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IPP Policy - Need For Review of
IPPs and Formulation of a Policy |
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- After detailed examination of the matter and the above
recommendations of the Committeeon the issue of IPPs, the Government of Karnataka adopts
the following policy on the issue of IPPs:
- The total incremental capacity addition to be encouraged over
ten-year period during FY2000-01 to FY2009-10 would be in the range of 3500-4000 MWs.
- Capacity addition programme comprises of those arising from
out of existing sources as well as new contractual sources, say from State and Central
Sectors, and IPPs.
- Location-specific and load-specific environment-friendly
generation facilities using Non-conventation facilities, would be encouraged, along with
IPPs, so that such projects constitute upto 10% of the electricity consumed by the year
2009-10.
- Naptha/Liquid duel based or Barge-Mounted Projects would not
be encouraged, as they are not cost effective.
- The Power Purchase agreements or arrangements are to be
entered into with the IPPs or others by KPTCL or its successor entities as the case may
be, in the manner approved and as directed by the Karnataka Electricity Regulatory
Commission, under the provisions of the Karnataka Electricity Reform Act, 1999 from time
to time.
- Power Purchase Agreements shall include appropriate provisions
for the following : for making arrangements by KPTCL or its successor entities, safeguards
against commitment to pay exorbitant/avoidable deemed generation charges to IPPs,
commitment on the part of IPPs to pay penalty for not making available the contracted
generation to KPTCL or its successor entities.
- No provision of escrow facilities or similar arrangements and
no provision of any other form of guarantees to any IPP would be available.
- To consider reform-based arrangements, for encouraging
capacity additions, as has been done in the Multi-partite Agreement with IDFC in respect
of RTPS 7th unit of KPCL, with such modifications as may be necessary.
- Projects would be prioritized based on the above mentioned
principles and parameters, the least tariff criterion, timing, and the extent of capacity
requirement synchronized with corresponding evacuation arrangements, on a year-on-year
basis. Further, such prioritization would apply only to the firm projects, which are
expected to occur and fructify from time to time.
- Efforts would be made to encourage procurement of energy from
any other source within or outside the state, if such procurement is on least cost and
available on competitive terms to meet the State's demand for power at a given point of
time.
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