State-run hydro power generator, Orissa Hydro Power Corporation Ltd (OHPC) got government nod in the high level project approval committee meeting to renovate 5th and 6th unit of Burla hydro power project, costing Rs 296 crore.
“The OHPC renovation application was approved on Thursday in the committee meeting. It (the approval) will be sent soon for government order,” said B K Patnaik, the state Chief Secretary.
The 5th and 6th units of Burla hydro power project, each having capacity of 37.5 Mw, were installed 47 year ago and had frequent beak down complains. The renovation work aims at increasing the power generation capacity of the two units to 86 Mw, from the present 75 Mw, said Sahadeb Khatua, managing director of OHPC.
“In the renovation work, we will replace the old machines with new ones and the entire process might take three years. We will soon float the tender, in which only product manufacturers will be allowed to bid,” he said.
The work order involves supplying the machines and erecting them, which is why the bidding process will be limited to only manufacturers, Khatua added. Burla hydro power project has a total power generation capacity of 275.5 Mw. The Rs 296 crore renovation cost of the two units will be part-financed by OHPC at Rs 96 crore from its own coffers. The company will borrow the rest Rs 200 crore from open market.
“REC (Rural Electrification Corporation Ltd) and PFC (Power Finance Corporation) have shown interest to provide us loan for the project. But we can take loan from any funding agency at competitive market price (interest rates),” Khatua said. Both REC and PFC are Central government-owned power finance companies.
