The Odisha government has approved construction and installation of the third and fourth units by state-owned Odisha Power Generation Corporation (OPGC) at its Ib valley plant near Jharsuguda.
The two new units will add 1,320 Mw capacity to OPGC's existing power station at the site which has an installed capacity of 420 Mw.
"The government has been pleased to approve the construction and installation of units-3 & 4 of Ib thermal power plant of OPGC at a cost of Rs 11,547 crore with a debt equity ratio of 75:25. The equity participation between the Odisha government and AES Ltd will be in the ratio of 51:49," Sangramjit Nayak, joint secretary (energy) wrote to director (finance) of OPGC.
OPGC had recently tied up funding of Rs 8,660 crore from Power Finance Corporation (PFC) and Rural Electrification (REC), by executing a loan agreement with the two Central PSUs. The balance funding is to be borne proportionately by the Odisha government and US-based AES which hold 51 per cent and 49 per cent stake respectively in OPGC.
The additional capital infusion by AES and the Odisha government is set to begin after 2015 as OPGC has cash to go ahead with project implementation. The expansion plan is scheduled for commissioning during the 12th Plan period (2012-17).
The Ministry of Coal has allocated Manoharpur and dip side of Manoharpur coal blocks for catering to OPGC's expansion plan. Though Manoharpur and dip side of Manoharpur coal blocks were allocated for the OPGC project, it is projected that the coal mine would be in a position to achieve full capacity production two years after the commissioning of the power plant.
The development of the coal blocks were affected due to the classification by Union ministry of environment & forests (MoEF) as 'No-Go' category which were reclassified into 'Go' category only in June 2011.
This had prompted the state government to seek tapering coal linkage to support the OPGC expansion plan.
