Reliance Power fires up second boiler at world’s largest integrated power plant and coal mining project in India

10 November 2013 (Last Updated November 10th, 2013 18:30)

Reliance Power has fired up another boiler, a key step for commissioning activity, of the second 660MW unit at the 3,960MW Sasan ultra mega power plant (UMPP) in Madhya Pradesh, India.

Reliance Power has fired up another boiler, a key step for commissioning activity, of the second 660MW unit at the 3,960MW Sasan ultra mega power plant (UMPP) in Madhya Pradesh, India.

The company will carry out tests on the second unit at the coal-fired plant this month and commission in December 2013. It has already commissioned the first 660MW unit of the Sasan UMPP in March 2013.

The project has been allocated three captive coal mine blocks - Moher, Moher Amlori extension and Chhatrasal, which have reserves in more than 750 million tonnes, and production has already begun at the 20 million tonnes an annum capacity at the Moher and Moher-Amlohri coal mines.

"The company will carry out tests on the second unit at the coal-fired plant this month and commission in December 2013."

The project covers around 10,000 acres of land, of which around 7,000 acres would be coal mines, and will become the world's largest integrated power plant and coal mining project once completed, the company claims.

Earlier in April 2009, the company and a consortium of around 14 banks led by State Bank of India reached a financial closure on the project, and the lending was done on a project finance basis with an estimated project cost of approximately INR200bn ($4bn) with a debt-equity ratio of 75:25.

The project will supply its output to 14 procurers in seven states, Madhya Pradesh, Punjab, Uttar Pradesh, Delhi, Haryana, Rajasthan and Uttarakhand, at a levelized tariff of INR1.196/kWh.

The pit-head coal-based power project, which was awarded to the company through a competitive bidding process and transferred to it in August 2007, was the first domestic coal-based UMPP granted in the country by the government.

Earlier, the Ministry of Power, in collaboration with the Central Electricity Authority and Power Finance Corporation, introduced a program to develop coal-based UMPPs in India.


Energy