NTPC backs out of Pavagada solar power project

NTPC backs out of Pavagada solar power project

NTPC backs out of Pavagada solar power project

The National Thermal Power Corporation Ltd (NTPC) has backed out of the 1,200 MW solar park project, which is being implemented at Pavagada in Tumakuru district.

Energy Minister D K Shivakumar told reporters in Bengaluru on Wednesday that the state Energy department has been forced to float fresh tenders to select a new company in place of the NTPC.

He said that NTPC had informed the government that it will not be able to supply power to the state electricity supply companies as per its agreement with the department.

As per the agreement, NTPC was supposed to purchase 600 MW of power from six developers at the park at Rs 4.85 per unit and sell it to the Escoms at a bundled tariff of Rs 3.30 per unit.

Shivakumar, however, expressed confidence of identifying takers for the project who will be ready to sell power at Rs 3.56 per unit -- the tariff fixed by the Karnataka Electricity Regulatory Commission (KERC).    

Shivakumar, who held a meeting with representatives of sugar factories and managing directors of Escoms for fixing tariff for power generated from cogeneration units, said that the 61 factories had assured supply of 500 MW.

He said that though the installed capacity was 1,515 MW, last year the government had been able to purchase on 30% of power from these units.

The minister said that the problems had arisen as many of the units were selling power in open market, as they were unwilling to sell power to the government at the KERC determined rates.