Power News We love to talk!

APR 23 2015

CEA restricts capacity of JP hydro plant sold to JSW

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 23rd APR 2015

Around five months after the Jaypee group sealed the deal to sell two operating hydro power plants to JSW Energy, the Central Electricity Authority (CEA) has restricted the capacity of one of these, Karcham Wangtoo in Himachal Pradesh, to 1,000 Mw as against 1,200 Mw cited by Jaypee in its rate petition.

 In November last year, the Sajjan Jindal-owned JSW Energy acquired two hydro power plants of a cumulative 1,391 Mw capacity of Jaiprakash Power Ventures (JPVL) for Rs 9,700 crore. Earlier, the Anil Ambani-promoted Reliance CleanGen was looking to buy Jaypee’s entire hydro portfolio. The deal didn’t go through due to uncertainty on supply rates. Before that, Abu Dhabhi’s Taqa pulled out of the same deal.

 The two plants are the 300 Mw Baspa-II, commissioned in 2003, and Karcham Wangtoo, commissioned in 2011, both in Himachal.

 Jaypee's rate petition in October 2014 mentioned the capacity of Karcham Wangtoo at 1,091 Mw and which can be escalated to 1,200 Mw, the actual installed capacity. CEA, in a letter last week to the Central Electricity Regulatory Commission (CERC), said project capacity should be maintained at 1,000 Mw (4x250).

 Hence, CERC is likely to disallow the excess cost incurred by JVPL for establishing a higher project capacity and would take the proportionately reduced project cost for the purpose of rate determination.

 JSW refused to comment. A person close to the development said the change in capacity was factored in the deal valuation but neither of the two companies dwelt on the exact valuation.

 The deal was conceived in September and was finalised in November 2014. The procurers of power from Karcham Wangtoo are the states of Rajasthan, Uttar Pradesh, Haryana, Punjab (through Power Trading Corp) and Himachal Pradesh.

Tags

Haryana Himachal Pradesh Rajasthan Uttar Pradesh Punjab JSW Steel Ltd. Central Electricity Regulatory Commission Energy Central Electricity Authority Electricity Regulatory Commission Power Trading Power Trading Electricity

Related News

  • To power-up PM Narendra Modis Ujjwala Plus scheme to provide free LPG connections, oil companies to float NGO  Read more
  • Rewa solar park, to be first beneficiary sovereign guarantee scheme by govt  Read more
  • BHEL gets Maharatna status  Read more
  • Chandigarh: 118 government houses to get solar panels  Read more
  • Tatas to invest Rs 1,500 cr in renewables  Read more
  • DERC follows AAP government's order, gears up to fine discoms for outages  Read more
  • Telangana bets big on rooftop solar projects across state  Read more
  • 'Progress of auctioned, alloted mines satisfactory'  Read more
  • CERC approves transmission tariff for Powergrids 400 kV AgraSikar transmission line  Read more
  • Punjab seventh state to join UDAY scheme  Read more