Coal linkage deals to relieve UP power crisis

In a major breakthrough for power-starved Uttar Pradesh, two central coal PSUs have signed coal linkage agreements with the UP Thermal Power Generation Corporation, for the supply of fuel for four new units of 250 Mw each to be set up at thermal power plants in Parichha and Harduaganj, thus adding a fresh generation capacity of 1,000 Mw.

According to the agreement, Bharat Coking Coal Ltd will supply 1.98 million tonnes of coal for a unit of 250 x 2 Mw capacity at Pariccha in Jhansi. Central Coalfields Ltd will supply the same quantity to the new unit of 250 x 2 Mw, at the Harduaganj plant in Aligarh.

All the remaining formalities for the four new units are expected to be completed by October and construction is likely to commence soon after that.

The UP Thermal Power Generation Corporation, had, in June, placed orders with Bhel worth Rs 2,448 crore for supplying equipment for four 250 Mw thermal power units at the Pariccha and Harduaganj thermal power stations. Bhel will supply boilers, turbines and generators for the four new units while the corporation has floated open tenders for the balance of plant (BOP) works which includes coal and ash handling plants and other miscellaneous works.

The power generation at the 250 x 2 units at Pariccha unit is likely to commence within 35 months and at Harduaganj in the next 39 months, from the date of commencement of the construction work. All the four units are targeted to be commissioned in 2008-09.

In December 2005, the state government had approved a proposal for the expansion of the power generation capacity of the existing thermal power plants in view of the mounting power crisis. According to the proposal, a total of fresh capacity of 1,550 Mw was proposed to be added by installing new units at Panki, Obra, Pariccha and Harduaganj. Of the four plants, the expansion of the Panki unit was gas-based and has been deferred due to the non-availability of gas.

The Power Finance Corporation of India has already agreed to fund the expansion project of the Pariccha and Harduaganj thermal power stations .

The PFC has communicated its consent to the Up Thermal Power Generation Corporation to fund the expansion project to the tune of Rs 2,660 crore. The rest of the cost would be met from budgetary support by the UP government.

"The PFC would fund nearly 70 per cent of the project cost and the rest would be provided by the state government through budgetary support" said Ashok Khurana, principal secretary, energy, adding that "for the current fiscal 2006-07, a provision of Rs 400 crore has been made in the state budget''.

The borrowing from the PFC would be against the borrowing of the assets of the power generation utility.

The UP government had, last December, approved a plan for adding 1,000 Mw of additional capacity in the next three years with an estimated investment of over Rs 5,000 cr.

The government had also approved a plan for investment of Rs 1,000 crore for strengthening the transmission network for wheeling an additional 1,000 Mw of power.