2,640 Mw thermal power project coming up in Srikakulam.
East Coast Energy Private Limited (ECEPL), which is setting up a 2,640-Mw thermal power project comprising four units of 660 Mw each in Srikakulam district, expects to commission the first unit by September 2013.
“Following this, we will commission the subsequent units every six months,” company chairman T Sankaralingam told Business Standard.
ECEPL achieved financial closure for the Rs 11,000-crore project four months ago. The project is funded through an equity of 25 per cent and debt of 75 per cent. The debt was raised from a consortium of 14 banks and financial institutions led by Power Finance Corporation (PFC).
Recently, PFC had sanctioned a foreign currency loan facility of $110 million to the company in addition to the rupee term loan of Rs 1,640 crore sanctioned earlier.
According to ECEPL managing director TV Krishna, the company has signed a power purchase agreement (PPA) with PTC India Limited for the entire 1,320 Mw to be produced in Phase-I. It has also received a letter of intent from Power Corporation of Karnataka Limited for supply of 200 Mw at a price of Rs 3.88 a unit.
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For power evacuation, he said, long-term open access for transmission had been signed with Power Grid Corporation of India Limited. ECEPL also recently signed bulk power transmission agreement for 1,320 Mw.
The power project, coming up over an area of 1,800 acres, has coal linkages from Mahanadi Coal Fields up to 70 per cent of its requirement. It would import the remaining 30 per cent coal from Indonesia.
The state government has accorded permission to the company for construction of a dedicated captive jetty at Meghavaram, 10 km south of Bhavanapadu port, for import of coal.
The company has entered into boiler, turbine and generator (BTG) package with Dongfang Electric Corporation of China. Manufacturing of the equipment was stated to have commenced and delivery was expected to be completed in two years. It is adopting super critical technology that reduces coal consumption.