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    Jindal Power bags 500 mw PPA under Pilot Scheme-II

    energy | IST

    Jindal Power bags 500 mw PPA under Pilot Scheme-II

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    Jindal Steel and Power Ltd’s (JSPL) subsidiary, Jindal Power has bagged a 500 mw power purchase agreement (PPA) under Pilot Scheme-II. Bharat Rohra, managing director and chief executive officer of Jindal Power shared his views and outlook as well as Amit Dixit of Edelweiss analysed the impact.

    The power purchase agreement will be signed in due course when the aggregator finalises with the distribution companies (DISCOMs) that are going to buy this power, said Bharat Rohra, managing director and chief executive officer of Jindal Power, a unit of Jindal Steel and Power (JSPL). Jindal Power has bagged a 500 mw PPA under Pilot Scheme-II. “We have put in a bid and we are the L1. The rate at which we have been declared L1 is Rs 4.41 paisa,” he said.
    “It is the aggregation scheme to help the distressed power companies and there is a demand in the market especially from southern states which are in need of power. I am very optimistic that NHPC will be able to sign the PPAs with these people,” he added.
    “The indication they give in the bidding was the power has to start flowing from October 1 current year. So if the power has to start from October 1, the PPA should be in place of about two-three months before that. So by August, we should be in a good shape,” said Rohra.
    In terms of capacity utilisation, he further mentioned, “It is exactly 515 megawatt and prior to this we were having long-term PPAs of about 790 mw and short-term PPAs of about 200-300 mw, which keep changing every month and a medium-term PPA of about 200 mw. So on an average, 30 percent of our capacity was booked. Current months, it is 35 percent. This will give a quantum jump to our utilisation of the plant and we will go in the range of 50 percent.”
    Amit Dixit of Edelweiss said, “It is not that they have signed the PPA, it is just the willingness of generating company JSPL to provide power at a particular price. So these PPAs are expected to be signed later and of course it is a matter between JSPL, NHPC and finally the state DISCOMs. So assuming that these PPAs are signed as envisaged in the current scheme, therefore, I would say that this is like almost a 50 percent bump up on the current utilisation of the company as far as power assets are concerned.”
    “EBITDA should be Rs 600 crore and Rs 700 crore additional that power business should generate. Current EBITDA of power business is roughly Rs 1,400-1,500 crore. So easily 50 percent bump up on EBITDA as well,” Dixit added.
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