Pioneer Distilleries power project to be ready by Sep

Coimbatore: Pioneer Distilleries has said that work on 5-MW biogas-based power project is expected to be completed by September and start commercial production from October.

The company entered into a power purchase agreement with Tata Power Trading Company Ltd, Mumbai for the entire power generated by the plant. The PPA is valid for 10 years from commercial operation date, and the applicable annual average base rate for power purchase shall be Rs 4 per kWh for the first year.

The company will be entitled for carbon credits against this power plant, which will add significantly to the bottomline.