Case Study

Feasibility Study on Power Project in Cuddalore

T. Ramakrishnan

Feasibility studies for two mega ``show-case'' power projects in Cuddalore, Tamil Nadu, and Krishnapatnam near Nellore, Andhra Pradesh, have been commissioned by the National Thermal Power Corporation (NTPC). These two projects, to be implemented in the private sector, will have an installed capacity of 1,000 MW each.

Three independent agencies were chosen late last month for carrying out the studies from three different angles: environment impact assessment (EIA), topography, and soil investigation. Except for EIA, the reports for the other two aspects are expected in three months, NTPC officials told a team of Chennai-based presspersons, who were on a two-day tour of the Ramagundam Super Thermal Power Station (RSTPS) early this week.

The Centre has assigned to the southern region of NTPC the task of arranging for site-specific investigation and the formulation of the feasibility reports.

The EIA reports will be available in a year. Once this process is completed, the techno-economic clearance from the Central Electricity Authority (CEA) has to be secured for both the schemes.

According to Mr. R. K. Nair, executive director (Corporate Communication) of NTPC, the Central utility, which so far executed only two projects in south India out of about 15, is now keen on establishing a number of power plants to benefit the South.

For this region, the Corporation has programmed for a capacity addition of 1,350 MW during the Ninth Plan and 1,500 MW during the Tenth Plan.

As regards the 1,000-MW Cheyyur thermal power project, preliminary investigation such as topography survey and EIA have been completed. Geo-technical assessment works are nearing completion and a feasibility report is being prepared. The approval from the Tamil Nadu Pollution Control Board is awaited.

Mr. Nair maintains that the choice of fuel - coal or liquefied natural gas (LNG) - for the Cheyyur project has not yet been decided.

After commissioning the first unit of the 350-MW combined cycle scheme in Kayamkulam (Kerala) two months ago, the Corporation operationalised the second 115-MW unit on Feb. 28. It plans to expand the plant's capacity to 1,950 MW.

Negotiations have been initiated by NTPC with the World Bank for installing a 2,000-MW power station in Talcher, Orissa and supplying the entire power to the Southern states. This project is slated for implementation during the Ninth and Tenth Plans. Already, the power utility concluded a power purchase agreement with the constituents of the region.

The proposal for putting up one more unit of 500 MW in Ramagundam (A.P.) is likely to get the nod from CEA this month. At present, the installed capacity of RSTPS is 2,100 MW, with three 200 MW and three 500 MW units. All the state electricity boards in the region have agreed in principle to absorb power from the proposed unit.

The officials say overhauling of all the existing units has been carried out in a phased manner during off-season so that the peak summer demand can be met. During 1998-99, the Ramagundam Station till now generated around 14,300 million units (MU) with the plant load factor of about 85%.

Work on the coal-based 1,000-MW project in Simhadri near Visakhapatnam is going on in full swing and the power to be generated from this plant will be set apart for Andhra Pradesh. The first unit of 500 MW is scheduled for commissioning by March 2002. Taken up at a cost of Rs. 3,650 crores, this scheme is largely financed by the Overseas Economic Cooperation Fund of Japan.

Conscious of the potential for revamp of the aging thermal units in the country, NTPC signed a pact with a German institution three months ago to form a joint venture company in the field of renovation and modernization (R&M). Both the parties will identify the R&M works in India and abroad and contribute equally to the equity of the proposed company, Mr. Nair adds.