OPGC to place equipment orders by August-end

The state owned power generation utility- Orissa Power Generation Corporation (OPGC) would place orders for boiler turbine generator (BTG) by the end of August this year to implement its 1,320 MW (2x660) expansion plan at Ib valley near Jharsuguda.

“We had discussions on the expansion plan of OPGC wherein they are going to add two units of 660 MW each. The state power utility is almost in a position to place orders for meeting its expansion plan and BTG order is set to be placed by the end of August,” said Chief Secretary B K Patnaik.

OPGC presently runs two units with a combined capacity of 420 MW.

 

On coal linkage for the capacity addition, he said, “We are going to have a separate meeting with Mahanadi Coalfields Ltd (MCL) authorities for securing coal linkage. Though coal blocks have been allocated in favour of OPGC, coal cannot be utilized as the two power units will be commissioned before production takes off from the blocks.”

It may be noted that the Chief Secretary had recently shot off a letter to Coal secretary Alok Perti, requesting for a tapering linkage.

“OPGC has already applied for tapering coal linkage to the Ministry of Coal. The project has also been recommended by the Union ministry of power to the Ministry of Coal for allocation of linkage,” the state Chief Secretary B K Patnaik has said in a letter to the Coal secretary.

Tapering linkage is the short-term linkage which is provided to those coal consumers who have been allocated captive coal blocks for meeting the coal requirements of their linked end use plants (EUPs) in such cases where the production of coal from the blocks does not synchronize with the requirement of the EUPs.

OPGC is currently pursuing capacity addition of 1,320 MW at Ib thermal. The company has been allocated captive coal blocks- Manoharpur and Manoharpur dipside in Sundergarh district to support its capacity expansion plans. While the coal block along with dedicated rail corridor development is in advanced stage of progress, the power plant will be in a position to achieve financial closure and begin construction towards the end of 2012. The plant is expected to be commissioned by 2016-17 within the 12th Plan period.

The status of these coal blocks allocated to OPGC, which were earlier categorized as 'No-Go' area were changed to 'Go' category in June last year. This has led to delay in achieving certain project milestones, particularly forest and environment clearances.

It is anticipated that the coal mine would be in a position to achieve full capacity production two years after the commissioning of the power plant.

In the light of delay in production from the allotted coal blocks, the state government has sought tapering linkage from the Coal ministry.