JSW Energy's long-term power purchase tender for Karnataka expires

Analysts say long-term contracts to elude as merchant rates trade low

JSW Energy Ltd's awaited long-term power purchase agreement with the Karnataka government has fallen through, forcing the company to look for short-term options, according to people with direct knowledge of the development.

JSW Energy had won a tender to supply 750-megawatt power to the Karnataka state electricity board (SEB) in July at Rs 4.38 per unit on a three-year contract. However, the tender never materialised into a long-term power purchase agreement. 

"The tender was to expire in November, however, in the absence of PPA (power purchase agreement) signed, it has now fallen off," said a person familiar with the development. A second