Indiabulls, BEST ink pact for power supply

After Tata Power, Indiabulls is all set to become the second largest power supplier to the BEST Undertaking.

The Undertaking has signed a power purchase agreement — the second largest in its history — with Indiabulls which will supply 300 megawatt every day for 25 years starting 2016.

The BEST committee on Tuesday approved the agreement. 
“Looking at the rate of development, we expect the demand in Mumbai to touch 1,300 megawatt by 2016. This will be the first time that we are buying power for a long term from a private party, apart from Tata Power,” said OP Gupta, general manager, BEST.

The state government’s proposed Dharavi redevelopment plan and the construction of a business district in Wadala by Mumbai Metropolitan Region Development Authority are likely to push the demand for electricity.

As per the agreement with Indiabulls, the company will supply power at Rs3.42 per unit as the base price for 25 years. As per the BEST’s current agreement with Tata Power, which will expire in 2016, the company supplies 932 MW at a price of Rs3.54 per unit.

The BEST will start a fresh bidding process by 2013-end  for a long-term supply of 1,000 megawatts so that it has the capacity to supply 1,300 megawatts by 2016.

“If we need power over and above that, we usually go to the power exchange or buy it from the open market. However, the price in the open market is higher,” Gupta said.

Recently, the BEST purchased 50 megawatts for Rs4.56 per unit from the open market to make provision for the peak demand during summer.