infrastructure | IST

Expecting more PPAs from state governments like Gujarat, says JSW Energy

Mini

Jindal Power is one of the lowest bidders of the medium-term power purchase agreement (PPA) pilot scheme floated by the government. CNBC-TV18 spoke with one more such player who has been declared the lowest bidder for 290-megawatt (MW) project - JSW Energy. Prashant Jain, Joint MD & CEO of Jindal Energy, spoke at length about the PPA.

Jindal Power is one of the lowest bidders of the medium-term power purchase agreement (PPA) pilot scheme floated by the government. CNBC-TV18 spoke with one more such player who has been declared the lowest bidder for 290-megawatt (MW) project - JSW Energy. Prashant Jain, Joint MD & CEO of Jindal Energy, spoke at length about the PPA.
"This is a 2500 megawatt (MW) pilot-II scheme from Government of India for which NHPC was the aggregator," Jain said.
“As per the bidding document, the supply is supposed to start by October but given the past experience, it can be another 2-3 month delay. So the supply should commence anytime between October and January 2019,” he added.
Talking further about the PPA, Jain said, “We have given this capacity from Vijaynagar. So out of 860 MW 280 MW is a PPA tied up with JSW Steel and out of balance we have given 315 in NHPC tender and another 300 MW we are L1 for Telangana. They also came out with 1,000 MW PPA for power supply from July this year to March 2020.”
“As far as JSW Energy is concerned, we import coal for our Vijaynagar plant and coal prices has come down from USD 105 per tonne to USD 67-68 per tonne, so fuel price has moderated which is going to improve our dark spread in the current financial year and in time to come,” Jain said.
On the capacity utilization front, he said, “In FY19-20 its going to be better than last year because of additional medium-term PPAs.”
Talking about the tender pipeline, Jain said, "Another 3000 MW tender is due from Gujarat. So a lot of tenders are coming up because the power demand is going up."
next story

Market Movers

Currency

CompanyPriceChng%Chng