Chhattisgarh to shut down its first power plant over viability issues

Operations at the 200-Mw station were suspended in 2017-18 due to high costs and environment hazards; state recently decided to shut plant permanently

The first power station in Chhattisgarh is set to become history as the state government has decided to close down the units after examining its viability.

Four units each of 50-Mw were set up in Korba East Thermal Power Station—the first power plant in the region back in 1966. About two years ago, operations at the four units were suspended.

“Because of high production and maintenance costs, apart from environment hazards, the thermal power station was shut down in 2017-18,” spokesperson of state-run Chhattisgarh State Power Generation Company (CSPGC) said. The state cabinet recently took the decision to permanently shut down the units.

Besides the four vintage units, Korba East Thermal Power Station located in that district has two units of 120-Mw. The spokesperson said production in both the units would continue.

The CSPGC has major power projects in Korba---about 250 km from the state capital of Chhattisgarh. The region has been endowed with rich coal reserves, enabling power producers to set up unit in the district.

While the power consumption in the state has been increased following freebies, CSPGC claims that the closure of 200-Mw plant will have no impact on power supply. The state government has reduced the power tariff by half and providing free electricity to farmers that has escalated the demand.

“The state has an installed capacity of 3424-Mw and will continue to have 150 to 200-Mw of surplus power after the closure of 200-Mw station,” the spokesperson said. If the state runs short, it draws power from the central pool.