GMR commissions 3rd unit of Kamalanga power project

Group's total power generation capacity reaches 2,485 Mw

The third unit of GMR Group’s coal-based power plant having 350 Mw capacity at Kamalanga in Dhenkanal district was declared commercially operational today, taking the total output of the plant to 1050 Mw.

The project’s first unit of 350 Mw was commissioned in April, 2013, and the second unit of similar capacity was added in November 2013. With the new capacity addition, total power generation of  GMR Group has touched 2,485.6 Mw, the company said.

Bangalore-headquartered company, with interests in airports, energy, highways and urban infrastructure is establishing the 1,400 Mw project in Odisha under the banner of GMR Kamalanga Energy Limited (GKEL) in two phases of 3x350 Mw and 1x350 Mw, respectively. The firm would supply power to Odisha, Bihar, Haryana and other parts of the country. “With commissioning of all the three units of 350 Mw each, we have completed the first phase of the project. We will begin work on the second and final phase of the project very soon,” said R.V. Sheshan, Managing Director of GKEL,

The Odisha project is being implemented on multiple packages concept and is the third project with Independent Power Producer (IPP) status to have started generation in the state after Sterlite Energy and Arati Power.

The company had signed an agreement with the Odisha government in June, 2006, to establish the power project. As per the agreement, the company has to sell at least 12 per of total power to the state grid at variable cost, which is linked to coal prices.

Besides, it had signed agreements with Haryana state power distribution companies for supply of 350 Mw and Bihar State Electricity Board for supply of 260 Mw.

The company was allocated Rampia coal block jointly with Lanco Group Ltd, Sterlite Energy Ltd, ArcelorMittal India Ltd, Reliance Infrastructure Ltd and Navabharat Power Ltd.

However, the Union coal ministry last month de-allocated the block for slow progress in achieving key milestones necessary for coal mining. Meanwhile, to run the power plant at Dhenkanal, GMR has signed fuel supply agreement with Coal India subsidiary Mahanadi Coalfields Ltd (MCL).

Though the company had earlier announced to establish three units of 350 Mw each at Kamalanga, it later decided to add one more unit of 350 Mw in its second phase expansion.