Reliance to jointly develop Hirma power project

MUMBAI, APR 19: Reliance Power Ltd today signed an agreement with Hong Kong-based Consolidated Electric Power Asia Ltd (CEPA), to jointly ...

MUMBAI, APR 19: Reliance Power Ltd today signed an agreement with Hong Kong-based Consolidated Electric Power Asia Ltd (CEPA), to jointly develop the 3,960 MW coal-based thermal power project at Hirma in Orissa.

The pit-head, coal fired 6X660 MW thermal power plant would be commissioned within 51 months of financial closure with the first of the six units becoming operational within 36 months, a company statement said here.

The remaining five units would achieve commercial operation in intervals of three months while the entire plant would start commercial operation within 51 months of financial closure.

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CEPA signed a memorandum of understanding (MoU) in September 1994 with the Power Grid Corporation of India Ltd (PGCIL) to develop the project which would source more than 19 million tons coal requirements per annum from IB Valley.

Electricity generated from the station would be sold to the Power Trading Corporation, which in turn would sell it to Madhya Pradesh, Gujarat, Rajasthan, Punjab and Haryana.

The Ministry of Power and Power Trading Corporation are reviewing the Power Purchase Agreement (PPA) and payment security structure while tariff approval from Central Electricity Regulatory Commission was awaited, the release said.

Coal for the power project would be supplied by Mahanadi Coalfields Ltd (MCL), a wholly-owned subsidiary of Coal India Ltd, while the water would be drawn from the Kirakud Reservoir, 35 km from the project site.

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MCL, has allocated two dedicated coal blocks – Kulda and Garjanbhal, about 40 kms from the project site, with capacity in excess of 19 million tonnes per annum, for the project the release said.

Two dedicated transmission facilities would be developed and operated by Power Grid Corporation (PGC) for supply of power to Gujarat and Madhya Pradesh in the west and Rajasthan, Punjab and Haryana in the north.

Rajasthan would be the major beneficiary of the project drawing 1200 MW of the power generated. Punjab would get 960 MW, Gujarat 700 MW, Madhya Pradesh 600 MW and Haryana would get 500 MW of electricity generated at the station.

The coming together of CEPA, the largest independent power producer in Asia with a total of 2,698 MW of owned-generated-capacity, and Reliance was likely to give a major fillip to independent power projects (IPPs) in the country.

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Reliance is currently developing five projects in different parts of the country with an aggregate capacity of around 1900 MW, the release added.

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