Ut­tar Pradesh Govt cancels seven PPAS for 7,040-MW projects sans fuel link­age

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Ut­tar Pradesh has can­celled power pur­chase agree­ments (PPAS) with seven power projects with a cu­mu­la­tive ca­pac­ity of 7,040 mw. The PPAS, signed in 2010, were scrapped as the projects were not able to procure fuel sup­ply agree­ments even af­ter deadlines to do so were ex­tended three times.

Ac­cord­ing to sources, the projects in­clude Lanco In­frat­ech’s two 1,320-mw units of the Hi­ma­vat project in Bhoga­nipur, Kan­pur; Ba­jaj En­ergy’s 1,980-mw Lal­it­pur project and Wel­spun En­ergy’s 1,320 -mw Mirza­pur power project. All these projects were given land and other sup­port by the Ut­tar Pradesh govern­ment, the sources said. Out of the power sta­tions, only the Lal­it­pur project was com­mis­sioned. The source added that the Ut­tar Pradesh govern­ment has also de­cided to en­cash the bank guar­an­tees, worth Rs 352 crore, of these pend­ing projects. Ut­tar Pradesh Power Cor­po­ra­tion had ex­tended the dead­line to procure coal link­ages till the end of March. The PPAS for these projects were signed in 2010 by the then Mayawati govern­ment. Later, the Akhilesh Ya­dav govern­ment gave them two ex­ten­sions to get fuel link­ages.

The Lal­it­pur project, which was com­mis­sioned in 2016, had signed loan agree­ment with State Bank of In­dia (SBI) in 2011. Ac­cord­ing to govern­ment data, the project had a cu­mu­la­tive ex­pen­di­ture of Rs 14,306 crore till July, 2015. It had ap­plied to the coal min­istry for 9.15 mil­lion tonnes per an­num (mtpa) of the fuel. The power evac­u­a­tion sys­tem for the plant was also not com­pletely set up.

PPAS, SIGNED IN 2010, WERE SCRAPPED AS PROJECTS WERE NOT ABLE TO PROCURE FUEL SUP­PLY PACTS EVEN AF­TER DEADLINES TO DO SO WERE EX­TENDED 3 TIMES

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