TIL Desk/Business/New Delhi/ Uttar Pradesh Power Corporation will get 40 paise per unit cheaper electricity from Prayagraj Power Generation Company’s plant at Bara in Prayagraj district, which will translate into savings to the tune of Rs 500 crore annually.An arm of Tata Power-backed Resurgent Power Ventures, Renascent Power Ventures — which has acquired 75.01 per cent stake in the Bara power plant — will be offering 40 paise per unit cheaper electricity to Uttar Pradesh Power Corporation Ltd (UPPCL) under revised terms of power purchase agreement, a source said.
UPPCL is the company responsible for electricity transmission and distribution within the Indian state of Uttar Pradesh. The revised PPA would also be approved by the state power regulator while disposing off the plea. A plea for change in ownership of Prayagraj Power Genreation Company Ltd (PPGCL) is under consideration of Uttar Pradesh Electricity Regulatory Commission (UPERC), which is expected to be decided this month. The next hearing is scheduled on Wednesday.
The source further said that since the acquisition is at deep discount, UPPCL is keen on passing the benefits to consumers reeling under high energy tariffs. The average pooled power purchase cost of the UPPCL is around Rs 4.40 per unit. The UPERC has also asked UPPCL to explain the benefit that would accrue to consumers, with takeover of the PPGCL by Resurgent Power.
