Adani, which ventured into power generation in 2009-10, has become India's largest power generation company in the private sector and its current capacity is 15% more than the ultra mega power projects (UMPPs) being executed by Reliance Power and Tata Power in states of Gujarat, Madhya Pradesh, Andhra Pradesh and Jharkhand. Even India's biggest state-owned power producer NTPC does not produce over 4000 MW of power in a single location.
"When we started executing the power plant, our name didn't figure in Planning Commission's 2007-2012 five year plan period and now we contribute 10% of the planned target," Ravi Sharma, CEO, power business, Adani Power, told TOI. However, the issue of imported coal will continue to hound Adani Power as the plant is based on coal from Indonesia.
"The issue of imported coal is an industry issue and its being actively addressed at the level of the Prime Minister's Office. We have got linkages from Coal India for some of the units and the remaining coal we intend to import," said Sharma, adding that the plant will currently operate at over 70% plant loan factor (plf).
The company has signed long-term power purchase agreement with Gujarat and Haryana for sale of 80% of the capacity while the remaining 20% the company intends to sell at merchant basis.
The PPAs signed with the state governments envisages sale of power at Rs 2.34 per a unit to Rs 2.94 per unit. However, with the price of Indonesian coal going up substantially with the new Indonesian law to sell it at market-linked prices, the company is looking at renegotiating the terms of the PPAs.
Adani Power intends to complete commissioning of 3300 MW at Tiroda and another 1320 MW at Kawai by March 31, 2013. The company intends to reach a capacity of 20,000 MW by 2020.
Source- Times of India