Indian Power Sector

The maiden 500 mw unit of Durgapur Steel Thermal Plant being established by Damodar Valley Corporation is set to start commercial generation by end of January. The unit was put on stream in July 2011.

In a bid to achieve completion of 2 x 500 mw capacity addition in the 11th Plan Period, another unit of the same size is expected to be commissioned by March 2012.

The company is presently operating a total capacity of about 3,800 mw of which about 3710 mw is thermal while the rest at 144 mw is hydel. DVC has decided to add 4000 mw of fresh power generation capacity in the 12th Plan Period which starts from April 2012. The units will be put up depending on coal availability for the units.

The company is in talks with Life Insurance Corporation for raising funds through government guaranteed bonds, in order to finance its expansion plans. The power generator plans to raise a total of Rs 4400 crore from LIC and a clutch of banks for financing its capital expenditure through such bonds.

The company has been financing its projects on a 70:30 debt equity ratio.

In a big relief, there is some good news from banks for the power sector, especially to companies which seek a loan recast.

A number of state electricity boards (SEBs) or distribution companies (discoms) which had taken short-term loans from banks for liquidity support have found themselves in no shape to repay as committed.

Currently, talks are on between the Uttar Haryana Bijli Vitaran Nigam and its lenders, and between its counterpart in Tamil Nadu and the latter’s banks.

“Restructuring proposals from Rajasthan and Punjab are expected to reach bankers in the January-March quarter,” said Subhalakshmi Panse, executive director, Vijaya Bank.

There are other state agencies which had taken short-term loans (which run for around a year) from banks to bridge their revenue gaps. With repayment due, discussions on restructuring these have begun or soon would. Good news, isn’t it?

The Union government has reviewed the progress of over 100 coal and lignite blocks allocated to companies. The firms which came under scrutiny includes Hindalco, Essar Power, Jaiprakash Associates, Adani and Power Finance Corporation for captive use.

A Coal Ministry was quoted as saying, “On the second day of the two-day meeting, the government reviewed the development of coal blocks in various states like 0rissa, West Bengal and Madhya Pradesh among others, where blocks have been allocated to Hindalco, Essar Power, Adani Jaiprakash Associates and Power Finance Corporation and others.”

The Coal Ministry also reviewed the progress of lignite blocks in the state of Rajasthan and Gujarat allocated to companies, including Binani Cement and DCM Shriram Consolidated.

Cracking down on those who were sitting idle on blocks allocated for captive use, the Coal Ministry had last year cancelled the allotment to DVC, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam, Bihar State Mineral Development Corporation and Jharkhand State Electricity Board.

National Thermal Power Corporation Limited (NTPC) is likely to start work on the first stage of 4,000 Mw ultra mega power project at Kudgi in Bijapur district shortly.

After the State government transfered of 1,923 acres land, the board of NTPC recently approved a proposal to take up the work for the first stage of 3×800 Mw project at an estimated investment of Rs 15,166 crore.

The second stage for 2×800 Mw would be taken up later after the state government transfers the entire land for the project, NTPC sources said.

After the MoEF approval comes, the board of NTPC will approach the ministry of power for final approval to commence the work on the project, said reports.

Meanwhile, NTPC has opened a project office at Bijapur, which is very close to the project site in Kudgi village. NTPC has deposited Rs 100 crore to acquire the land at Kudgi village.

The government of Andhra Pradesh is set to ink MoUs for about Rs 2 lakh crore worth of energy projects, both in public and private sector.

The pacts will be mostly in coal fired thermal power plants on the last day of the summit tomorrow. This is almost 40 per cent of the new investment proposals.

Dinesh Kumar, principal secretary, energy department, said these projects have been proposed with a combined installed capacity of 39,000 Mw, of which 26,000 Mw projects are proposed in the private sector

Among the public sector, NTPC Limited is coming up with new projects apart for expanding its existing ones with a combined capacity of 4,000 Mw in the state. Power utility APGenco is proposing to add 9,700 Mw in both expansion and greenfield thermal projects.

Bharat Heavy Electricals Ltd (BHEL) will later this month commission the first 250 MW lignite-powered circulating fluidised bed combustion (CFBC) boiler at Neyveli Lignite Corporation’s (NLC) complex in Tamil Nadu.

AV Krishnan, executive director, BHEL, Tiruchi, said the second 250 MW unit will become operational in April or May. The technology for the CFBC boilers – which works on non-coal fuel, including lignite, bagasse and straw, was developed at the Tiruchi complex.

BHEL manufactures CFBC boilers in collaboration with Lurgis Lentjes Energietechnik Gmbh (LLB). The German firm’s rich experience and numerous installations worldwide (including the largest CFBC unit in the world – a 250 MWe plant at Gardanne, France, in operation since April 1996), coupled with BHEL’s extensive R&D and expertise in dealing with low-grade fuels provides a winning combination.

The power equipment manufacturer had supplied the first utility-sized (125 MW) CFBC boiler in India to Gujarat Industries Power Corporation’s Surat Lignite Power Project, in 2000.

Union Minister of State for Power K.C. Venugopal has asked Damodar Valley Corporation (DVC) to complete all pending projects in Jharkhand and West Bengal by March 2013, to increase its present capacity of 3,200 MW.

Speaking to reporters in Danbad, he said, “I have discussed the progress of pending projects and asked DVC officials to complete them by the end of next fiscal in order to increase power generation.”

During the inspection, DVC officials apprised Mr Venugopal that the company had a combined 3,200 MW hydel/thermal power generation capacity, out of which 90 per cent is used for irrigation facilities and 10 per cent in electricity generation.

A central consultancy would be set up to work for the development of Maithon and Panchet dams in Jharkhand as tourist spots, said Venugopal.

This is the list of thermal power projects to be taken up for first level of  environment clearance ( Terms of Reference) on January 12, 2012.

This is the list of thermal power projects to be taken up for final environment clearance on January 12, 2012.

The government of Punjab is exploring the possibility of setting up of two new thermal units of 660 MW each at Ropar in view of availability of required infrastructure.

Last year in October, the Punjab government had announced in the setting up of two 660 MW units in state sector near Mukerian.

Quoting sources, reports said the possibility of setting up these units along with existing thermal units at Ropar is now being explored.

Ropar thermal plant has six units of 210 MW each.The available land, water, rail linkage, initial man power and other basic amenities needed to set up a new project are already available and can be suitably extended.

A team of engineers visited Ropar few days back to study the possibility of setting up the project having 2 units of 660 MW each and the assess the future land requirements.