Ipps Make A Beeline For Andhra Coast

The 160 km stretch between Visakhapatnam and Kakinada is fast emerging as the most favoured location for independent power producers and joint ventures to set up short-gestation power plants.

While the major power plants are being located in Visakhapatnam and Kakinada, there are a number of power plants coming up in neighbouring towns.

Preliminary steps to set up three major power plants have commenced at Visakhapatnam. They are the 1,040 mw thermal plant being set up by the Hindujas in collaboration with the National Power Corporation of the UK, the 1,000 mw Simhadri combined cycle power project of the National Thermal Power Corporation and the 500 mw combined cycle power project by the Hindustan Petroleum Corporation and the state electricity board.

For the Hinduja project, the revised power purchase agreement has been cleared and the state government guarantee sent to the Centre. Sources in the state electricity board said the company had agreed to complete financial closure by October.

It expects to commission the first 520 mw unit by December 2001, followed by the second unit of identical capacity six months later.

Work on the Simhadri project has commenced and the NTPC has indicated that the first 500 mw unit will be operational by November 2001 followed by the second 500 mw unit in May 2002.

For the HPCL-SEB joint venture project based on the refinery residue as fuel, selection of another joint venture partner is now under finalisation.

Of the six short-gestation projects with total capacity of 1,800 mw cleared, four have opted for Kakinada and its neighbouring areas. Most of them have finalised their naptha/furnace oil tie-up and have taken up preliminary work. Sources in the state electricity board confirmed that 600-700 mw power will be available from these projects by the end of 1999.

While thermal and naptha/furnace oil-based power projects are now being left for the independent power producers, the state government is planning tapping hydro resources for power generation.

It has obtained an OECF loan for generating 900 mw under the Srisailam hydro system by setting up six units of 150 mw each.

The project cost has been estimated at Rs 2324.55 crore and the first unit will be commissioned in October next year, followed by one more unit every six months.

The electricity board now feels confident that with these power projects finalised, power shortage in Andhra Pradesh will be a thing of the past.

As it is, there is no power cut in the state as of now, the only cut of 20 per cent on industrial consumers having been lifted in May this year.

The board is confident that even in the summer of 1999, there will be no power cut on any sector.

The power availability in the state now is 29,626 million units per day as against a demand of 29,788 million units, including the power needs of the agricultural sector for the kharif season.

The board feels that with deft handling of distribution and cutting down pilferage and transmission losses, it will be able to manage the next one year without any power cut.