Last checked at 5 Feb 2009 07:00
OPG POWER VENTURES Plc
Power supply contracts at higher rates
OPG Power Ventures Plc ("The Group" or "OPG"), the developer and operator of group captive power plants in India, is pleased to announce that it has agreed contracts at an increased tariff for about half of the Group's current installed capacity.
Contract highlights:
New tariff of Rs 6.70 per Kwh represents an increase of more than 65% on the current captive customer rate;
14.81 MW's of the Group's current installed capacity is to be sold at this increased tariff.
Under the terms of these new contracts OPG will supply 14.81 MW of power, about 50 % of the Group's current installed capacity, at the increased average tariff of Rs 6.70 per Kwh compared to the captive power rate of Rs 3.6 to Rs 4.00 per Kwh.
Contracts for 11.31 MW of power supply have already become effective and the corresponding throughput of power is already under supply at the increased rates. Contracts relating to the remaining 3.5 MW of power are expected to commence during February 2009.
The contracts are with a combination of private and state customers. The terms of the contracts will be for periods of between 3-5 months, although the Directors anticipate, given the continuing power shortages, these are likely to be renewed or replaced.
Commenting on the contracts, Arvind Gupta, Chief Executive Officer of OPG said:
"We are delighted to be achieving rates significantly higher than previously realised. These contracts reflect both the shortage of power and our supply capabilities. Whilst the contracts are relatively short in duration, given the continuing power shortages we expect them to be renewed over time."
Please note that the Company's website is now www.opgpower.com/
| OPG Power Ventures Plc | |
| Arvind Gupta (Managing Director) | +91 (0) 98400 96299 +91 (0) 44 429 11 222 |
| V. Narayan Swami (Finance Director) | +91 (0) 99400 17927 +91 (0) 44 42911214 |
| Martin Gatto (Senior Non Executive Director) | +44 (0) 7778 749 223 |
| Cenkos Securities (Nominated Adviser & Broker) | +44 (0) 20 7397 8900 |
| Stephen Keys/ Camilla Hume | |
| Tavistock Communications | +44 (0) 20 7920 3150 |
| Simon Hudson / Nick Peters/ Andrew Dunn |
Note to editors:
OPG Power Ventures Plc is a profitable developer and operator of power plants in India. India's rapid economic growth has been constrained by power shortages and the government has deregulated the industry with a new open market framework allowing developers into the market. The Group Captive Power Producers Scheme, introduced in 2005, allows companies such as OPG to build new power plants to supply electricity directly to groups of customers at mutually agreed prices and the Company has substantial capacity expansion plans.
OPG has two plants in profitable operation, a further two under construction and two more in the pipeline for medium term development. Taking advantage of the new regulatory environment, OPG's pipeline includes a further five power plants with the capacity to generate 5.5 GWs. Planning for these plants is at an early stage. OPG has secured £125m financing for the Company's 2x150 MW power stations, which will be commissioned in the first half of 2011.