Pune, 29th December 2021: The Pune Municipal Corporation (PMC) has claimed that purchasing electricity from Open Axis at low rates, would save Rs 12 crores.
However, to save this amount the PMC needs to set up a project of Rs 250 crore and for this, the civic body will take a loan of Rs 200 crores and a capital investment of Rs 10 crores will be done by the PMC. After this, the corporation will get the electricity at the cost of Rs 75 paise per unit.
The standing committee of the municipal corporation unanimously approved the proposal on Tuesday. After the proposal came up for discussion in the standing committee, it was Municipal Commissioner Vikram Kumar who answered the questions of the corporators and got the proposal approved.
A 20-year power purchase agreement will be signed with Energy Efficiency Service Limited’s (EESL) subsidiary Coverage Efficiency Service Limited (CESL). The Standing Committee approved the proposal to set up a special purpose vehicle (SPV) for this purpose. The proposal will be sent to the Maharashtra state government for approval after it is approved by the general body. After that, SPV will be set up, said Hemant Rasne, chairman of the standing committee.
PMC’s SPV will take a loan of Rs 200 crore. As well as out of the remaining 50 crores, PMC has to invest its own Rs 10 to 12 crores. This will benefit the company, including 26 per cent of shares. This company will not go bankrupt as the PMC will buy the electricity, said Srinivasa Kandul, Chief Engineer, Electrical department
• Project capacity – 50 MW
• The project cost – 250 crores
• Debt Raising – 200 Crores
• Electricity required by PMC – 15 crore units
• Electricity rates of Rs 3.40 and freight charges
• Power supply period – 20 years