Lucknow, May 7 -- The Uttar Pradesh Cabinet on Tuesday approved the procurement of 1,500 MW of electricity from a 1,600 MW thermal power project under a 25-year agreement using the DBFOO (Design, Build, Finance, Own, Operate) model. The project is expected to be operational by the financial year 2030-31.
Awarded to the lowest bidder at a competitive tariff of '5.38 per unit, the power purchase deal is set to deliver significant savings - around '2,958 crore -for the state-owned UP Power Corporation Limited (UPPCL). Once operational, the power will be supplied at '6.10 per unit, which is considerably lower than the current rates of '6.60 to '9 per unit charged by existing thermal power plants such as Jawaharpur, Obra, Ghatampur and Panki.
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