PTC signs Power Sale Agreement for LANCO Amarkantak TPP
New Delhi; June02, 2005
In a first-of-its-kind agreement structure, PTC and MPEB have signed a Power Sale Agreement for sale of power generated by the first phase (of 300 MW capacity) of the LANCO Amarkantak TPP located in Chattisgarh. The 25 year PSA (Power Sale Agreement) is the first agreement for long term sale of power to be signed between a state power utility and an intermediary in the country.
Mr.T.N.Thakur, Chairman & MD, PTC, said Long-term agreements like this one with MPEB are the basic building blocks for the sustainability of our business model, and our vision for a vibrant power market in the country. We look at this milestone as significant not just for the Company but for the facilitation of private investment in power generation of the country. In the coming months, we would focus on more of similar structures to drive the sector towards a critical mass of new investments.
The agreement with MPEB covers back-to-back sale of the entire generation output from the 300 MW Phase-I of the project. The Company is also considering signing similar agreements with other projects for an aggregate capacity of nearly 14000 MW, out of which about 2500 MW would be signed in the near term. These agreements may be for full capacity, or PTC may choose to tie-up only part of the capacity back-to-back, while leaving the remaining capacity to participate in the short-term market. |
