Power plants have quoted high tariff in the latest round of auctions of electricity supply contracts, casting doubt on acceptability of the price by state distribution companies.
The high bids took the sector by surprise as it expected a lower tariff following changes in auction rules by the Centre, heeding to the demands of power companies. The power ministry had kicked off the scheme to salvage stressed assets idling due to lack of PPA opportunities.
Fifteen power plants of companies like JSW Energy , Jaiprakash Associates, Jindal Power, Sembcorp Gayatri and Essar Power bid for securing the threeyear power purchase agreements (PPAs) with states. The reverse e-auction for the PPAs was held on Thursday with a base price of Rs 4.7 per unit.
The lowest price discovered during the auction was Rs 4.41 per unit, at which supply bids aggregating to 2,520-mw have been received, sources said. Read More