Yogi adityanath: The Uttar Pradesh government has taken a big and visionary initiative towards self -sufficiency in the field of energy. It has been decided to buy for 25 years through a total 1,500 MW energy bid processes from the 1,600 MW thermal project on Tuesday in a cabinet meeting held under the leadership of Chief Minister Yogi Adityanath. (Yogi Adityanath)
Private company offering the lowest tariff rate (Rs 5.38 per unit) in the bidding process has been selected for the project. This will save UP Power Corporation (UPPCL) about Rs 2,958 crore in 25 years.
With this new initiative of the Yogi government, Uttar Pradesh will start getting 1,500 MW from 2030-31 at very affordable rates. This new project is far more economical than existing and upcoming thermal projects, where electricity is getting from Rs 6.6 to Rs 9 per unit from projects like Jawaharpur, Obra, Ghatampur, Panki, while power will be available at a rate of only Rs 6.10 per unit after the commission in 2030-31 under this project proposed under DBFOO.
Energy Minister AK Sharma informed about the decision of the cabinet. He said that to meet the demand for energy in the state and to make Uttar Pradesh self -sufficient, we have decided to buy some energy from the bidding process. In the same episode, we have moved forward with the 1,600 MW power plant. Our condition was that only when the plant is set up in Uttar Pradesh, we will buy power. As part of the procedure, a request for qualification was issued in July 2024, in which 7 companies came.
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Of these, 5 companies participated in the request for proposal (Financial Bid). In the five companies, with the private company whose quotation was the lowest, he introduced a minimum bid of 5.38 per unit, including a total tariff of Rs 3.727 per unit in fixed charge and Rs 1.656 per unit in fuel charge in fixed charge and Rs 1.656 per unit, which was accepted. The Power Supply Agreement (PSA) will be signed on this tariff for a period of 25 years.
He said that this private company did a similar process with Maharashtra in August last year. Our deal is somewhat cheaper than that. Not only this, even before this, we have had big power purchases agreement, the current deal is also cheaper than that. The electricity of the power plants that are in our power plants, which has been done, will also be much cheaper than the current process. When the power plant is ready in 2030-31, the tariff will still be Rs 6.10, which will be cheaper than the electricity of our public plants.
According to the study by the Central Electricity Authority and the Uttar Pradesh Electricity Regulatory Commission, the state will need additional thermal energy of about 10,795 MW by the year 2033-34. Along with this, a roadmap has also been prepared for 23,500 MW renewable energy. The bid process was initiated under the DBFOO model to meet the demand for thermal energy.
This thermal project will start in the financial year 2030-31. This will not only meet the need for base load energy, but will also provide stable and inexpensive electricity to industries and domestic consumers in the state. (Yogi Adityanath)
DBFOO means design, build, finance, on and operate is a system in which the private company manufactures, funding, ownership and operations the project itself. The government only gives coal linkage and purchases power.
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