Fsa Signed For Kondapalli Project

The stage is now set for starting work on the Rs 1,200-crore Kondapalli power project of 355 mw near Vijayawada, with the signing of the fuel supply agreement.

Hindustan Petroleum Corporation Ltd will supply 0.45 million tonnes per annum of naptha for 15 years for the short gestation period project.

An agreement to this effect was signed on Monday between HPCL and the chief executive of Kondapalli Power Corporation Ltd.

The fuel will be supplied from HPCLs refinery at Visakhapatnam entirely through pipelines, thereby avoiding rail and road transport.

A part of the Lanco Group engaged in various activities like power, steel, cement, construction and shipping, KPCL has Korea Heavy Industries Ltd as the EPC ( equipment procurement and construction) contractors.

 

The UK based Eastern Generation Ltd, which will have a 30% stake in the project, will be the operation and maintenance contractors for the independent power producer.

The entire power generated will be absorbed by the state electricity boards grid.

A KPCL spokesman said that the financial closure will be completed by February and the first unit commissioned 18 months thereafter. The station will have two gas turbines and one steam turbine.