BRIEF
A thermal power generation company with an installed capacity of 90 MW (two units of 45 MW each) located in Narsinghpur District, Madhya Pradesh. The company operates over a 120-acre site and sells power under long-term Power Purchase Agreements (PPAs) with the Government of Madhya Pradesh. The asset presents an opportunity for investors to acquire a fully operational power plant with secured offtake arrangements.
Key Highlights
- Location & Project: 90 MW coal-based thermal power project located at Village Newari, Tehsil Gadarwara, Dist. Narsinghpur, Madhya Pradesh.
- Plant Capacity: Two units of 45 MW each (Unit-1 operational since April 2012; Unit-2 operational since March 2017).
- Land: Spread across ~120 acres.
- Offtake Arrangement: Long-term PPAs with Madhya Pradesh Government and MPPMCL. Tariff between ₹5.98 – ₹6.02/kWh for FY25–FY29.
- Fuel Source: Coal linkage from Coal India Limited and permission to use multiple fuels (coal, pet coke, biomass).
Products & Services
Power Purchase Agreements
- 27 MW PPA (executed Jan 2011): 20-year agreement with GoMP-nominated agency for 30% of total capacity (27 MW).
- 5% Concessional Energy PPA (executed May 2011): Power to be purchased by MPPMCL on behalf of GoMP.
Ownership & Governance
It is a privately held company incorporated on 08 November 2006 with its registered office in Mumbai. The company’s management and shareholding pattern are disclosed in the teaser document.
Reason for Stress
- NGT Order (May 2017): Ban on Pet Coke without Pollution Control Board approval led to suspension of capacity charges by MPPMCL.
- APTEL Ruling (April 2018): Allowed recovery of capacity charges but capped energy charges at ₹2.18/kWh, below fuel cost, causing severe cash flow issues. Resulted in NPA classification in September 2018.
- Supreme Court Order (Jan 2019): Stayed the cap on energy charges, enabling recovery at actual costs. Plant operations resumed in April 2019 after suspension.
- COVID-19 Lockdown (March–May 2020): Adversely impacted operations and reduced demand due to limited economic activity.
Additional Information
Asset & Infrastructure Overview
- 90 MW operational coal-based thermal power capacity.
• Spread across 120.27 acres.
• Plant operations supported by coal linkage and multi-fuel approval from the Pollution Control Board.
• Strategic location with grid connectivity for supply to state distribution companies.
Strategic Opportunity
The project offers an attractive investment opportunity for strategic investors, independent power producers, and infrastructure funds seeking:
• Entry or expansion in the Indian thermal power sector.
• Long-term PPAs ensuring revenue visibility.
• Opportunity to optimize operations with multi-fuel flexibility.
• Potential for value creation through resolution of past regulatory issues and improving plant efficiency.
