RPower to supply 2,500 MW to UP on long-term basis

Going headlong on its target of improving power scenario in Uttar Pradesh in the coming years, the Mayawati government has issued a letter of intent (LoI) to Anil Dhirubhai Ambani’s company Reliance Power for supplying approximately 2,500 mw Case-I power on long-term basis. The Energy Task Force (ETF) has already given it a go ahead and the matter will soon be brought before the state Cabinet. Reliance Power will thus supply 2,456 mw power at an average price of R3.70 per unit for 25 years starting from 2014.

It may be recalled that the Uttar Pradesh Power Corporation (UPPCL) had set a roadmap for procuring 2,000 mw additional power in the next Five Year Plan through Case-I tariff-based competitive bidding process for its four electricity distribution licensees, Paschimanchal Vidyut Vitran Nigam, Madhyanchal Vidyut Vitran Nigam, Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam both on long-term and short-term basis.

Speaking to FE, an official of the energy department said that the state government has decided to purchase a total of 5,000 mw of power through Case-I bidding. “The 5,000 mw has been broken into two slots of 2,000 mw and 3,000 mw each. We intend to get the first slot of 2,000 mw by March 2012 and the remaining 3,000 mw by 2014,” he said, adding that as per the center’s guidelines for procurement of long-term power through Case 1 bidding process, the UP government had invited competitive tariff-based bids under the Case -1 route, which allows it to procure power from one or more private companies irrespective of the location or technology of the power plant. Under this system, the power supplier is responsible for arranging land, water, fuel, and necessary clearances.

The Mayawati government’s efforts to power for shop are part of its multi-pronged strategy to achieve a complete turnaround for the power-starved state. A much-criticised MoU signing blitzkrieg, with both the private and state sectors is one way of augmenting the state’s power needs while the other is procurement of power through competitive bidding process. The use of this combination is part of the government’s road map to achieve 25,000 mw power by the end of the 12th plan period. “From the present shortfall of roughly 2,500-3,000 mw daily, in which most of the districts go without power for anything between 6-12 hours at present, Uttar Pradesh is preparing to become a power surplus state with 24 hours electricity by the end of the 12th plan period. And if we plan to see the state grow as anticipated, power is the most basic requirement,” said an official, requesting anonymity.

Apart from the long-term procurement, the state utility is also seeking competitive bids for short-term procurement of 2,000 mw power, but since all the bids received were very high, the bid evaluation committee has rejected the bids and has called for fresh bidding.

Reliance Power is set to supply the required quantity of power from its Chitrangi power project in Gujarat.