Orissa set to augment power generation capacity

In a bid to maintain its power surplus status in the face of rising demand for energy, Orissa is working on a slew of measures to augment generation capacities in the hydro, thermal and captive power sectors.

Under a comprehensive plan drawn up by the energy department, the state aims to add 4913 Mw generation capacity during the 11th Five Year Plan (2007-12).

At present, the state is surplus by 200 Mw with the average demand and availability pegged at 2002 Mw and 2200 Mw respectively.

Similarly, the peak hour demand is estimated at 2574 Mw with the availability being 2700 Mw. Another factor going in favour of the state is that a major chunk of the peak hour demand is met by the Orissa Hydro Power Corporation (OHPC), which produces cheap hydel power. According to official projections, the peak demand in the state is likely to go up to 3000 Mw by 2009.

The reason is the possible increase in demand from the upcoming industries and the domestic consumers.

As a part of the plan to meet the rising energy requirement and maintain the power surplus status, the state intends to step up its installed capacity to 8735 Mw by the end of 11th plan from only 3822 Mw at present. For this the government is pinning its hope on some projects. The most significant of them is the expansion of IB Thermal Power Station (unit 3 &4) of the Orissa Power Generation Corporation (OPGC) which is expected to be commissioned by 2010-11.

The state will get 600 Mw from it. The government has set up a task force to look into various issues coming on the way of implementation of this expansion project and expedite the matter.

A major part of the capacity addition is proposed to come from the 13 Independent Power Producers (IPPs) with whom the state government signed memorandum of understanding (MoU) last year.

These IPPs are expected to contribute 3,748 Mw to the state grid.

The partial coal linkage to some power companies recently and expected allotment of coal linkage to more companies in coming days, has made the government feel optimistic on their early implementation.

"We will not only be able to meet the rising demand for power but also will have surplus in the state," L N Gupta, Commissioner-secretary state energy department told Business Standard. Official optimism is based upon the progress of various power projects at the ground level.

The 2,400 Mw thermal power plant being set up by Sterlite group at Jharsuguda has made substantial progress, point out the sources.

The company has already spent about Rs.650 crore on the project and the first phase is likely to be commissioned by February 2009. It is expected to attain full generation capacity by 2010-11with operation of four units of 600 Mw each, sources added. Other projects which have made considerable progress with regard to land acquisition, water supply and other required infrastructure include Monnet Ispat , KVK Nilachal, Nabbharat Power, Lanco group, Jindal Photo and Mahoot Power.

Similarly, different captive power projects have also made significant progress.

While Bharati Power's 40 Mw power plant has already been commissioned, Jindal Stainless's 2x125 Mw power plant and Jindal Steel and Power's 900 Mw power plant have made considerable progress.

The progress on captive power plants of Bhushan Steel and Vedanta Alumina are also satisfactory, Gupta said.

Orissa is expecting 170-200 Mw of power from these sources.