OPG Power Gujarat Private Limited, a subsidiary of London-based power player, OPG Power Ventures PLC has received the in-principle approval to set up a sector-specific special economic zone (SEZ) for power at Bhadreshwar, Mundra in Kutch district in Gujarat. The SEZ board of approval (BoA) has granted the in-principle approval to the company at its meeting held earlier this month.
"We have been granted the in-principle approval for setting up the SEZ at Mundra. There will be a standalone coal-based power plant spread over an area of about 100 hectares at the SEZ. We intend to supply power from this plant to export oriented units and other units located in nearby SEZs," said Prashant Goyal, director, OPG Power Gujarat Pvt Ltd.
The company intends to set up a 300 megawatt (Mw), i.e. two units of 150 Mw, coal-based power plant in the SEZ in Gujarat. The company has acquired only part of the required land for the SEZ while it is in the process to acquire additional land.
"..as per report of DC (development commissioner) KASEZ (Kandla SEZ), the entire area of 104.72.24 hectares is, presently, not in possession of the developer. Accordingly, the board decided to grant in-principle approval to the proposal of OPG Power Gujarat Private Limited, for setting up of a sector specific SEZ for power at Bhadreshwar, Mundra, Kutch, Gujarat," the SEZ BoA noted in its meeting held on July 6, 2012.
"It brings attractive tariff as well as other tax incentives by selling power from the SEZ," said Goyal.
Goyal informed that the company has received all the required clearances for the power project as well as for the SEZ. The company is looking to commission the Mundra power project by 2014.
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"All the necessary clearances are in place and ground level work has already started. We are confident to commission the project by January 2014. This will take our total installed capacity in India to about 750 Mw by 2014 with a mix of coal, gas and renewable sources," added Goyal.
OPG has existing installed capacity of 113 Mw, of which 80 Mw is coal-based unit at Chennai, while rest includes 26-Mw gas-fired and a 7-Mw waste heat recovery plant. "We plan to have 240 Mw of installed power capacities by January 2013," said Goyal.
The company will use a mix of domestic and imported coal. "We will require a total of 1.5 million tonnes of coal after achieving 240 Mw of capacities. We will import coal directly from overseas miners as well as from the domestic suppliers like Coal India," he said.
OPG intends to invest around Rs 3,000 crore over a period of next three years to increase capacities at Tamil Nadu and Gujarat projects, of which Gujarat project will have investment of about Rs 1600 crore.
It may be noted that recently, National Green Tribunal (NGT) had allowed the AIM-listed power player to go ahead with its 300 Mw power project at Kutch subject to its compliance to the terms and conditions laid down in the Environmental Clearance granted by the Gujarat State Level Impact Assessment Authority.