Leading private utility Adani Power is actively evaluating opportunities in different parts of the world, especially in developing nations.
Adani Power, which currently has an installed capacity of 4,620 MW, has said it could look at bidding for coal-based Ultra Mega Power Projects (UMPPs) having a capacity of 4,000 MW and above.
"The company may evaluate UMPPs, coal based power projects with a capacity of 4,000 MW or above, as and when they come up for bidding. "Further, various international projects are also being actively evaluated in attractive markets around the world with a focus on developing nations," according to the company's 2011-12 annual report.Globally, the firm would look at power sector opportunities in generation, transmission and distribution segments.
Adani Power along with subsidiaries is developing and planning projects having a combined capacity of 16,500 MW. Out of the total, about 10,000 MW is expected to be commissioned by March, 2013.
"The company intends to sell the power generated from these projects under a combination of long-term PPAs (Power Purchase Agreements) and on merchant basis," the report said. It is in advanced stages of implementing the 3,300-MW project at Tiroda in Maharashtra and the 1,320-MW project at Kawai in Rajasthan. Both are to be fired by coal. Meanwhile, the annual report said the "biggest grievance" of private sector has been the long process of clearances, securing fuel linkages and delays in land acquisition.
"Inadequate domestic supply of quality fuel—coal and gas —results in higher costs of generation. "Additionally, domestic coal deficit can only be covered partially by imported coal due to transportation bottlenecks at ports, high prices of imported coal, volatility in exchange rates and lack of demand for such expensive power," the report said.
Further, the company noted that imported coal prices have been vastly affected due to change in policy and regulations in coal-exporting countries. "Most of the state utilities are loss-making. Over the long term, unless AT&C (Aggregate Technical & Commercial) losses are reduced, the ability of state utilities to meet their obligations will be of grave concern," it added.