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Tuesday, February 1, 2011

Doubts over coal transport cast shadows on Tilaiya UMPP


Reliance Power's inability to finalize a system appropriate for the transport of coal is acting as a major hurdle for the Tilaiya UMPP. While the developer has recently approached the Ministry of Railways (MoR) for forming a Joint Venture responsible for linking the project with the Kerandari B and C coal blocks and the subsequent transport of the fuel, no conclusive word is forthcoming from the latter.
  • As a result, the Central Electricity Authority (CEA) has been forced to issue an advisory to Reliance asking it to expedite the tie-up. As of now, the developer, after receiving the final forest clearance in November, has started the ground work. 
  • The project is being executed by the Reliance Power's subsidiary, Jharkhand Integrated Power Limited (JIPL). As per the commissioning schedule proposed by the company, the first unit of the project is due to be commissioned during May 2015, while the five remaining units are expected to go on steam at successive intervals of five months until June 2017, when the entire project would be operational
  • The Kerandari coal blocks, with an estimated reserve of 972 MT, were allocated to Jharkhand Integrated Power Limited, a special purpose vehicle (SPV) floated by Power Finance Corporation (PFC) for preliminary development activities at the Tilaiya UMPP. The ownership of the SPV was later transferred to Reliance Power, in August 2009, along with the linked mines.

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