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November 10, 2010

AP, Karnataka, Tamil Nadu and Maharashtra succeed in forcing Reliance to change its decision to reduce power distribution to them

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  • Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra - have succeeded in forcing Reliance to change its decision to reduce power distribution to them from the Krishnapatnam Ultra Mega Power Project near Nellore. Earlier, Reliance had informed that it could only supply them 3,740 mw with a change of machinery design. The above mentioned four states objected to this and complained to the Central Electricity Regulatory Commission, charging Reliance with unilaterally reducing power allotments. Now, in a formula decided by the Centre, Reliance has consented to supply 4,000 mw power to these four states. Bowing to pressure from all quarters, Reliance Krishnapatnam UMPP has agreed to maintain energy neutrality so that all four southern states will get 4,000 mw power.
  • In a meeting between representatives of these four states and Reliance Coastal Power Limited (SPV of Krishnapatnam UMPP) it was decided to run the plant at 82.5 plant load factor to give full energy to all power-sharing states. At the same time, Reliance agreed not to claim incentive for higher PLF. Now, the agreement has been placed before CERC for its approval. "With this our state will get about 1,600 mw power from this UMPP," said a senior APTransco official. The state would have lost about 120 mw power had the Reliance plan to reduce overall generation been accepted.

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