The PPA is valid for a period of 25 years from the start of commercial operations. Under the terms of the PPA, EPJL will supply power to BSEB at a levellised tariff of INR2.64 per kWh (approximately US cents 5.62 per kWh).
EPJL was awarded the contract following a competitive bidding process. EPJL is required to make available 25% of Tori I capacity to the Jharkhand government with a right of first refusal to the government and a further 12% capacity to be supplied to the government at variable cost. The balance of power from Tori I can be sold by EPJL in the open market.
The Tori I project will be a pit-head coal-fired plant comprised of two generation units of 600MW capacity each. The project will source coal from the nearby Chakla and Ashok Karkata coal blocks that were allocated to this project in 2007.
These mines will be developed and operated by EPJL and first coal will be delivered to the power plant through a dedicated conveyor system from the Chakla coal block. EPJL has applied to the Government of India for a temporary coal linkage of 5.4mmtpa from Coal India for in the event that the Chakla coal mine does not comments operations in time for the start-up of the power station.
