Signed agreement with Guj govt for 2000 MW: Adani Power

In an interview with CNBC-TV18, Ravi Sharma, CEO of Adani Power said the he has signed an agreement with the Gujarat government for 2,000 MW. He added that the company has synchronized another unit of 330 megawatt (MW).

Q: Tell us now how much do you think you would be able to generate by year-end?

A: Today early in the morning, we have synchronized another unit of 330 megawatt (MW). We have earlier been operating 990 MW, so together now we have 1,320 MW, which is now commissioned. We will start operating from this unit in full load in few weeks of time.

Today we have commissioned the fourth unit, this is the last sub-critical unit which we have of 330 MW. Going forward, all our units are super-critical in nature and they would be 660 MW.

Q: For these critical units of 660 MW, could you provide us a timeline or a schedule on how they will be commissioning because you have laid out a target of reaching a total capacity of 6,600 MW by FY12, can you help us with the schedule and how they will be coming onstream?

A: The first 660 MW supercritical unit and we hope that it is the first one in India will be commissioned in the month of December. Going forward from there, we would be commissioning a unit of 660 MW practically every quarter.

Q: How is it in terms of share between power project agreements, long-term PPAs and merchant sales, this 1,320 that is already onstream?

A: We have already signed agreement with Gujarat government for 2,000 MW and most of this power which is being generated is going to them. Some part of it is being traded in the market and that depends on month to month. But mostly to give you a bigger figure, 85% of it is more or less contracted.

Q: What would be the margins therefore on that contracted part?

A: It will be very difficult for me to give you margins on a per contract basis but last months when we have declared our quarterly results, the EBITDA margin you very well know what it was.

Q: In the quarter which is currently on, you will have the full benefit of Q3 being operational and in the coming quarter you would have all the four units would be fully operational, what is your estimate of the total units that you would be selling?

A: Let me say it differently. The last month when we had all the units operational, we have clicked a PLF of 91.5%. Now the fourth unit which hs just been commissioned, it will take few weeks before it will come on full load. So the actual impact of all these four units in totality will be seen in the Q4.

Q: Are you tied up in terms of fuel for this additional unit that went onstream today?

A: Yes, we have not only tied up for this unit but we have tied up for all the nine units, which are going to be in Mundra because in addition to these four units, we have a plan for 5 supercritical units in Mundra taking a capacity of 4,620 MW and we have completely tied up the fuel for that.

Q: There is a lot of talk about you going in for some fund raising, is there anything in terms of plans?

A: It depends, three projects of ours - we have done the financial closure, we will talk about the other projects which are in Bhadreshwar or in Dahej and in Chhindwara in coming months.

Q: How have the merchant power rates been in this quarter?

A: If you see the last quarter, last quarter was a monsoon quarter where the demand is not as such and there is a fall in demand. So ofcourse the merchant power rates have come down but I feel that going forward they will strengthen.