Tata Power seeks MoEF nod to convert 1 Trombay unit into coal

The company has already sent proposal to MoEF seeking approval for the conversion.

Hit by a double whammy of gas shortage and prevailing high oil prices,private utility Tata Power has decided to convert its oil and gas combined unit 6 at Trombay plant in the metropolis to a coal-fired facility and has sought the green nod.

8220;Price of oil is increasing and availability of gas is becoming a major issue for power generators. Therefore,we have decided to convert the oil-gas fired plant to coal based,8221; said TPC executive director for operations S Padmanabhan.

The company has already sent a proposal to the Ministry of Environment and Forest seeking approval for the conversion.

8220;This conversion will require certain approvals from the ministry. We have already submitted our proposal and two rounds of discussions have been completed. We expect to get the clearances in the next three-four months,8221; he said.

Out of five units in its 1580-mw Trombay plant,unit 4 150 mw and unit 6 500 mw are oil-and-gas based,while unit 5 500 mw is coal-oil-gas-fired,unit 7 180 mw based on gas and unit 8 250 mw is coal-fired.

8220;Our unit 4 has been currently put on stand-by due to lack of availability of fuel,8221; he said.

The oil price is hovering at USD 95 a barrel while the gas price is around USD 17 per million British thermal unit mmBtu.

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8220;For the conversion,we will have to make certain modifications in the boiler. We will also need coal bunkers,coal mills,a yard and a system to handle the fuel. We will need around 23 acres for setting up the facilities,8221; another official who did not wished to be named,said.

He said the company is likely to incur a capital expenditure of around Rs 1,200 crore in the process.

On capital cost,Padmanabhan said that will be known only after all the engineering plans are in place.

Meanwhile,Tata Power has also decided to put on hold its Kalinganagar,Orissa 3215;67.5 mw gas-based and 3215;150 mw coal-and-gas-based plant,which is being executed through Industrial Energy 8212; a JV of the company with Tata Steel.

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Tata Steel has obtained environment clearance and water allocation for the gas-based plant along with their steel plant,while the process has been initiated for securing coal linkage for the coal-based plant.

8220;After the power ministry issued a directive to all states and other Central and state utilities asking them not to propose any new gas-based power projects at least till the end of FY15,we have decided not to take up any gas-based projects,8221; he added.