Rana Sugars signs Power Purchase agreement with UP Power Corporation

Rana Sugars Ltd has announced that the Company has signed Power Purchase Agreement with U.P. Power Corporation Ltd for export of Power to the State Electricity Grid which is valid for 20 years, with price escalation clause, from the date of commissioning of its plants at Belwara, District Muradabad and Shahabad District Rampur.

The Company is setting up two independent sugar projects of 5000 TCD and Power co-generation of 20 MW each totaling 10,000 TCD and power co-generation of 40 MW. After meeting the captive power requirement, the surplus power will be exported to the State Electricity Grid. The total value of the power to be exported during the full year of operation is estimated to be Rs 529.50 million. In addition, the Company will be saving approx. Rs 152.50 million per annum in power cost due to its captive consumption.

Source : Equity Bulls

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