The Tanir Bavi Power Company (TBPC), an independent power producer of the GMR Group, has expressed its willingness to re-negotiate the fixed charge of its power tariffs if the Karnataka government agrees to extend the tenure of the power purchase agreement (PPA).
The company, which has a 220 mw barge-mounted power plant near Mangalore, is ready to offer rates of Rs 1.50 per unit, if the state agrees to extend the tenure of the agreement from 7 years to 15 years or more.
At present, TBPC charges Rs 3.78 per kilowatt-hour (kwh), with variable costs accounting for Rs 1.90 per kwh.
It may be recalled that the power company recently invoked an escrow account to realise a disputed amount of Rs 285.6 crore.
The Karnataka Power Transmission Corporation Ltd (KPTCL) did not have to pay the amount and the matter stood settled as the escrow amount was invoked just before the arbitration process begun.
However, TBPC came out strongly over recent media reports that said KPTCL had recommended a fixed charge of 2 cents per kwh (dollar denomination fixed charge) against its demand of 4 cents per kwh.
