Adani Power Ltd, which completed the acquisition of Udupi Power Corporation Ltd (UPCL) from Lanco Infratech, says it will sort out the coal shortage problem and increase the plant load factor (PLF) of the 2×600-MW thermal power plant in Yellur in Dakshina Kannada district.
At the present, UPCL’s PLF is around 60 per cent. In the coming months, the company plans to increase it substantially to around 90 per cent.
UPCL depends entirely on imported coal for power generation. Of its total production, around 90 per cent is consumed in Karnataka, while the company has rights to sell the rest elsewhere. Through its power purchase agreement, UPCL sells power to Karnataka-based electricity supply companies at an average of ₹4.05 a unit.
After UPCL’s integration with Adani Power, Rajesh Adani, Managing Director, Adani Group of Industries, called on Karnataka Chief Minister Siddaramaiah and Energy Minister DK Shivakumar.
“We have just taken possession and integrated UPCL to our company. The production is going on and there have been no stoppages,” Rajesh Adani told BusinessLine.
“All problems including the debt of UPCL have been taken over by us. Now, slowly we are coming into the picture. We will sort out coal shortage and other operational issues which are plaguing UPCL,” he added.
Adani’s meeting with the chief minister is coming at a time when the Karnataka Electricity Regulatory Commission and the Karnataka High Court are hearing a tariff issue complaint by the company against the state government.
A senior state government official said the Karnataka government owes UPCL around ₹1,000 crore due to tariff dispute.
Emerging out of the meeting, Energy Minister Shivakumar said: “Rajesh Adani’s visit is a courtesy call after they bought UPCL and they have asked for the state government’s cooperation.”
“In turn, the state government has asked the company to fulfil all the promises made by Lanco Infratech to the local community in the plant’s neighbourhood in Dakshina Kannada,” he added.
Adani Power is yet to take a call on expansion of UPCL’s power generating units. The company way back in 2010 had its expansion plan approved.