Sembcorp's India power plant inks 8-year power purchase deal

SEMBCORP Industries' power plant, Thermal Powertech Corporation India (TPCIL), which owns and runs a 1,320-megawatt coal-fired power plant in Krishnapatnam in Andhra Pradesh's SPSR Nellore district, has signed a long-term power purchase deal with the Telangana Power Distribution Companies.

Under the agreement, 570 megawatts of power will be sold to the Southern and Northern Power Distribution Companies of Telangana for eight years.

Together with the 500 megawatts of power supplied to the Andhra Pradesh and Telangana Power Distribution Companies under another 25-year power purchase deal, TPCIL has secured more than 85 per cent of its net total generating capacity.

The US$1.5 billion coal-fired power plant completed its first 660-megawatt unit in March 2015 and second 660-megawatt unit in September 2015.

The plant is more efficient and environmentally friendly compared to conventional coal-fired power plants as it uses "supercritical technology", Sembcorp said.

Atul Nargund, CEO of TPCIL, said: "With this, TPCIL is now eligible for megapower status. In addition, operationally the plant is performing well and achieving good plant load factors."

The deal most likely will not have a big impact on Sembcorp's earnings per share and net asset value per share for the current financial year.