Mahanadi Thermal Power Project, Chhattisgarh, India
The Mahanadi coal-based thermal power project is located approximately 125km away from the Morga II coal block in the Janjgir-Champa district of Chhahattisgarh, India.
KSK Energy venture is the owner and developer of the thermal power project.
The project was initially planned for 1,800MW capacity but is scheduled for expansion due to the availability of extra fuel from the Gare Pelma Sector III coal block. Its capacity will be doubled to 3,600MW by using the additional coal resources. The first two units of the plant are expected to be commissioned in 2013 and the rest are expected to be complete by 2014.
Upon completion, the Mahanadi project will be one of the largest single largest green field projects upon completion. Power Grid Corporation of India (PGCIL) will purchase the power generated by the plant under a bulk transmission agreement.
The Indian Ministry of Environment and Forests granted environmental clearance for the project, which was followed by the Chhattisgarh Environment Conservation Board issuing its consent.
Mahanadi coal-based power plant development details
The $3.6bn Mahanadi power project is being developed in two phases. Each phase will have an installed capacity of 1,800MW resulting in a total generating capacity of 3,600MW.
Makeup of KSK's 3,600MW plant in Chhattisgarh
Around 3,300MW of coal-generated power is being added at Barh near Patna in Bihar, India.
The Mahanadi thermal power project is being built over an 830ha land. It will be equipped with boilers, electro static precipitators, 765kV pooling facility for evacuation, turbine generator, coal handling plant, cooling towers, and raw water reservoir.
It will use 12 sets of turbine bypass valves with CCI technology, supplied by Shandong Electric Power Construction Corporation (SEPCO). The utilisation of high and low pressure lines of the technology will make each bypass application accurate.
Coal required for phase I of the plant will be supplied from Morga II coal block of Gujarat Mineral Development Corporation (GMDC), which had agreed to supply seven million tonnes of coal per annum. The coal needed for phase II will be supplied from Gare Pelma sector III coal block of GIDC, which has also agreed to supply seven million tonnes of coal per annum.
Contractors for Indian thermal power plant of KSK Energy Ventures
China-based SEPCO was selected as EPC contractor for the project. Under the terms of the contract, the company is responsible for the supply, design, construction, engineering, commissioning and testing services.
Petron Engineering construction, Simplex, Punj Lioyd and many other Indian companies have been awarded sub-contracts for construction and other activities related to the project.
Financing of the Mahanadi power project
The project is being financed through a combination of debt and equity. A consortium of 27 banks and financial institutions has issued $2.88bn of senior and subordinate debt for the project. Equity investment worth $720m was also raised. IFCI purchased 7.72% of equity stake in the project for $56m.
India's power market
India's total power generation during the fiscal year 2012 was 876.89 billion units. In 2011-12, the country faced energy shortage of 10.2% and peaking shortage of 11.1%. The peaking shortage was faced by almost all the regions, with the southern region facing 15.6% shortage and the eastern region facing 4.8% shortage. The central electricity authority of India expects a surplus output in the northern part, as the regions are dominated with hydro power capacity.
The country's major source of power generation is coal. According to the 12th five year plan, 2016-17, the country's coal demand is anticipated to be 980 million tonnes, with only 795 million tonnes available. Filling of the gap between supply and demand will depend on various factors, such as availability of land, environment and forest clearance, as well as allocation of coal blocks.