Stalemate Continues Over PPAs Between Maharashtra Government, Sugar Mills


Stalemate Continues Over PPAs Between Maharashtra Government, Sugar Mills

A meeting between Maharashtra chief minister Devendra Fadnavis and Nationalist Congress Party (NCP) chief Sharad Pawar, also the chairman of Vasantdada Sugar Institute (VSI) to find a solution to the power woes of the state’s sugar sector, ended in a stalemate. While top officials of Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) claimed that the CM has agreed in-principle to ink power purchase agreements (PPAs) with millers for their co-generation projects and issued instructions for going ahead with the PPAs, the state’s cooperation minister Subhash Deshmukh says that while there is no dispute over signing of PPAs, the rate for power continues to remain a major hurdle. Millers have been demanding rates as high as Rs 6.50 per unit which is not acceptable, he said. Fadnavis had earlier assured the sugar industry of speeding up the process of purchasing electricity produced by the co-generation units. However, he has been asking millers to be prepared for a probable downward revision in the purchase price of power.

“Seek fair rates because there are several proposals waiting in the pipeline offering power at rates as cheap as Rs 2.38 per unit without any investment from the government,” he had said. Deshmukh has been asking sugar millers to seek fair rates for power for their co-generation projects instead of demanding rates as high as Rs 6.50 per unit. Sugar millers in the state have set up these co-generation plants with an investment of about Rs 2,500 crore.  Read More…

Leave a Reply

Your email address will not be published.