Singaji thermal power project to enter second phase

Madhya Pradesh Power Generating Company Limited (MPPGCL) has decided to begin the second phase of Singaji thermal power project in Khandwa district. The state government today announced the revised cost of the project, which has a total capacity of 1,320 Mw (660 Mw in each phase), and the formation of a special purpose vehicle.

The first phase of similar capacity is expected to be completed by MPPGCL by 2012. The total land requirement of the project is 1,232 hectare of which 1,163 hectare have already been acquired.

“Total cost of the project will be Rs 6,500 crore of which Rs 5,200 crore will be debt portion obtained from various banks and financial institutions. The state government will contribute the rest 20 per cent (Rs 1,300 crore) as share capital,” a government spokesperson said here soon after the cabinet meeting.

The Bharatiya Janata Party government had invited its top-brass LK Adwani to lay the foundation stone of this project earlier named as Malwa power project. Singaji Thermal Power project named after a seer who had stationed himself years ago in a village, which has now been submerged in the Indira Sagar Power project reservoir. The saint, who is believed to have hands-on knowledge of veterinary, took Samadhi (mausoleum of a saint or a spiritual leader) near the project site.

The project, as it is now referred to, will come up in Dongalia village of the Khandwa district.

The state government has also learnt to have tied-up with Power Finance Corporation for a loan of Rs 3,242 crore against the project cost of Rs 4,053 crore (as calculated earlier for the first phase). However in the present market conditions the project cost has been revised to Rs 6,500 crore. The project has been conceptualised to be completed in two stages; the first unit of 660 Mw is scheduled to be commissioned by March 2012 and second unit by July 2012. The project was originally conceptualised as a joint venture of 2,400 Mw with the Gujarat government, which was later pulled out. MPPGCL has a total of 2,932.5 Mw of thernal power generating capacity.