The Orissa Power Generation Corporation (OPGC), a joint venture company with the Orissa government and AES as partners, will invite international bid for setting up 1200 mw additional capacity in the existing Ib Valley Thermal Power Station run by the company in Jharsuguda district by December.
The company is in the process of working out the specifications of the tender and this is expected to be completed in about a month. The tender will be floated once the process is over, official sources said.
“The international bid for the project will be invited by December and the project is expected to be completed within 42 months”, Suresh Chandra Mohapatra, secretary, energy department, Orissa government and chairman, OPGC told Business Standard.
About the progress of the project, he said, the mining plan for sourcing of coal from the Manoharpur coal block allotted to the company has been approved by the authorities and the company is in the process of acquiring land for the project. Of the 2000 acres required for the project, 1000 acres are available with the company at present.
The hearing for the environmental clearance is over and the Orissa State Pollution Control Board (OSPCB) is expected to send its recommendation to the Union ministry of environment and forest soon.
While water permission for the project has been obtained, Jharsuguda collector has recommended the grant of mining lease (ML) in favour of the company to the state steel and mines department.
The total cost of the project including mines development was estimated at about Rs 6500 crore. OPGC, will have an equity of 20 percent (Rs 1300 crore) which will come from the dividend income of the company.
It has already accumulated about Rs 600 crore to Rs 700 crore in the form of dividend for last four years and it hopes to raise the remaining amount from dividends in the coming 3 to 4 years.
The company will mobilise the remaining 80 percent of the project cost from debt. OPGC is in discussion with the Power Finance Corporation (PFC), Rural Electrification Corporation (REC) and 2 to 3 commercial banks in this regard.
“OPGC’s credit rating is high and it ranks among the top 10 borrowers in the country in loan servicing, so there will not be any problem to mobilise the required funds. We will be able to set up the plant without budgetary support”, Mohapatra added.
The plant when commissioned will be able to produce power at Rs1.80 per unit which will be amongst the cheapest in the country. Out of the total generation, while 50 per cent will be sold to the state-owned Gridco, the company will export the remaining power to other states.
