The Board of Directors of Mudajaya is pleased to announce that MCB has on 3 April 2017, received a letter of notification from RKM stating that its Unit 1 has commenced the sale of 200 Mega Watts (“MW”) to several power distribution companies in the State of Uttar Pradesh from 2 April 2017 based on a schedule to supply from Uttar Pradesh Power Corporation Ltd (“UPPCL”) dated 31 March 2017 pursuant to the Power Purchase Agreement dated 15 March 2016. The balance of 150 MW will commence pending an approval from UPPCL subsequent to the Champa-Kurukshetra 800 kV HCDC pole and 765 kV Jaipur-Bhiwani transmission line which was commissioned recently as notified by Power Grid Corporation of India Limited to RKM on 27 March 2017.
The power sales commencement is expected to contribute positively to the earnings of the Group for the financial year ending 2017 moving forward.
We refer to our announcements dated 31 October 2006 and 13 May 2009 in relation to Mudajaya Corporation Berhad’s investment in R.K.M Powergen Private Limited ("RKM").
As for the sale of power to the Chhattisgarh State Electricity Board and PTC India Limited as announced on 31 October 2006 and 13 May 2009 pursuant to the Power Purchase Agreements (“PPAs”) respectively, the terms are being renegotiated by both RKM and the relevant parties which have yet to be finalised.
For Phase 1 of the IPP Project comprising Unit 1, the Board of Directors of Mudajaya is pleased to announce that its 26% owned associated company, RKM in India has notified Mudajaya Corporation Berhad on 16 March 2016 that it has entered into a PPA for 25 years with several power distribution companies in the State of Uttar Pradesh on 15 March 2016 for the sale of 350 MW where the commercial delivery is targeted for October 2016. However, both parties are in discussion for an early supply of electricity as allowed under the PPA, and RKM is confident that in anticipation of the higher demand for power during the summer period, Unit 1 will commence commercial delivery soon.
The power plant has a total capacity of 1,440 MW consisting of 4 generating units of 360 MW each with the development phases comprising Phase 1 (Unit 1) and Phase 2 (Units 2, 3 and 4). RKM has also confirmed on 16 March 2016 that Units 1 and 2 have achieved the commercial operation date and are ready to commence the sale of power. The negotiation for the PPA for Unit 2 is in progress and is expected to be concluded soon. Units 3 and 4 are still work in progress.
The successful commissioning and commercial operations of Units 1 and 2 mark a significant milestone for the Group’s participation in the power sector in India after lengthy delays.
We refer to our announcement dated 28 February 2017 on the status of the Joint Venture between R K Powergen Private Limited and Mudajaya Corporation Berhad (“MCB”), a wholly-owned subsidiary of Mudajaya for a coal-fired Independent Power Producer project in the State of Chhattisgarh, India.
We wish to inform that MCB has on 3 March 2017, received a letter of notification from R.K.M Powergen Private Limited (“RKM”) on its intention to supply power generated from Units 1 & 2 to Uttar Pradesh Power Corporation Ltd (“UPPCL”) with whom RKM has executed a Power Purchase Agreement for the supply of 350 MW power. The tariff was approved by Uttar Pradesh Electricity Regulatory Commission (“UPERC”) on 1 February 2017. Subsequently, UPPCL filed a Review Petition seeking certain modifications. Upon the passing of orders by UPERC on the Review Petition, UPPCL will issue the Notice of Despatch for the commencement of power supply by RKM. In preparation for the supply of power to UPPCL, Unit 1 was in operation for testing purposes and has been selling power generated to the Indian Energy Exchange.
Further announcement on any material development of the above matter will be made to Bursa Malaysia Securities Berhad in due course.
There are also other factors to be seen example can they manage their debts, and start giving out good profit,, like before many years ago when they does not have debts at all
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