The Orissa Power Generation Corporation (OPGC), a joint venture between AES Corporation and the Orissa government, is expected to invite global tenders, for the 1,200 megawatts (MW) expansion (units 3 and 4 of 600 MW each) at its Ib Valley-based thermal power complex by August to September 2009. The financial closure for the project expansion is expected by December 2009. OPGC and Gridco are expected to enter into a power purchase agreement for the expansion project soon.
The company intends to accelerate the basic work of the project such as acquisition of land, forest and environment clearance, approval of mining plan, rehabilitation, and building internal infrastructure for the benefit of the prospective vendors.
The two coal blocks at Manoharpur and Dipside Manoharpur in Ib Valley segment of Mahanadi Coalfields Ltd (MCL) have been allocated for the project. For mining purpose, the required land is approximately 2,000 acres, while land required for the construction of residential quarters and the power plant would be around 350 acres. Environmental clearance for the project is expected shortly. All of the project’s statutory clearances are in place.
OPGC is currently examining the Engineering, Procurement, Construction (EPC) condition for boiler, turbine and generator (BTG) drafted by the Owner’s Engineers. The final location survey of rail route to transport coal to the project will be carried out by RITES, the Merry-Go-Round consultant.
The company has filed an application for transit coal linkage with the ministry of coal to begin the coal production from captive mines. Of the two blocks allocated to OPGC, at the proposal for mining at the Manoharpur has been authorized while acquisition of land is underway. The district administration has cleared the mining lease application for Manoharpur coal block. The clearance is pending with steel and mines department of the Orissa government.
Central Mine Planning & Design Institute has been allotted the task to explore and prepare a geological report for the coal block at Dip side Manoharpur.
The estimated cost for the expansion of the project is INR70 billion, of which INR50 to INR52 billion will be allocated to setup two 600 MW units while the remaining will be spent for coal mining. The project’s debt equity ratio is 80:20, with the equity portion anticipated to come from internal accruals of OPGC.