Mahadiscom seeks to rope in IPPs

In order to find out a long term solution to the state's power woes, the Maharashtra Electricity Distribution Company (Mahadiscom) has sought permission from the Maharashtra Electricity Regulatory Commission (MERC) to rope in independent power producers (IPPs). The company's plan is to invite bids to supply as much as 4,000 megawatt (Mw) power from IPPs.

A top source in the power ministry told Business Standard, "We expect the state's demand for power to go up by around 10,000-11,000 Mw in the next six to seven years and we have prepared a plan not only to meet this demand, but also to make Maharashtra, a power surplus state."

Elaborating on the plans the source said that Maharashtra Electricity Generation Company (Mahagenco) has plans to increase capacity by 7,000 Mw and that the company was expecting Ratnagiri Gas & Power (RGPPL) to supply 2,100 Mw from the Dabhol plant.

The company has signed a memorandum of understanding (MoU) with the National Thermal Power Corporation (NTPC) for supplying 2,600 mw.

Besides, the company was also going to invite bids from IPPs for 4,000 Mw power, which includes all the 12 power producers with whom the company had signed MoUs in the last year-and-half or so, he added. However, he made it clear that power would be bought solely on the basis of the competitive prices offered by the producers to the company.

The move from Mahadiscom to invite bids would help the IPPs to complete their financial closures and move ahead with the construction plans. As and when the bids are finalised, the IPPs would get concrete assurance on the quantity of power that Mahadiscom would buy from them on the basis of which, they can approach financial institutions for financial assistance, sources pointed out.