You are here: Home » Companies » News
Business Standard

IPPs invest Rs 32,991 cr on their projects

Among the 28 players that have inked pacts with the state, two firms -- Sesa Sterlite and GMR Kamalanga Energy -- have started commercial production

BS Reporter  |  Bhubaneswar 

The independent power producers (IPPs) have invested Rs 32,991 crore on their proposed coal-fired projects in Odisha after entering into memorandum of understanding (MoU) with the state government.

Among the 28 players that have inked pacts with the state government, two have commenced commercial production- Vedanta Group firm Sesa Sterlite and GMR Kamalanga Energy Ltd. Sesa Sterlite has fully commissioned its 2,400 Mw (4x600) power project at Bhurkamunda near Jharsuguda.

The company has invested Rs 8,038 crore on the plant. GMR Kamalanga has commissioned three 350 Mw units of its proposed 1,400 Mw plant at Kamalanga in Dhenkanal district. It has invested Rs 5,590 crore.

Others like Jindal India Thermal Power Ltd (JITPL), Ind-Barath Energy Utkal Ltd and Monnet Power were in the advanced stage of commissioning their projects.

The IPPs that have made substantial investments on their projects are JITPL (Rs 4,564.26 crore), Monnet Power Company Ltd (Rs 4,100 crore), Lanco Babandh Power Ltd (Rs 4,850 crore) and Ind-Barath Energy Utkal Ltd (Rs 2,954 crore).

The IPPs have a combined production capacity of 37,000 Mw. The state’s share is pegged at around 6,000 Mw from these projects.

Odisha is currently facing an unprecedented rise in demand for power fuelled by rural, industrial and economic development. Capacity addition of about 50,000 Mw is coming up in Odisha through state initiatives, Ultra Mega Power Projects (UMPPs), NTPC and private IPPs.

Two UMPPs, each of capacity 4,000 Mw are planned in the state. While the state grid will get 1,300 Mw from the first UMPP at Bhedabahal near Sundargarh, the second UMPP proposed at Narla in Kalahandi district would supply 2,000 Mw to the state. NTPC is setting up two super thermal power plants in the state, each with capacity of 1,600 Mw at Darlipalli in Sundargarh district and Gajamara in Dhenkanal district.

While Odisha is making all out efforts to expedite and provide necessary fill-up to the void created to meet the surging energy demand in the country, the most hindering factor for implementation of these projects is fuel security which is at stake due to the Supreme Court ruling. The apex court in its August 24 order had scrapped the licenses of 204 coal blocks allocated between 1993 and 2010.

The 18th Electric Power Survey of Central Electricity Authority (CEA) has forecast the peak demand of 5,322 Mw and annual energy requirement of 33,113 million units (MU) for Odisha for 2015-16. The peak power demand is expected to rise to 6,749 Mw and annual energy requirement to 52,566 MU in 2021-22 for the state.

First Published: Sun, November 23 2014. 20:15 IST