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Oman-based Tanweer Infrastructure Pte Ltd, which operates one of India’s largest independent power plants in Andhra Pradesh, may just step in to ease the challenge that that the State is faced with in terms of power supply. This comes a month after the AP government released a white paper on the State’s power sector.
The company is set to enter into a contract with the Andhra Pradesh government to dedicate another unit for this purpose. “We have four units, of which one has been dedicated to Andhra Pradesh, while the rest are used to supply power to Telangana and Bangladesh. An eight-year contract of providing 570 MW to Telangana lapsed in March this year and the State has not revived it. The same is now being tapped by Andhra Pradesh,” an official in the know told businessline.
SEIL (Sembcorp Energy India Ltd) operates two supercritical coal-fired plants totalling 2.6 GW. It operates four supercritical power generation units (660 MW each) from Nellore, supplying power to Andhra Pradesh, Telangana and Bangladesh through long-term power purchase agreements (PPA). Additionally, it has short-term power sales arrangements with other Distribution utilities (Discoms).
In the second half of 2022, Singapore-headquartered Sembcorp Industries had announced that its wholly-owned subsidiary Sembcorp Utilities had entered into a share purchase agreement to sell 100 per cent of the shares of SEIL to Tanweer Infrastructure. With the ₹11,700 crore deal, (approx Singapore $2.1 billion) Tanweer Infrastructure became the sole shareholder of SEIL.
On feedstock sourcing, an official said, “The company has been maximising its domestic coal supply under various agreements entered with Coal India. This has helped it optimise coal inventories and ensured operational continuity and stability against any market dynamics.”
“Through highly efficient operations, the company has been successful in achieving a domestic coal materialisation of over 95 per cent,” he said. On whether there has been any change in functioning since the new government has taken office, the official said, “The operations continue uninterrupted. Since the implementation of LPS (Late Payment Surcharge) rules in 2022 by the Power Ministry, clearing of dues have been streamlined.”
‘Supply to Bangladesh on’
When asked if the power supply to Bangladesh has been affected due to the current political turmoil in the country, the official said, “Supply is continuing.” Highlighting the presence of a few Indian players supplying power to Bangladesh, a company executive said, “And even under the current circumstances, everybody’s supplying power. Because not supplying power will also mean defaulting on the contract,” he said.
Once a new government is formed, things will settle down. Meanwhile, the authorities there have requested cooperation, the official said.
“We will continue to supply till further communication or instructions from the Indian government (Ministry of Power),” he said.
In 2018, SEIL had won tender, floated by the Bangladesh Power Development Board to supply 250 MW power to Bangladesh over a 15-year period.
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