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RETL signs PPA with Purti Sugar Mills

Wednesday, 31 Jan 2007
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On 31 January 2007, Reliance Energy Trading (RETL), an Anil Dhirubhai Ambani Group company, signed a power purchase agreement with the Nagpur-based Purti Sugar Mills for buying electricity from the Purti Sugar Mills generation plant in Bela in Nagpur district.

As per the PPA, RETL will buy 13-18 MW of power at a rate of Rs.4.16 per unit from the 22 MW power plant at Purti's sugar mill. The contract will be effective from 1 April 2007, is for an initial period of one year and is mutually extendable by two years. Power generation is expected to begin early-February 2007.

Purti Group along with Hindustan Construction Co also plans to set up a 500 MW thermal power plant at Bela. The proposed 500 MW thermal power plant is separate from the existing 22 MW co-generation unit of the company.

Both the companies has jointly applied for the allocation of a coal block for the requirement of 700 tpd of fuel that will be needed for the power plant. The first priority for the coal block had been given to Lohara (West) in Chandrapur district in Vidarbha region of Maharashtra and the second to Chhapiya in Chhattisgarh.

The plant, estimated to cost Rs.2,000 crore, will be erected within 22 months from the day the coal block was allotted to the company.

Purti Sakhar Karkhana Ltd.
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