Bhel Awarded Pragati Power Project Contract

The contract for the supply of equipment to the 330 mw gas-based Pragati power project has been awarded to Bharat Heavy Electricals Limited (Bhel) at a cost of Rs 800 crore.

The decision was taken by the Delhi Vidyut Board when several attempts to augment capacity through private power projects failed to make much headway.

The project is to be set up at an estimated cost of Rs 3.2 crore per megawatt.

Unlike other DVB projects, the Pragati power plant will be owned by the board. Bhel will execute the project on a turn key basis. DVB did not adopt the bidding route but selected Bhel through negotiations.

 

The entire project cost is estimated at Rs 1,077 crore and is likely to be funded out of the Central Plan funds for the states. While the equipment cost comprises roughly 75 per cent of the total cost, the remainder consists of interest during construction and financing costs.

Gas for the project will be provided through the HBJ pipeline, which also supplies gas to the existing Indraprastha power project. The Indraprastha power plant is situated adjacent to the site for the Pragati power project.

The gas turbines for the project are to be commissioned within 22 months with the steam turbines being commissioned within 30 months.

The Pragati power project is expected to ease the power situation in Delhi which is facing its worst ever power shortage of around 700-1000 mw.

Due to a huge shortfall in the availability of electricity from various grids, DVB has resorted to extensive loadshedding in many areas.

This summer, the load shedding has been more severe due to the sudden spurt in demand, due to the early heat wave.

The demand could not be met as some of the power stations were undergoing routine annual maintenance.

DVB had been trying to augment capacity to meet the shortages through independent power projects_ which, however, did not make headway. DVB had been negotiating with the promoters of the Bawana project which has a capacity of around 1000 mw.

While the first phase of the Bawana project (400 mw), which was being negotiated with Reliance, has already been terminated, the Delhi government has still not cleared the second phase of the Bawana project (600 mw).

As a fallout, DVB is set to transfer the gas linkage procured for the first phase of the Bawana project on to the Pragati power project.

Sources said as per the fuel linkage, the project would be getting 2 MCMD of gas from the HBJ pipeline.

The second phase of the Bawana project is still hanging fire on account of lack of any payment security package for the promoters of the project.