GSEG plans 2nd power plant for Rs 1,150 cr

Gujarat State Energy Generation plans to set up its next 350 Mw unit.

The Gujarat State Energy Generation Ltd (GSEG), a company promoted by GSPC, Kribhco, GAIL and other public sector entities, plans to set up its next 350 mega watt (Mw) power generation unit at a project cost of Rs 1,150 crore.

D J Pandian, Director of GSEG told Business Standard, that the company will come up with its second 350 Mw gas based power generation unit soon after the completion of its current project.

The company laid the foundation stone for its first 350 Mw combined cycle gas power plant. The project is expected to be ready within the next 27 months for an estimated project cost of Rs 1,050 crore and would take up the total installed capacity of the company from 156.1 Mw TO 506.1 Mw.

According to Pandian, the cost of project for its second 350 Mw gas based power generation unit would be approximately Rs 1,150 crore. The company¿s board had accepted the proposal for its second 350 Mw gas based power generation project couple of months back.

The second 350 Mw power project will come up at the same location of the present project at Mora village near Hazira, Surat.

For its present project, GSEG had acquired 28 hectares of land, apart from an additional 40,000 sq mt huge land adjacent to the existing plant.

Pandian also said that his company is confident of executing the second power generation project in the stipulated period. He, however, refused to elaborate on the nature of raising finance for the second project.

GSEG will need 2 million cubic metres per day (CMPD) supply of gas for its present project. While the cost of power generation would stand at Rs 2.6 crore per mega watt, the company has struck gas supply deal with GSPC for $2.4 per MBTU (million British thermal units) and would supply the power at a competitive rate of Rs 3 per unit. At present, GSEG procures all its gas (raw material for power generation) from GSPC's gas wells at Hazira.

For its present project, BHEL (Bharat Heavy Electrical Ltd) will supply the project on EPC (engineer, procure and construct) basis and would use GE technology in gas turbine of nine FA machine.

The unit of 350 Mw will comprise of one gas turbine, one HRSG (Heat Recovery Steam Generator) and one steam turbine. "The expected cost of project is around Rs 1,050 crore, which is to be financed from debt and equity," informed Pandian.