Thermal Powertech Corporation India Secures 8-Year Power Purchase Agreement With Telangana Power Distribution Companies

Sembcorp Industries (Sembcorp) is pleased to announce that Thermal Powertech Corporation India (TPCIL), which owns and operates a 1,320-megawatt coal-fired power plant in Krishnapatnam in Andhra Pradesh’s SPSR Nellore district has signed a long-term power purchase agreement (PPA) with the Telangana Power Distribution Companies. Under the power purchase agreement, 570 megawatts of power will be sold to the Southern and Northern Power Distribution Companies of Telangana for a period of eight years.

Together with the 500 megawatts of power supplied to the Andhra Pradesh and Telangana Power Distribution Companies under a 25-year power purchase agreement, TPCIL has secured more than 85 percent of its net total generating capacity under long-term power purchase agreements. The approximately US$1.5 billion coal-fired power plant, which has a total capacity of 1,320 megawatts, completed its first 660-megawatt unit in March 2015 and second 660-megawatt unit in September 2015.The plant is more efficient and environmentally-friendly compared to conventional coal-fired power plants as it uses supercritical technology.

Atul Nargund, CEO of TPCIL, said, “We are pleased to sign this long-term PPA with a progressive state such as Telangana. With this PPA, we have achieved our goal of securing at least 85 percent of our generating capacity on a long-term basis. With this, TPCIL is now eligible for mega power status. In addition, operationally the plant is performing well and achieving good plant load factors.”

The signing of the agreement is not expected to have a material impact on the earning per share and net asset value per share of Sembcorp Industries for the current financial year.