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Oman-based Tanweer Infrastructure Pte Ltd, which operates one of India’s largest independent power plants in Andhra Pradesh, is poised to address the states power supply challenges. This move follows the Andhra Pradesh governments recent release of a white paper on the states power sector.
The company is preparing to finalize a contract with the Andhra Pradesh government to dedicate an additional unit to the states power supply. Currently, Tanweer operates four units, with one allocated to Andhra Pradesh and the remaining three serving Telangana and Bangladesh. An official revealed that an eight-year contract for supplying 570 MW to Telangana ended in March this year and has yet to be renewed, presenting an opportunity for Andhra Pradesh to utilize this capacity.
Sembcorp Energy India Ltd (SEIL), now owned by Tanweer Infrastructure following a ?11,700 crore (approximately S$2.1 billion) acquisition deal in 2022, manages two supercritical coal-fired plants with a total capacity of 2.6 GW. These include four units in Nellore, each with a 660 MW capacity, which supply power to Andhra Pradesh, Telangana, and Bangladesh under long-term agreements, alongside short-term arrangements with other distribution utilities.
The company has optimized its coal supply through various agreements with Coal India, ensuring operational stability and a domestic coal utilization rate exceeding 95%. Since the implementation of Late Payment Surcharge (LPS) rules in 2022, the clearing of dues has been streamlined.
Despite ongoing political turmoil in Bangladesh, SEIL’s power supply remains unaffected. The company is committed to fulfilling its contractual obligations until further directives are received from the Indian Ministry of Power. In 2018, SEIL secured a tender from the Bangladesh Power Development Board to supply 250 MW of power for 15 years.
Overall, Tanweer Infrastructure’s new unit dedication is expected to significantly alleviate Andhra Pradeshs power supply issues and reinforce its energy stability. |
