Rithwik Power Plant

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In March 2000, Non-Conventional Energy Development Corporation of Andhra Pradesh Limited (NEDCAP) approved the development of a 6 MW biomass power plant in Rithwik district of Andhra Pradesh State by Rithwik Energy Systems Limited (RESL) on BOO (build-own-operate) basis. All the power from this project was supplied to APTRANSCO, the electricity transmission company for the state of Andhra Pradesh, under a long term power purchase agreement (PPA) signed in February 2002. The PPA was for an initial period of 20 years (from commercial operations date) with a possibility of renewal for an additional term upon mutual agreement by the parties. The fuel used for the plant was generally agricultural waste, including rice husk, ground nut shell and agro waste. The fuel required for the power plant was procured from farms in nearby villages under short-term contracts. RESL, a special purpose company, was majority owned by India’s Lanco Group (56.7%). Information on the other promoters of RESL was not available from public sources. The total cost of this power plant was estimated at US$ 6.0 million (Rupees 278 million). The project reached financial closure in 2002. In April 2006, RESLL signed an emission reduction purchase agreement for trading of the issued Certified Emission Reductions (CER), pursuant to the clean development mechanism (CDM), with Electricity De France (EDF). The project began commercial operations in September 2002.