MP govt to sign three agreements for generating 4,000 MW of thermal power

The Madhya Pradesh government will ink three agreements with companies on Tuesday for the production of 4,000 MW of thermal power with an expected investment of Rs 60,000 crore.

Following the state government's approval for the procurement of 4,000 megawatts of electricity from new thermal power projects, MP Power Management Company Limited has successfully completed a competitive bidding process on a DBFOO (Design, Build, Finance, Own & Operate) basis for new thermal power plants to be established in the state, Additional Chief Secretary to Chief Minister and Energy Department, Neeraj Mandloi, told PTI on Monday.

Three successful developers have been selected for a capacity of 3,200 megawatts under the tender, and an additional 800 megawatt capacity has been allocated under the greenshoe option, he said.


"These projects are expected to bring in direct investment of approximately Rs 60,000 crore to the state and create approximately 3,000 direct and 5,000 indirect employment opportunities," said Energy Minister Pradyumn Singh Tomar.

Accordingly, Hindustan Powerprojects Private Limited has been allocated 800 MW, Torrent Power Limited 1,600 MW, and Adani Power Limited 800 MW, with an additional 800 MW under the greenshoe option, he said.

A greenshoe option in the context of a power plant is a provision that allows the buyer of power (usually a government or utility company) to increase the initially awarded capacity of the project under the same terms and conditions as mentioned in the original contract, an official said.

The power supply agreements (PSAs) for all these capacities have been entered into with Special Purpose Vehicles (SPVs) formed by the selected developers, the official said.

All the proposed thermal power projects will be established in the Anuppur district of the state, he said.

Under the above power supply agreements, power supply is expected to be available from the year 2030, the official added.