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.