Power flows from Lanco’s 300 MW Amarkatak unit to Madhya Pradesh

Power started flowing  on Saturda from the first unit of Lanco Infratech's 2x300 MW Amarkatak thermal power project in Chhattisgarh to the Madhya Pradesh state grid after the state electricity regulator, MPCERC, approved the revised power purchase agreement signed among Lanco, Power Trading Corporation and the state power distribution companies.

Lanco is operating the 2 x 300 MW Lanco Amarkantak power plant near Pathadi village in Korba district in Chhattisgarh. This is Lanco Group's first domestic coal based plant, using coal from nearby mines of South Eastern Coalfields Limited (SECL).

Power supply to Madhya Pradesh from the plant could not commence due to certain disputes in the power purchase agreement (PPA) signed in 2005. The longstanding dispute has been resolved with MP Power Management Company (MPPMC), which represent the state discoms, PTC and Lanco coming together to reach a settlement.

''We are pleased to be entrusted with the supply of power to distribution companies in Madhya Pradesh from Lanco Amarkantak Thermal Power Station which is operating 2x300 MW power plant.

The revised PPA benefits Madhya Pradesh with supply of 300 MW of power on a long term basis at one of the lowest tariffs in the region determined as per CERC Regulations,'' L Madhusudhan Rao, chairman of LITL, said.

The three parties reached an agreement on 16 October 2012, marking an end to the litigations at various forums and paving the way for commencement of supply of 300 MW from Lanco Amarkantak Unit 1 to discoms of MP through PTC/MPPMC on long-term basis as per CERC regulations with fuel as passthrough.