Demand for power projects could revive in year 2017: Ravi Arya, Hindustan Power

Hindustan Power Projects Pvt Ltd (HPPPL), formerly Moser Baer Projects, forayed into coal-based thermal power projects over three years ago, on the back of a memorandum of understanding (MoU) with the Madhya Pradesh government to develop 2,520 MW capacity. It commissioned the first 1,200 MW plant in Annupur, MP, recently. HPPPL’s Ravi Arya, president-thermal, had an interaction with FE’s Sumit Jha recently, in which he discussed the power sector scenario in India, with all its problems and promise. Excerpts:

Could you find buyers for the power you have started producing?

Our project was based on an MoU with the host state, which requires us to sell 35% of all commissioned capacity to it. So far, that translated into 420 MW. We sell nearly 60 MW of this at a constant cost comprising only energy charge as per the agreement, while the rest of the capacity has been contracted at tariff determined by the state regulator. We also managed to tie up 361 MW with the Uttar Pradesh government in 2012 but have not been able to start supply due to congestion in the west-north transmission corridor. In June, we have qualified to be a power supplier to Andhra Pradesh for a contracted capacity of 374 MW, which leaves us with only 45 MW to spare.

Can you explain the problems you face in supplying power to UP?

The 400KV transmission line between Gwalior (western region) and Jaipur (northern region) that was supposed to have been ready by March 2014 got stuck because of lack of right of way (ROW) as the line passes through areas with wildlife. The issue was taken to the National Green Tribunal. The delay seems to be over and we hope to have the corridor available to us by the end of August. Although the power purchase agreement (PPA) was for supplying power from October 2016, we could start earlier as the UP government agrees to it. The non-availability of line has disrupted supply of power from the surplus western region to starved northern region.

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