Bharat Heavy Electricals Limited (BHEL) has won a contract in an international competitive bidding conducted by Neyveli Lignite Corporation (NLC) to provide a steam generator package for a proposed 1,000MW lignite-based power plant in Tamil Nadu, India.
According to the contract, which is valued at €307m, BHEL will supply a steam generator package, which is claimed to be the highest rating pulverised lignite fired steam-generator, for two thermal units of 500MW each for the project.
The company plans to develop the proposed project at Neyveli, replacing the 600MW Thermal Power Station-I, units of which were commissioned between 1962 and 1970. NLC expects to commission the first unit of the plant in June 2015 and the second unit in December 2015.
Once operational, the project, which will be fuelled (lignite) by pithead mines operated by NLC, will supply its output to the southern states of the country under power purchase agreements signed between Tamil Nadu Generation and Distribution Corporation and distribution companies (Discoms) of other states.
The southern states of Tamil Nadu, Karnataka, Andhra Pradesh, Kerala and Puducherry will share the output among themselves according to the directives of the Indian Ministry of Power.
In March 2012, NLC signed a rupee-term loan agreement worth €297.8m with the State Bank of India to meet part of 70% debt requirement of the project, which is being funded debt-equity ratio of 70:30.
In 2011, the Government of India sanctioned the project at an estimated cost of INR59bn (€703.1m). including interest during construction of INR5.59bn (€66.6m) and foreign exchange component of INR9.69bn (€115.4m).
The BHEL's latest order builds on successful previous contracts it received from the same customer for two 500 MW Tuticorin, two 250 MW Neyveli and two 125 MW Barsingsar projects.
Image: NLC is developing 1,000MW lignite based power plant at Neyveli in Tamil Nadu. Photo: courtesy of Neyveli Lignite Corporation.