PTC plans PPAs with firms having surplus power

Power Trading Corporation (PTC) will sign power purchase agreements with companies having surplus captive power of 50 mw and more.

"A study on captive power plants suggested that the country produces around 25,000 mw of which around 10,000 mw was surplus. PTC will enter into agreement with these generators," PTC chairman and managing director T N Thakur said.

PTC had recently issued an advertisement for purchase of surplus power from captive power plants. In response, some 80-odd power plants had offered supply 7,000 mw of power.

PTC has entered into negotiations with Damodar Valley Corporation and North Eastern Electric Power Corporation Ltd for power purchase agreements. "We are negotiating with power producers for a total 3000 mw," Thakur said.

Meantime, PTC is likely to consider the issue of picking up stake in power generating companies.

"As a power trading company, investing in power generating companies was a logical step, more so in companies from which PTC purchased power," Thakur said.

PTC has also offered stake to Reliance Energy (formerly BSES). Thakur said, "We had approached BSES asking them to take a stake in PTC some time back, to which it agreed in-principle. The company had said it would subscribe to the equity of PTC only after the change in management was effected."

The management change was effected last week. "In the meantime, PTC decided to go ahead with the initial public offer under which Reliance Energy can take any stake," Thakur said.

Sources said PTC had offered around 17 per cent each to Reliance Energy and Tata Power.