UP signs deal with BHEL for 800x2 MW thermal power plants

Lucknow, Aug 10 (UNI) In yet another major breakthrough in power sector, Uttar Pradesh government has signed a deal with the Bharat Heavy Electricals Ltd (BHEL) for setting up 1,600 MW thermal power units at Obra.

The BHEL has given in principle approval for 50 per cent equity participation in the project and rest of the cost would be borne by the state government.

The new thermal plant called Obra C, will have two units of 800 MW each. The cost of the project is estimated to be Rs 6,400 crore or Rs four crore per MW. The project is scheduled to be completed in 36 months from the date of the award of the contract.

The UP thermal power generation corporation has already obtained coal linkage for the new plant, which will be supplied from the coal mines located in Jharkhand. The Energy Task Force headed by the Chief Secretary Prashant Kumar Mishra, has approved the project and it will soon be placed before the cabinet.

The Mayawati government has already cleared proposals for new units of 1,320 MW at existing thermal power plant at Tanda and two new coal-based units at Bara and Shankargarh in Kaushambi district, with installed capacity of 3,000 MW.

UP Power Corporation Ltd (UPPCL) Managing Director Avneesh Awasthi said here that earlier the proposal was to set up two units of 500 MW on turn-key basis by inviting global bidding. He said next thing in the agenda for the project is obtaining the approval of the project specification from the Central Electricity Authority and environmental clearance from the Centre.

Mr Awasthi said the BHEL suggested that the 2x800 MW would be technically feasible and more economical. The BHEL has already tied up with several global companies for the supply of plant and machinery for the new thermal project. The land for the Obra C project is being arranged in the existing plant premises. Several old buildings and staff quarters lying vacant are to be demolished to make way for the expansion project.

Originally, the Obra C project was concieved for 1,000 MW with two units of 500 MW each. On the suggestion of the BHEL and in view of its offer for 50 per cent equity participation, the government agreed for the increase in capacity to 1,600 MW. The original cost of the project was estimated to be Rs 5,000 crore of which state government was to bear 30 per cent or Rs 1,500 crore and rest was proposed to be mobalised from the financial institutions backed by the governments guarantee.

Originally, the BHEL was not shortlisted for the Obra C project as it was already saddled with the orders for the Harduaganj and Parichha placed by the UP power Thermal Power Generation Corporation. The Corporation has also decided to place the orders for the Boiler, turbine and generator for the Anpara D project to the BHEL. Moreover the official sources said the MNCs had quoted very competitive price for the Obra C project.

In Obra thermal plant located in Sonbhadra district, has the installed capacity of 1,442 MW, but more of the machines was obsolete and worn out as they were over 25 years old. With the result the Power Load Factor(PLF) of Obra A unit is 15 per cent and 44 per cent of Obra B. The project for the renovation and modernization of five units of 50 MW each and five units of 200 MW each is underway.

UNI