Coal-rich Vidarbha can make Maharashtra power surplus

By IANS
Thursday May 17, 10:38 AM

Nagpur, May 17 (IANS) The Vidarbha region of Maharashtra is all set to transform the power-starved state into a power-surplus one again in the next five years, thanks to a host of upcoming and proposed projects.

Already accounting for over 60 percent of the power generated in the state, the coal-rich central Indian region of Vidarbha will soon boast of a string of new plants with an installed capacity to generate 13,500 megawatt of electricity, officials said.

The highlight of this ambitious power generation programme is a staggering 8,455 MW unit committed by nine private sector companies, including those of the Adani Group, Ispat's Central India Power Co. and the Hyderabad based KSK Energy Ventures.

Of the remaining part, as much as 3,400 MW will come from four state government-owned thermal power stations in Vidarbha (in Paras, Khaparkheda, Koradi and Chandrapur) and 1,000 each from the proposed units of state-run National Thermal Power Corp's proposed plant in Mouda near Nagpur and the special economic zone in Chandrapur.

The Gujarat-based Adani Group of Industries has recently bought 200 hectares of land in the Tiroda industrial area in eastern Vidarbha's Gondia district for their proposed 2,000 MW thermal power project estimated to cost Rs.80 billion ($1.9 billion).

'The plant erection work is scheduled to start coming September and the first unit should be in place in less than four years', the group general manager H.M. Choudhury told reporters during a recent visit here. The group will soon buy 300 hectares more for the massive project, he added.

The biggest coal importer in the country that supplies coal to several thermal power plants including those at Koradi and Khaparkheda in Vidarbha, the Adani Group foresees no problem as regards the availability of coal for their Tiroda project.

'We are going to get coal for 1,000 MW power unit from Korba in Chhattisgarh with the help of Gujarat Mineral Corp and will also try to get the mineral from the Western Coalfields Ltd. (WCL) mines in Chandrapur district', Choudhury said.

While the equally big (2,000 MW) thermal power project of the Ispat Group's (erstwhile Nippon Denro) Central India Power Co. is coming up in Bhadravati in Chandrapur district, the KSK Energy Ventures has set up its financial arm Wardha Power Co. to construct its 540 MW plant at Warora in Chandrapur district.

The KSK Ventures, which has committed half of the power it will produce to its equity partner Viraj Profiles and the rest to small-scale industrial units in the region, has decided to buy its power plant equipment from China instead of Bharat Heavy Electrical Ltd (BHEL), which is booked for the coming two years.

The other companies that have taken concrete steps to set up their power plants in Vidarbha are Jawaharlal Darda Yavatmal Energy (1,215 MW), Nagpur Power and Infrastructure Ltd (1,000 MW), Vibrant Energy and EMCO (500 MW each), Reliance Energy (200 MW) and Abhijit Infrastructure Ltd. (100 MW)

While all the proposed projects including those in the state sector lie in the realm of future, and would, therefore, have been taken with a big pinch of salt by an incredulous people, a chastened state government's fervent efforts to ease the power crisis have lent credence to their announcement.

A modicum of success that the state's power establishment has recently achieved in providing some relief to the harried power consumers in the shape of reduced load shedding - there is little or no power cut as of now in cities like Nagpur, Aurangabad and Amravati besides Pune - has whetted the popular optimism.

Even while managing to draw power in bits and snatches from all possible external sources including Gujarat, Haryana and the central pool and stepping up generation in its own Dabhol and Parli power plants, the state government has ensured generation of 2,100 MW in Dabhol by the year end, two-third of which will be available by June end itself.

Determined to do all it would take to wipe off the state's power shortage in the shortest possible time, Chief Minister Vilasrao Deshmukh last week obtained New Delhi's nod for additional supplies of coal and gas, besides environmental clearances for the state's upcoming and existing power projects ensuring extra 2,600 MW electricity by next April.

'The state will have up to 6,500 MW more in the next two years,' proclaimed a beaming Deshmukh at the foundation laying function of the KSK Energy Ventures at Warora in Chandrapur district last Friday.

Reaching the site of the proposed 540 MW project (about 100 km from Nagpur) straight from Delhi along with Union Energy Minister Sushilkumar Shinde after meeting Prime Minister Manmohan Singh, Deshmukh unfolded a virtual calendar of power generation in the state beginning next month.

For the chief minister of the state that suffered a humiliating downslide from its 'unassailable' No.1 position in the country owing to its failure to produce a single megawatt as extra power in the last eight years, that was a moment of glory.

Shinde added to the cheer by announcing that the state would get an additional 800 MW from the upcoming Mundra mega power project in Gujarat and that the Centre has cleared its proposed 1,000-MW NTPC plant in Mouda.

When all this happens, hopefully in five years from now, Vidarbha, the designated powerhouse of Maharashtra, will become a major region for electricity generation.

JSW Energy ties up with Chinese firms

Printed from JSW Energy ties up with Chinese firms 20 Oct, 2007, 0047 hrs IST,Nevin John, PTI MUMBAI: JSW Energy, a Sajjan Jindal group company, has tied up with Chinese electrical equipment makers Shanghai Electric and Dongfang Electric Corporation for importing equipment for JSW’s upcoming power projects. The company has allocated Rs 3,500 crore for sourcing the equipment for the 4,000-MW power projects. “The construction for the three projects has begun and the shipment of equipment will start in a couple of months,” said JSW Energy vice-chairman NK Jain. The company is investing Rs 11,000 crore for setting up the three projects, that includes a 600 MW coal-fired project at Vijaynagar in Andhra Pradesh, a 1,200 MW coal-fired project at Ratnagiri in Maharashtra and a lignite-based 1,000 MW project at Barmer in Rajasthan. The Chinese major, Dongfang, already has a JV with Tata Power, the largest private power company in India, for setting up ultra mega power project (UMPP) in Mundra. For forthcoming UMPP bids also, Dongfang is expected to participate with the Tatas, while Shanghai Electric is supplying equipment for the engineering, procurement and construction projects of Reliance Energy. Equipment such as boilers and turbines account for 35% of the total project cost, say industry analysts. “While spending Rs 4 crore for 1 MW coal-fired project, about Rs 1.5 crore is needed for equipment. The rest of the expenses are mainly for land, foundation, civil works, small machinery, margin on working capital, pre-operation and contingency,” said Kamlesh Kotak of Asian Securities. JSW Energy is already operating a 260 MW power plant in Vijaynagar. It sells 60 MW to group company JSW Steel, and 200 MW to other utilities. JSW Steel owns a 230 MW plant separately for its captive use, but it’s operation and maintenance are done by JSW Energy. Apart from the coal and lignite-fired plants, the company is also setting up a 260 MW hydel project in Himachal Pradesh. “The company has achieved financial closure for all its power projects,” said Mr Jain. A consortium comprising 12 banks and financial institutions has participated in providing a loan of Rs 3,750 crore for the Barmer project, which has achieved closure now. The total cost of the project is estimated at Rs 5,000 crore,” he added.

People reject EIA for steel project in Chhattisgarh

K RADHIKA, SHYAMAL
(Down to earth)

in an unusual incident, Monnet Ispat and Energy Ltd’s public hearing in Raigarh was called off because “the company was unable to adequately answer issues raised by the public”. The company’s plans to expand its iron and steel plant in Raigarh, Chhattisgarh, has further run into trouble with allegations of irregularities in environmental impact assessment (eia) report. New Delhi-based Monnet runs a 0.3 million tonnes (mt) per annum integrated iron and steel plant in Raigarh.

It wants to increase the plant’s capacity to 1.7 mt per annum. ........
............

Read the Full story at
http://www.downtoearth.org.in/full6.asp?foldername=20070915&filename=news&sec_id=4&sid=13

POWER PROJECTS IN MAHARASHTRA - PIB release

Wednesday, September 05, 2007; 17:58 IST
RAJYA SABHA

According to Maharashtra State Electricity Distribution Company Limited (MSEDCL), they are purchasing power from other States through power traders at higher rate.

NTPC proposes to set up the Mauda Thermal Power Project (2x500 MW) in Mauda Tehshil of Nagpur District, Maharashtra. Action has been initiated for obtaining necessary clearances including from the State Pollution Control Board (SPCB) and acquisition of land. Public hearing for NOC from SPCB (Maharashtra) has been held on 18th June, 2007. Action has also been initiated for obtaining Environmental clearance from Ministry of Environment & Forests. The project is expected to be commissioned during the 11th Plan period.

Maharashtra State Power Generation Company Ltd. (MSGPCL) proposes to add 3,675 MW by way of new capacity addition and replacement of existing units which have completed more than 30 years of operation. MSGPCL is in the process of tying up of basic inputs and obtaining statutory clearances required for these projects.

According to the Maharashtra State Electricity Distribution Company Ltd., power traders have sourced power for Maharashtra mainly from West Bengal, Orissa, Sikkim, Kerala, at higher rate.

This information was given by the Union Power Minister Shri Sushilkumar Shinde in a written reply to a question in the Rajya Sabha.

PRA:NC
(http://pib.nic.in/release/release.asp?relid=30887)

Standalone SEZs for power ?

Standalone SEZs for power on the cards

Deepak Joshi, Hindustan Times
New Delhi, September 05, 2007

The government is taking a fresh look at the issue of standalone special economic zones (SEZs) for power generation projects. The move follows concerns regarding the utilisation of SEZ-generated power in the non-processing areas and domestic tariff area (DTA). A power ministry official admitted that though the Electricity Act provides for power generation for captive purposes on individual or collective basis, the concept of standalone power SEZs needs examination.

A key issue calling for policy intervention is the creation of a level-playing field for National Thermal Power Corporation and other power plants servicing the domestic tariff areas. “A formula needs to be worked out for payment of duty on such supplies outside the SEZ processing area,” the official said.

The issue gains significance, as it is the responsibility of the developer to provide power as an infrastructure facility. The Maharashtra Industrial Development Corporation decided that instead of setting up individual power generation facility in each SEZ, they would set up two power sector SEZs to supply power to all such zones. Other two sector-specific SEZs in Gujarat were allowed, as the location proposed was not contiguous to the main SEZ.

SEZ developers get exemption on building material, capital goods and operation and maintenance of goods and services. In such a scenario, it is pointed out that the size of the power plant should be linked to the SEZ requirements.

To overcome these issues, the power ministry has proposed three possible alternatives. The units in the SEZ could create a captive power plant on contributory basis and use the power generated. This would not require any distribution licence or fixation of tariff. Alternatively, a cooperative society of users could develop the power plant. Or the SEZ developer could take the distribution licence and get the tariff fixed from the regulator.
http://www.hindustantimes.com/StoryPage/Print.aspx?Id=5bbfe736-fce5-4744-a7fb-7f4646b1151d
© Copyright 2007 Hindustan Times

Mahagenco requests coal supply - PIB press release

PIB press release
Wednesday, August 29, 2007; Ministry of Coal

SUPPLY OF COAL TO THERMAL POWER PLANTS IN MAHARASHTRA
18:10 IST

Lok Sabha

Maharashtra State Power Generation Company Limited (Mahagenco) have requested supply of coal on tapering basis for their future expansion projects till their coal blocks come into production. These expansion projects include Bhusawal-3, Parli-3, Paras-3, Koradi-1 (Replacement), Chandrapur-1 and Koradi-2. The request of Mahagenco was considered by the Standing Linkage Committee (Long-term) on Power in its meeting held on 2.8.2007 which approved grant of Letter of Assurance (LOA) to Mahagenco on “tapering basis” to the tune of maximum quantity of 2 million tonnes per annum, keeping in view actual requirement/shortfall from captive mines of Mahagenco. However, the commercial arrangements in this regard would be worked out between the consumer and CIL/specifically linked company for supply of coal on short term tapering basis. In addition, Mahagenco has also been granted LOA to the tune of about 10 million tones during 2006 for their power projects.

The request from the Government of Maharashtra was for supply of coal from Western Coalfields Limited (WCL) area. The Committee has approved LOA to Mahagenco on “tapering basis” on “cost plus basis” from Coal India Limited/specifically linked company, to the tune of maximum quantity of 2 million tones per annum keeping in view actual requirement/shortfall from the captive mines of Mahagenco.

The above information was given by Dr. Dasari Narayana Rao, Minister of State for Coal in a written reply in the Lok Sabha today.

RCJ/ls

Six bidders in fray for Dhopave project

Tuesday, August 28, 2007 2:13:00 AM
Permission to reprint or copy this article or photo must be obtained from www.3dsyndication.com.

Six bidders in fray for Dhopave project

Promit Mukherjee

Final list expected by this month-end

MUMBAI: Six of the eleven bidders, including Reliance Energy and Tata Power, who had evinced interest in the imported coal-based Dhopave coastal power plant, are now left in the fray.

Though a formal approval in this regard is yet to come from Maharashtra State Power Generation Company Ltd (MahaGenco), sources said apart from Reliance Energy and Tata, the other companies in the shortlist were GMR Energy, Torrent Power, Lanco Infratech and Jindal Power. A final list, however, is expected by the end of August.

MahaGenco has planned two mega power projects in the state under its Phase II of capacity augmentation plan, through which it is aiming to achieve an additional generation capacity of close to 6,000 MW by 2012. The two mega projects are the 1,040 MW of gas-based Uran expansion project and the 1,600 MW Dhopave Coastal Power project. The Uran project will be kicked off only once the gas issue is resolved.

For the Dhopave project, the state generation utility had invited bids from national and international power players in May, 2007. It had also formed a special purpose vehicle (SPV), Dhopave Coastal Power Company Ltd, for the implementation of the project.

The 1,600 MW imported Dhopave imported coal-based thermal power station would be located in Ratnagiri district in Konkan region. The project is strategically located, with a proximity to the petrochemical and the fertilizer industry. Since it is located near the coast, importing coal will also be easier and cheaper.

Due to these conducive factors, several power players have spotted its potential. It is barely 2 kms away from the Ratnagiri Gas and Power Private Ltd’s Dhabol Power Plant. The project will be having two units of 800 MW each and will be fuelled by highly efficient imported coal. “It will be upon the discretion of the selected company to decide whether to use super critical or sub critical technology,” the source said. Depending on the technology used, the cost for setting up of the project would be between Rs 6,500 cr to Rs 8,000 cr.

It would be commissioned before the end of 2012. It will be spread over an area of 500 hectares (ha) out of which the power station will occupy close to 230 ha. The final player would be chosen on the basis of tariff-based competitive bidding. It might take another 10 months to announce the winner. The selected company would be developing the project on build, own and operate basis from whom MahaGenco would be purchasing power for the procurer. The procurer in this case is the Maharashtra State Electricity Distribution Company Ltd (MahaVitaran).

The eleven companies who had bid for the project were Tata Power Company, Reliance Energy, Torrent Power, Jindal Power, Essar Power, Lanco Infratech, AES, China Light and Power, Adani Group, GMR and GSPC.

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