Mahagenco to set up 1,320 mw thermal project near Dhule

News By Industry-News-The Economic Times

Mahagenco to set up 1,320 mw thermal project near Dhule
12 Jun 2009, 0130 hrs IST, Pradeep Pandey, ET Bureau

MUMBAI: In a move that could reduce power shortage in Maharashtra, the state power generation company Mahagenco has decided to set up a 1,320
mega watt greenfield thermal power project at Dondaiche near Dhule. Confirming this, Mahagenco managing director Subrat Ratho told ET that the power generation firm has submitted a proposal to this effect to the state government. He said that the construction work will start by March next year.

“We have started acquisition of land. We are in the process of finalising consultants for the project. The tenders will be called in September for the supply of boilers, turbines and other equipment,” he added. Mahagenco will
acquire 842 acres for the project.

According to another Mahagenco official, who did not wish to be named, the investment for the project, including development of infrastructure as well as coal mines at Chedipada in Orissa, is pegged at Rs 8,580 crore. Energy experts, however, are of the opinion that the number is on the higher side and it might be revised downward, if the government decides so. The plant will require about 6.88 metric million tonne of coal per annum at its full capacity.

With two units of 660 MW each, the project that will be based on super critical technology is expected to start commercial operations in 2014. The same Mahagenco official said the debt-equity ratio of the project is estimated to be 80:20. The required debt will be raised from the Power Finance Corporation and the Rural Electrification Corporation, while the state government will chip in towards its equity contribution.

Currently, it produces around 10,000 MW from a handful of coal, gas and hydro power plants, and plans to add another 2,000 MW next fiscal through its upcoming projects at Kapaskhera and Bhusawal in Maharashtra. Further, the proposed projects at Chandrapur and Dondaiche will scale up its capacity by another 3,000 MW to 15,000 MW in 2014.

Maharashtra is witnessing a shortfall of power of around 4,500 MW in the peak summer season. However, the scenario may improve after the proposed addition of capacity by Mahagenco and some other private players, including Ratnagiri Gas Power Project. Ratnagiri Gas Power Project has raised its generation capacity to 950 MW from earlier 600 MW. It will scale it up further to 1,900 MW by March 2010.