As per the LOI, 300 hectares of land, presently in possession of Madhya Pradesh State Electric Board along with the infrastructure facilities, shall be transferred to APL. First unit of 660MW shall be commissioned within a period of 42 months from the date of the LOI. Besides, energy department of the MP government will also support and make recommendations to the Government of India for obtaining coal linkage and captive coal block for the project.
The Government of MP has reserved water required for this project from Pench river. As per the LOI, 10% of net energy generated from the project shall be supplied by APL to the state government at variable cost to be determined by appropriate commission. Besides, the MP government has the first right to purchase power up to 40% of aggregate capacity of the project for a period of 20 years at such tariff.
Gautam Adani, chairman of Adani Group, said: “We are pleased to receive this LOI from MP government which reflects their faith in Adani Group’s capability to implement this project. With the addition of this project, total generation capacity would cross 13,000MW which is in line with our shared vision to put up 20,000MW by 2020.”
APL, along with its subsidiaries, is developing power projects including 4620MW at Mundra in Gujarat, 3300MW at Tiroda in Maharastra, 1320MW at Kawai in Rajasthan and 2640MW at Dahej in Gujarat totaling to 11,880MW.
