CCEA approves power projects costing over Rs39,000 crore
07 Mar 2019
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The Cabinet Committee of Economic Affairs (CCEA) has given approval for four power projects involving total expenditure of over Rs39,000 crore, in a move to give a further boost to power generation in the country.
The projects approved by the CCEA at its meeting today include a 2x660 MW Buxar Thermal Power Project in Bihar, a 2x660 MW Super Thermal Power Plant (STPP) at Khurja in Uttar Pradesh, Khurja (UP), the 624 MW Chenab Valley Power Projects (private) in Kishtwar in J&K and the Teesta Stage-VI hydro-electric project scheme in Sirwani village of Sikkim.
In addition, the CCEA approved measures to promote development of hydro power and to alleviate the stress in thermal power projects.
The Buxar Thermal Power Project, to be set up in the Buxar district of Bihar, is estimated to cost Rs10,439.09 crore. The plant will be set up by SJVN Thermal Private Ltd, a wholly owned subsidiary of SJVN Ltd, a Mini Ratna CPSU under the ministry of power.
The Buxar TPP will be based on Supercritical Technology with two units of 660 MW each, equipped with latest emission control technology to protect the environment and high efficiency. The Buxar TPP will improve the deficit power scenario in Bihar and Eastern region. The Bihar government has already signed power purchase agreement (PPA) for supply of not less than 85 per cent of generated power.
The project is expected to generate substantial direct and indirect employment apart from various other socio-economic development in the project area. The Buxar TPP will start generating power from 2023-24.
The 1x660 MW Khurja Super Thermal Power Plant, proposed to be set up in Khurja, in Bulandshahar district of Uttar Pradesh, is estimated to cost an estimated Rs11,089.42 crore.
The CCEA also approved the allocation of funds for the development of the allotted coal block – the Amelia Coal Mine - in Singraulli district of Madhya Pradesh, at an estimated cost of Rs1,587.16 crore.
The project, to be set up by THDC India Limited, a Mini Ratna CPSU under the ministry of power, will be based on supercritical technology with two units of capacity 660 MW each, equipped with latest emission control technology to protect the environment and high fuel efficiency to generate power.
The Khurja STPP will improve the deficit power scenario of Northern Region and particularly of Uttar Pradesh, which has already signed power purchase agreement with THDC India Limited for purchase of 60 per cent of power from the project and the other beneficiary states like Uttarakhand, Rajasthan, Himachal Pradesh and Delhi.
The project is expected to generate substantial direct and indirect employment and result in overall development of district Bulandshahr and nearby districts of Western Uttar Pradesh. The Khurja STPP will start yielding benefits from 2023-24.
The CCEA has approved the investment sanction for construction of Kiru HE Project (624 MW) by Chenab Valley Power Projects Private Limited, at an estimated cost of Rs4287.59 crore. CVPPPL is a joint venture amongst NHPC, JKSPDC and PTC with equity shareholding of 49 per cent, 49 per cent and 2 per cent, respectively.
The project is located on River Chenab in Kishtwar district of Jammu and Kashmir. It envisages construction of a 135 m high concrete gravity dam, with installed capacity 624 MW (4 x 156 MW). The project would generate 2272.02 MU in a 90 per cent dependable year.
The project will provide much needed power to the Northern Grid and accelerate the process of development of remote areas of Jammu and Kashmir. The project is scheduled to be completed in a period of 4-½ years.
The Teesta Stage-VI HE Project is a run-of-river (RoR) scheme in Sirwani village of Sikkim, which will utilise the power potential of Teesta River. It involves construction of a 26.5 metre high barrage across river Teesta. The project would generate 2,400 MUs in a 90 per cent dependable year with installed capacity of 500 MW (4x125 MW).
The project was earlier proposed to be developed by LancoTeesta Hydro Power Ltd (LTHPL), an SVP promoted by the Lanco Group. However, due to financial crunch in the company, the project could not be completed by scheduled completion time.
Accordingly, the Corporate Insolvency Resolution Process (CIRP) was initiated by order dated 16 March 2018 by the NCLT, Hyderabad bench. In the bidding process under NCLT, NHPC emerged the highest bidder with bid amount of Rs907 crore. Accordingly, the investment proposal for an estimated cost of Rs5,748.04 crore, being implemented by NHPC Limited, a CPSU of. It has been approved by the CCEA on 7 March 2019. Completion period of the project shall be 60 months.
The CCEA also approved the recommendations of a group of ministers (GoM) constituted to examine the specific recommendations of a High Level Empowered Committee (HLEC) constituted to address the issues of stressed thermal power projects.
The CCEA has approved recommendations of the GoM, mainly relating to grant of linkage coal for short-term PPA - allowed existing coal linkage to be used in case of termination of PPAs due to payment default by DISCOMs - procurement of bulk power by a nodal agency against pre-declared linkages. It also approved an increase in quantity of coal for special forward e-auction for power sector and more regular auctions of coal linkages and non-lapsing of short supplies of coal.
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