 and the quantity sought about 2000 MW.

The bids called by Andhra Pradesh Central Power Distribution Company this week for power supply, in the medium term, average over Rs 5 a unit.

The supply period is between June 16, 2013 and June 15, 2016 and the quantity sought about 2000 MW.

This comes at a time when the many Andhra Pradesh discoms are battling it out with Reliance Power in the Delhi High Court, over the tariff revision sought by the generator.

The committed tariff is Rs 2.33 per unit and R Power has sought a hike of about 80 paise. The case has been referred to a Divisional Bench after a single judge vacated the stay restraining the procurers from encashing R Power’s bank guarantee of over Rs 300 crore.

R Power had inked power purchase agreements with the discoms committing a supply of 1600 MW at Rs 2.33 a unit. It had sought the hike of about Rs 0.80 per unit consequent to Indonesia mandating that all coal exports should be benchmarked to international prices.


The lowest offer from domestic coal-based plant was from KSK Mahanadi which wanted Rs 4.29 per unit, while the highest from Power Trading Corporation was Rs 6.11 a unit which is from an imported coal-based plant. There were 14 bidders including gas based generators.

R Power suspended work at its 4000-MW Krishnapatnam (AP) project last October following the guidelines issued by Jakarta which made coal imports thrice as expensive as the contracted supply rate. The plant was scheduled for commissioning in 2015-16.

Tata Power too has been clamouring for a revision of tariff and said that it was in no position to supply power at Rs 2.26 per unit from its Mundra plant following the policy changes in Indonesia. The company has petitioned the Central Electricity Regulatory Commission on the issue.

Tata Power’s first of the five 800-MW units at Mundra is operational and the second is scheduled to go online shortly.

Both companies had contracted coal supplies in the price range of $25-35 per tonne. International prices hover around $75-90 per tonne depending on the calorific value sought.

(This article was published on July 20, 2012)
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