Alstom to supply components for 1GW Neyveli thermal power project in India

18 December 2013 (Last Updated December 18th, 2013 18:30)

Alstom has won a contract from Bharat Heavy Electricals Limited (BHEL) to supply components and services for the 1,000MW Neyveli new thermal power project in Tamil Nadu, India.

Alstom Boiler

Alstom has won a contract from Bharat Heavy Electricals Limited (BHEL) to supply components and services for the 1,000MW Neyveli new thermal power project in Tamil Nadu, India.

Under the contract valued at €125m, Alstom and BHEL will work together to conceptualise, design, engineer and supply two tower boilers, the complete lignite milling and firing equipment, and critical components.

Alstom will manufacture the equipment at its facilities in Stuttgart, Germany as well as in Durgapur and Shahabad of India.

Alstom Steam business senior vice-president Andreas Lusch said: "Our extensive local manufacturing footprint and resource capability will be mobilised along with BHEL teams to make the project a success."

In November, BHEL secured a €307m contract from the project developer Neyveli Lignite Corporation (NLC) to provide a steam generator package for the lignite-based power plant.

"NLC's proposed project will feature two thermal units of 500MW each and will replace the 600MW Thermal Power Station-I, units of which were commissioned between 1962 and 1970."

NLC's proposed project will feature two thermal units of 500MW each and will replace the 600MW Thermal Power Station-I, units of which were commissioned between 1962 and 1970.

The developer is likely to commission the units, which will be fuelled (lignite) by pithead mines operated by NLC, in June and December 2015, respectively.

The project will deliver its output to the southern states including Tamil Nadu, Karnataka, Andhra Pradesh, Kerala and Puducherry under power purchase agreements signed between Tamil Nadu Generation and Distribution Corporation and distribution companies of those states.

NLC has secured a rupee-term loan agreement worth €297.8m from the State Bank of India in March 2012 to partly meet the debt requirement of the project, which will be funded in debt-equity ratio of 70:30.

The Indian Government has sanctioned the project in 2011 at an estimated cost of €703.1m including interest during construction of €66.6m and foreign exchange component of €115.4m.


Image: Alstom supercritical boilers installed in a coal-fired power plant. Photo: courtesy of Alstom.

Energy