Reliance Power terminates PPA for Tilaiya UMPP

 Reliance Power has announced that its wholly-owned subsidiary, Jharkhand Integrated Power Limited (JIPL), has terminated the Power Purchase Agreement (PPA) of its 3,960 MW Tilaiya Ultra Mega Power Project (UMPP) in Hazaribagh, Jharkhand.
Based on tariff-based bidding managed by Power Finance Corporation (PFC), Reliance Power was awarded the Tilaiya UMPP in February 2009. JIPL, the Special Purpose Vehicle (SPV) for implementing the project, was handed over to Reliance Power by PFC in August 2009. JIPL has signed a PPA with 18 power off-takers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.
According to a company press release, the PPA requires procurers to hand over the possession of the land for the power station and water intake pipeline by February 2010. Other development period obligations included issuance of notice under Section 9 of the Land Acquisition Act in respect of land for coal mines and fuel transportation systems. Besides, site clearance was required from the ministry of environment and forests (MoEF) for the coal mines.
In spite of more than 25 review meetings and extensive and continuous follow-ups with the Jharkhand government over the last five-and-a-half years, the required land is yet to be made available.  “Considering all these facts, JIPL has decided to terminate the PPA with the procurers. This decision will reduce the future capex pipeline of Reliance Power by nearly Rs 36,000 crore,” the statement adds.

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Reliance Power terminates PPA for Tilaiya UMPP

 Reliance Power has announced that its wholly-owned subsidiary, Jharkhand Integrated Power Limited (JIPL), has terminated the Power Purchase Agreement (PPA) of its 3,960 MW Tilaiya Ultra Mega Power Project (UMPP) in Hazaribagh, Jharkhand.
Based on tariff-based bidding managed by Power Finance Corporation (PFC), Reliance Power was awarded the Tilaiya UMPP in February 2009. JIPL, the Special Purpose Vehicle (SPV) for implementing the project, was handed over to Reliance Power by PFC in August 2009. JIPL has signed a PPA with 18 power off-takers in 10 states for 25 years. For fuel security, the project was allocated Kerendari BC captive coal mine block.
According to a company press release, the PPA requires procurers to hand over the possession of the land for the power station and water intake pipeline by February 2010. Other development period obligations included issuance of notice under Section 9 of the Land Acquisition Act in respect of land for coal mines and fuel transportation systems. Besides, site clearance was required from the ministry of environment and forests (MoEF) for the coal mines.
In spite of more than 25 review meetings and extensive and continuous follow-ups with the Jharkhand government over the last five-and-a-half years, the required land is yet to be made available.  “Considering all these facts, JIPL has decided to terminate the PPA with the procurers. This decision will reduce the future capex pipeline of Reliance Power by nearly Rs 36,000 crore,” the statement adds.

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