According to a source close to the development, UPPCL has decided to lower the power purchase tariff by 32 paise per unit from February 1, citing KSK’s inability to supply electricity.
KSK, in turn, has argued that it failed to buy coal as several discoms had delayed payment for power supply.
The source said Adani Power had informed the lenders that it might consider making a bid for KSK in the NCLT as and when the company was referred for debt resolution.
An email sent to the Adani group did not elicit any response.
KSK Mahanadi has a partly operational 3,600-Mw thermal power plant in Chhattisgarh. The 3,135-Mw power generated by KSK is supplied to the distribution utilities in Andhra Pradesh, Tamil Nadu, Chhattisgarh, Gujarat, and Uttar Pradesh. KSK has a 25-year power purchase agreement with Uttar Pradesh to sell 1,000 Mw of power.
Adani’s earlier plan was to acquire three stressed projects — KSK, Korba West Power Company, and GMR’s Chhattisgarh project. On April 8, Adani Power informed the stock exchanges that it had been awarded the letter of intent for Korba West Power Company, which is undergoing the bankruptcy process in the NCLT. Adani Power has an operational capacity of 10.4 Gw across Mundra (Gujarat), Tiroda (Maharashtra), Kawai (Rajasthan), and Udupi (Karnataka).
On April 12, the Central Electricity Regulatory Commission (CERC) approved the supplementary PPA for 2,000 Mw capacity between the Gujarat government-owned discom and Adani Power’s Mundra plant (APML).
This comes as a relief for Adani Power, in view of the mounting losses at APML — Rs 9,500 crore up to fiscal year 2018.
Analysts say Adani Power’s entire capacity is coal based with a blend of imported (AEL) and domestic (CIL) coal procured through linkages. Though linkages are in place (except 2.6 Gw Tiroda extention and Kawai where coal has been allocated under the SHAKTI programme), coal availability could be a challenge, they say.
“The resolution of Mundra plant could be a turning point for APL. APL has filed for compensation (under litigation) with various discoms primarily in lieu of non-availability of coal. Realisations from filed compensation could positively impact APL,” said an Edelweiss note to its clients dated April 12.