Lanco Infratech Ltd has signed for a long-term sale of 300 MW power from its Unit 1 of Lanco Amarkantak Thermal Power Station to Madhya Pradesh.

On Saturday, the Madhya Pradesh Electricity Regulatory Commission (MPERC) had approved the procurement process by Madhya Pradesh from Power Trading Corporation. The power will be sourced from Lanco Amarkantak Thermal Power Station.

Lanco is operating the 2 x 300 MW Lanco Amarkantak power plant near Pathadi village in Korba district in Chhattisgarh. This is Lanco Group’s first domestic coal-based plant based on coal supply from South Eastern Coalfields Ltd.

Power purchase agreement

Power supply to Madhya Pradesh from the plant could not commence due to certain disputes in the power purchase agreement signed in 2005. The long-standing imbroglio has been recently resolved following a settlement.

L. Madhusudhan Rao, Chairman, Lanco Infratech, in a statement said: “Lanco Amarkantak Thermal Power Station is operating 2x300 MW power plant and the revised PPA benefits Madhya Pradesh with a supply of 300 MW of power on a long-term basis determined as per the Central Electricity Regulatory Commission (CERC) regulations.’’

A settlement agreement was concluded in October 2012 among MP Power Management Company, PTC and Lanco which marked an end to the litigations at various forums and paved the way for the commencement of power supply from Lanco Amarkantak Unit 1.

This settlement enables Lanco Group companies to participate in all government projects in the state with immediate effect. It also secures coal from SECL through a long-term fuel supply agreement as per the recent policy of Ministry of Coal and Coal India.

The revised PPA provides for a pass-through of energy (fuel) charges, and also enables Lanco to procure alternative fuel supplies through e-auction or imported coal in case of short-supply from SECL.

rishikumar.vundi@thehindu.co.in