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Posted on Dec 03, 04:54PM | IBNS
Lanco Infratech Limited (LITL), a leading integrated infrastructure conglomerate, on Monday announced it has achieved a breakthrough in long term sale of 300 MW power from its Unit 1 of Lanco Amarkantak Thermal Power Station in Madhya Pradesh.
On Dec 1, Madhya Pradesh Electricity Regulatory Commission (MPERC) had approved the procurement process and price for long term power procurement by Madhya Pradesh from Power Trading Corporation (PTC) to be sourced from Lanco Amarkantak thermal power station.
Lanco is operating the 2 x 300 MW Lanco Amarkantak power plant near Pathadi village in Korba district in Chhattisgarh.
This is Lanco Group's first domestic coal based plant, using coal from nearby mines of South Eastern Coalfields Limited (SECL).
Power supply to Madhya Pradesh from the plant could not commence due to certain disputes in the Power Purchase Agreement (PPA) signed in 2005, said the company.
"The longstanding imbroglio has been recently resolved with MP Power Management Company (MPPMC) (representing the State Discoms), PTC and Lanco coming together to reach a settlement," said Lanco.
On the occasion, L. Madhusudhan Rao, Chairman, LITL said, "We are pleased to be entrusted with the supply of power to distribution companies in Madhya Pradesh from Lanco Amarkantak Thermal Power Station which is operating 2x300 MW power plant."
"The revised PPA benefits Madhya Pradesh with supply of 300 MW of power on a long term basis at one of the lowest tariffs in the region determined as per CERC Regulations."
A Settlement Agreement was concluded on Oct 16 among the MP Power Management Company, PTC and Lanco which marked an end to the litigations at various forums and paved the way for commencement of supply of 300 MW from Lanco Amarkantak Unit 1 to Discoms of MP through PTC/MPPMC on long-term basis as per CERC regulations with fuel as passthrough.
In a related development, on Nov 30, the Government of Madhya Pradesh also withdrew the debarment imposed by them previously, thus enabling Lanco Group companies to participate in all government projects in the State with immediate effect.
Supply of power to MP Discoms through PTC from the 300 MW Unit No.1 of Amarkantak power station has started from 00:00hrs on Dec 3.