The first unit of the 1980MW Talwandi Sabo project will become operational from Monday helping the state to meet its increasing power demand.
"The first unit of Talwandi Sabo Power Project will be commissioned on November 25 and it will be synchronised with the power grid after running the coal fired power plant nearly for 72 hours," an official of Punjab State Power Corporation Limited said here today.
The Vedanta Group has developed the thermal power project agreement for which was signed between SPV Talwandi Sabo Power Limited (TSPL) and erstwhile Punjab State Electricity Board (PSEB) on September 1, 2008.
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The project is dubbed as the largest greenfield project in Punjab. The power generated from it will be supplied 100 per cent to Punjab government for 25 years.
Involving capital outlay of Rs 10,000 crore, the plant can supply power to 20 lakh rural households, he said.
"The commissioning of plant will give a boost to the industrial sector in the state as well which is currently undergoing severe power crisis due to acute shortage of power," he added.
Against the annual requirement of 10 million tonne of coal, the TSPL has been able to arrange only 7 million tonne of coal for this project.
The fuel supply agreement has recently been signed for quantity of 7.72 million tonne per year which will be made available to the plant from Vasundhra Coal Field Mines, Sambalpur in Odisha, official said.
"This power plant project will be the first of its kind hi-tech and non-polluting plant in the state of Punjab," he said.
PSPCL official said the project would add to the installed power generation capacity of the state. Currently, Punjab has electric power generation capacity of 5036 MW.