ADAG firm Reliance Power is working on plans to invest close to Rs 10,000 crore to ramp up the capacity of its 220-MW Samalkot project in East Godavari district of Andhra Pradesh to 2,400 MW.The expansion plan is based on the supply of gas from Krishna Godavari-D6 block of Reliance Industries Ltd.
Proximity to the KG Basin gas landfall point, availability of land at the existing site, and strong demand for power in the Southern region have prompted the company to ramp up capacity, sources involved in the exercise said.
“Setting up of this expansion capacity near the landfall point would offer significant savings on transportation of gas. Being a brownfield project, the capacity will become operational within 18-24 months. The project has all the required inputs to start construction at site and qualifies for allocation of gas,” a source said.
The finalisation of the EPC (engineering, procurement and construction) contractor for the expansion capacity is underway, sources said, adding that environment clearance for the expansion of 1,200 MW has already been obtained and for the other 1,200 MW, it is under process.
The plant site is about 60 km from KG-D6 landfall point and the pipeline infrastructure for the expansion capacity is already available.
“There is strong demand for electricity, as the southern region is facing acute power shortage. Utilities in Karnataka, in the recently concluded Case 1 bidding, have got the tariff of around Rs 4 a unit for supply of power on a long-term basis. Utilities in Andhra Pradesh have also invited tenders for procurement of power and the bids are due for submission in July,” a source said.While transmission linkages for the evacuation of power from the plant site to the Southern Region grid already exists, it requires some strengthening, sources said.
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