Govt initiates PPAs for 8000 MW Sasan and Mundra UMPPs

New Delhi, Oct 9 (UNI) Moving a step closer to its goal of 'power for all by 2012' through the public private partnership mode, the Government today announced the initialing of Power Purchase Agreements (PPA) for two of its seven ultra mega power projects (UMPPs), with a combined capacity of 8,000 MW.

The PPAs were signed between two special purpose vehicles -- Sasan Power Ltd and Coastal Gujarat Power Ltd -- formed for the Sasan and Mundra Ultra Mega Power Projects respectively, and authorised representatives of nine beneficiary states and 22 distribution companies.

Seven states, including five from northern India -- the national capital, Uttar Pradesh, Uttaranchal, Punjab, Rajasthan, Haryana -- and Chattisgarh, besides the host state Madhya Pradesh will draw power from the Sasan project.

While Madhya Pradesh will offtake 1,500 MW from the project, Punjab will follow with 600 MW, Uttar Pradesh (500 MW), Delhi and Haryana (450 MW each). Rajasthan and Uttaranchal will buy 400 MW and 100 MW respectively.

Similarly, Gujarat will purchase a major share of 1,900 MW from the Mundra Project, followed by Maharshtra (800 MW), Punjab (500 MW) and Rajasthan and Haryana (400 MW each).

''The initialing of PPAs of such a large magnitude, in addition to a tariff-based bidding process, will promote the key objective of the Electricity Act and facilitate investments by private sector, enabling the end user to consume power at competitive rates,'' Union Minister of Power Sushil Kumar Shinde told reporters here.

Pointing out that states like Goa are coming forward with proposals to set up their own power generating units, he said the projects were gaining momentum.

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