Nagpur, Chandrapur on Tata Power's radar

Tata Power Company (TPC) has shortlised Nagpur and Chandrapur for setting up two thermal power stations of 500 mw capacity each. The company is conducting an inspection in both the areas and would firm up its decision within 6-7 months.

The company is also exploring similar possibilities in Jharkhand as part of its policy of setting up new power plants in coal producing areas.

The power plants will be set up either in Vidarbha or in Jharkhand. If they come up, these would be the first Tata plants in Vidarbha.Once the site is finalised, it would take around three-four years for the plant to become fully operational.

"There are various factors which have to be considered and hence the extended period of decision making," said D A Sathe, general manager, Tata Power. He was in the city to attend a CII organised seminar.

Sathe said that the power plants will require around 700 acre of land each. Other factors such as availability of coal, water, as well as facilities for disposal of fly-ash will also be considered.

The company is in talks with both government as well as private agencies for acquiring land for the project. Though land can be purchased from private parties, it would be better if some agency such as MIDC allots the land, Sathe added.

TPC may wheel the entire generation to the Maharashtra State Electricity Board (MSEB) grid or reserve a portion to be sold to other electricity boards, he said.

The cost of generation may be around Rs 4.50 per unit. Both the options of getting a linkage from Coal India (CIL), as well as mining captive blocks for meeting coal requirements are being studied.

While the Nagpur plant would be somewhere near the city, in Chandrapur, the company would prefer to have the plant near the Chandrapur Super Thermal Power Station, Sathe said.

In fact, TPC is on an expansion spree and is considering sites at several locations for new power plants. There are plans to expand the capacity of its Trombay plant by 250 mw.

A 1,000 mw is also being planned to be set up at a suitable place in coastal Maharashtra. Recently, the company also increased the capacity of its Jamshedpur plant to 427 mw, disclosed Sathe.