Fillip for Srei power plant

The thermal power plant of the Srei group at Haldia has eventually found a buyer, with West Bengal State Electricity Distribution Company agreeing to purchase 300 MW.

By Pinak Ghosh in Calcutta
  • Published 10.09.18
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Calcutta: The thermal power plant of the Srei group at Haldia has eventually found a buyer, with West Bengal State Electricity Distribution Company agreeing to purchase 300 MW.

According to government sources, the state electricity regulatory commission in an order issued late last month has approved a supplementary agreement to the principal power purchase agreement signed in 2010 - that allows power to be bought at an ad hoc tariff of Rs 3.89 per unit subject to a final rate set by the commission.

Having obtained an environmental clearance from the state pollution control board in 2010, the project subsequently faced several hurdles starting from a pollution control moratorium at Haldia to obtaining coal linkage and securing power purchase agreements.

In between, there has been a change in the project configuration from the original plan of having three units of 135 MW each to three units of 150 MW each.

On account of the shortage of domestic coal and adequate supply of imported coal, the generator had to obtain a clearance from the environment ministry in 2016 to use imported coal and blend up to 30 per cent domestic coal sourced through e-auction.

Earlier this year, the project has been renamed from India Power Corporation (Haldia) Limited to Hiranmaye Energy Limited and received fresh clearances from the state pollution control board and environment ministry.

Having now secured a power purchase agreement, sources said the project would look at the securing coal through the Shakti scheme of the Centre.

"Incidentally, there was an original long term power purchase agreement with the state distribution company in 2010 itself. But it was subsequently scrapped as there were uncertainties on account of the availability of supply from the unit. Considering the facts that there is already a generating unit in the state, future load growth and the potential of power exports, the agreement could be useful," a source said.

Bengal has a current installed capacity of 8,990 MW comprising state owned generating units as well as independent power producers. The peak power demand in the state is around 8,450 MW.