Sterlite Energy, a group company of Vedanta Plc, has signed a Rs 1400 crore operation and maintenance contract with Evonik Energy Services India (EESI) for their 4x600 Mw power plant at Jharsuguda.
The deal with EESI, a wholly owned subsidiary of Evonic Energy Services Gmbh of Germany, is for a period of 82 months. This puts the annual value of the contract at about Rs 200 crore.
The Sterlite sources claimed it to be the largest O&M contract signed for any bituminous coal based thermal power plants in the country and one of the largest O&M contract in the world for any power plant.
Sterlite Energy is currently setting up a 2400 Mw power project with Independent Power Producer (IPP) status at Jharsuguda in Orissa at an investment of Rs 8200 crore. The four units of the plant are in the final stages of commissioning with the first unit expected to go on stream next month.
This would be followed by commissioning of other units within a year by SEPCO-III, the Chinese EPC contractor, which has built the plant in a record time.
As per the agreement, Evonik would be responsible for smooth and reliable operations and maintenance of the units. Meanwhile, the operational staff from Evonik have been mobilized to assist the EPC contractor and set up systems for efficient operations.
Evonik would also bring in its proprietary plant management system and latest fault prediction systems which will ensure that the downtime for maintenance is reduced to a minimum. Health, Safety and Environmental systems would also be given high priority.
M Siddiqi, director of the company, said, “Vedanta group is emerging as one of the leading player in the power sector. The pact with Evonik will result in an excellent relationship between the companies and add lots of value in the power business in the country”.
According to J T Verghese, managing director, Evonik Energy Services (India), the contract is a path breaking initiative by Sterlite Energy to bring in professional O&M services for setting up of world class technical standards & systems for achieving high availability and reliability.
