You have to have the final capability so you can implement the project without any guarantee or escrow. Signed deals Five years ago, the state signed power purchase deals with 14 private firms. Three of them are already generating power at rates higher than the state would now like to pay. They will continue to get these rates but the 11 unbuilt units face an uncertain future. The 11 plants involve 2,000 megawatts of capacity, half of which would be supplied by the Mangalore Power Co from which US-based Cogentrix exited in 1999, citing litigation and delays in government approval.
Policies do change based on our experience.
Those who are serious can sit with us and sort out their problems. Power tariffs vary, depending upon foreign exchange rates and the type and prices of fuels. Three projects which are already generating power get about Rs 3-4 per unit. The 11 uninstalled plants had comparable rates. One generating firm, Jindal Tractabel, which uses coal and gas, gets about Rs 2.60.