The Commission also granted permission to KSEB to sign a PPA with TP Saurya, a wholly-owned subsidiary of Tata Power Company, and directed KSEB to submit a copy of the PPA with the Commission. Earlier, KSEB had filed a petition for the approval of the PPAs signed with NTPC and Tata Power Company for procuring 90 MW of solar power from NTPC and 110 MW from Tata Power Company at the adopted tariff of ₹2.97 (~$0.041)/kWh and grant permission to sign the PPA with TP Saurya.
KSEB had floated the tender to procure 200 MW of solar power in September 2020. NTPC and Tata Power were declared the successful bidders in the reverse auction. NTPC was awarded 90 MW at ₹2.97 (~$0.041)/kWh, and 100 MW was awarded to Tata Power Company. KSEB issued the letter of award to Tata Power Company on January 6, 2021.
In its earlier order dated June 21, 2021, the Commission had approved the PPA with NTPC to procure 90 MW of solar power at ₹2.97 (~$0.041)/kWh. KSEB, in its submission, said that Tata Power Company intended to execute the PPA through TP Saurya and had requested KSEB to seek the permission of the Commission to that end.
The Commission noted that, as per the agreement dated March 23, 2021, between Tata Power Company and TP Saurya, Tata Power Company had stated that it was completely absolved from its obligation as a bidder from the date of signing the agreement. The Commission noted that it was Tata Power Company that had participated in the bid and was declared successful. However, as per the present agreement, Tata Power Company wanted to transfer all obligations under the PPA to TP Saurya. During the second hearing held on June 8, 2021, the Commission clarified that Tata Power Company, as the successful bidder, had agreed to supply 110 MW solar power to KSEB as per the bid. Therefore, it could not be absolved from its obligations under the PPA, which is to be signed by TP Saurya on behalf of Tata Power Company. The Commission asked Tata Power Company to make amendments to the agreement with TP Saurya.
News Source : Construction World