NTPC proposes to invite tenders for power generation equipment for all its upcoming gas-based projects having a capacity of 10,000 mw

State-run power generator NTPC proposes to invite tenders for power generation equipment for all its upcoming gas-based projects that will have a capacity of 10,000 mw, without waiting for assured supply of fuel, to put pressure on the government to allocate natural gas for its stranded plants. 

The department of public enterprise (DPE) forbids state firms, such as NTPC, from ordering equipment and starting construction before securing fuel for the projects. This has put the power major at a disadvantage via-a-vis private sector firms that place orders and start work on plants even before securing any gas linkage. NTPC would place orders as soon as the government allocates gas. 

“NTPC will be a major loser once government starts releasing gas for new projects based on the level of investments put in by companies and extent of work done on projects,” said a senior NTPC official involved in finalising of new strategy. 

“The notice inviting tender (NIT) for sourcing equipment will prove readiness of NTPC to receive gas and thereby help it to counter procedural disadvantages that put private projects ahead in the priority order for fuel linkage,” the official added. 

According to the plan, the power PSU will invite tender for about 10,000 mw of capacity, including 2,600 mw worth expansion projects at Kawas and Gandhar, which are in dispute with Reliance Industries in the Bombay High Court. 

While bids would be evaluated, orders will not be placed till the company gets assurance on gas allocation . Out of the 10,000 mw, about 7,500 mw of projects are new and expansion projects proposed by NTPC for completion during the 12th plan period (2012-17 ). Once the government starts the process of allocation of gas from either RIL’s KG D-6 block or other discoveries of ONGC, the prior tendering process will help NTPC to not only get priority but also help it to commission projects in a short span of time. 

For its 12th Plan projects that are stranded due to want of gas, NTPC proposes to prepare fresh detailed project reports and get mandatory statutory clearances afresh in cases where such clearances are lapsing. The NIT process will be initiated immediately after completing this process. 

NTPC does figure in the new list of projects finalised by the power ministry for allocation of KG D-6 gas. In its submissions to the empowered group of ministers (EGoM), the ministry has put projects of Lanco, GMR, GSPC, Reliance Power , Torrent, Uttarakhand’s Kashipur project for allocation of gas owing to their preparedness to complete the projects before the end of current Plan. 

NTPC projects that will need quick allocation of gas include, its expansion projects of 1,000 mw each at Badarpur, Auraiya, Faridabad and Dadri. Besides, the PSU has also proposed 2,000 mw expansion project of Ratnagiri Gas and Power (RGPPL). In addition , NTPC’s gas-based capacity at Dadri could be further expanded if gas is available. NTPC has indicated initial gas requirement of 30 mmscmd for all the proposed new projects. 

“NTPC is better place to execute new gas-based projects as most of it would be coming in areas close to their running power plants. Release of gas linkage could really put these projects on fast track unlike several other private sector projects,” said an analyst dealing with the power sector. 

Government has projected that gas availability will increase from present 142 mmscmd to 152 mmscmd by 2011-12 and further to 186 mmscmd. This is expected to release large quantities of gas for the power sector, and the change in tedering process would put NTPC projects to an advantage.

Government threatens to cancel coal block allocations of four companies including NTPC and of Coal India itself

The Union government has threatened to cancel the coal block allocations of four companies, including the country's largest power generator, NTPC, and of Coal India Ltd itself, the largest mining firm.The ministry's showcause notices to these comapnies has asked for explanations for failure to develop blocks allotted years before, despite repeated reminders.The ministry has served similar notices to Jharkhand State Mineral Development Corporation for delays in development of the Patratu and Robodih OCP coal blocks and Mumbai-based Binani Cement Ltd for the Nimbri Chandavadan lignite block in Rajasthan.

The ministry has prepared a list of 93 captive coal blocks where development has not been satisfactory and is in the process of threatening the block holders with de-allocation by slapping showcause notices. Since September 22, the ministry has issued similar notices to 50 companies.

NTPC and Coal India have received flak for delays in development of two blocks, Brahmini and Chichro Patsimal in Orissa, jointly allotted to them in 2006. The two blocks, with geological reserves of two billion tonnes, were to be developed by a 50:50 joint venture between the two companies. Coal from the blocks was to be used for the Kahalgaon and Farakka expansion projects of NTPC.

By the original plan, the blocks were to see production from October 2011. A review meeting in June 2009 found all milestones still pending. Another review this July showed the JV company had not been formed. "It is seen that the company has not made any progress at all and thus it appears that the company is non-serious about timely development of the block," the showcause notice to both states.

It asks for an explanation within a month and asks why the delay should not be termed a breach of the terms of allotment.NTPC was allotted eight coal blocks with total reserves of around five billion tonnes in the past six years. All were expected to come into production between April 2008 and March 2012. Yet, not a single block has commenced production, even while the power generator had set for itself a target of coal production from captive mines to 47 million tonnes per annum by 2017.

Government to set up bankers' group to make low-cost funding available for power projects being set up under the National Solar Mission

The central government plans to set up a group of public sector banks headed by State Bank of India (SBI) which would brainstorm on ways to make low-cost funding available for power projects being set up under the National Solar Mission.The group of banks will try and work out a financial instrument specifically designed for low-cost financing of solar power projects. These projects, to be set up at a cost of Rs 15 crore for every megawatt (Mw), are at least three times costlier to erect as compared to their conventional counterparts.“We are making this group of banks headed by SBI which would sit and do brainstorming to see what are the steps required to make projects more viable by making lower cost of funds available for solar projects in the mission,” Deepak Gupta, secretary in the Ministry of New and Renewable Energy (MNRE), said.“I am writing to all the major public sector banks. The group will have its first meeting before December 15,” he added.

High capital cost, average gestation periods, multi-year benefits and low maintenance cost are some of the characteristics of solar power projects which make these different from conventional power plants. “We are asking the bankers to design a financial instrument specific for these needs. The bankers’ group will work on the financing pattern for only solar projects. We have asked the banks to nominate their representatives,” Gupta said.

One of the prime reasons why banks have been wary of lending for solar power projects is the ill financial health of distribution companies. Under the solar mission, a developer has to sign a power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam Ltd (NNVN), the government’s power trading arm, which would sell the high-cost solar power to distribution companies after bundling it with low-cost thermal power.

“The one question that the lenders are asking is that these PPAs should be assignable in the event of a payment default by the distribution company. The main concern for the banks is the payment link between the distribution company and NVVN,” said James Abraham, Chief Executive Officer of Sunborne Energy. The company plans to invest over Rs 1,600 crore over the next four years in solar power projects in India. Assignable PPAs allow a lender to take over the project in case of a default.

Abraham, however, added that the PPAs for solar projects had been designed by the government in a manner that addressed this concern. “The payment link which was of concern has been broken in the PPA. So that, even if discoms default, NVVN will still be able to pay to the developer due to the payment security mechanism linked to the budgetary support of the ministry,” he said.

The proposal of using MNRE’s budgetary support for covering payment risk to developers under the solar mission has been approved by the finance ministry. MNRE is currently in the process of seeking Cabinet approval for the proposal.

However, lending for solar projects still remains risky for bankers, as it is an entirely new area of funding in India. MNRE’s move to set up a group of banks for seeking “innovative financing” for solar projects is a step in the right direction, according to the industry. “Banks are still in a learning phase in solar area. Through this group the banks will be able to share their learning and share risks across multiple projects,” Abraham said.

Industry experts have hailed the government’s decision to set up the group. “There is currently enormous funding pressure on the banking system, as 70 per cent of the funding requirement for solar mission is to come as debt. Also, huge dependence on regulatory subsidies and the risks of new technology selection will underline the economies of investment in the field. The group of banks would be a nice way to develop an understanding of these risks,” said Gokul Chaudhri, partner, BMR Advisors.

Maoists burn equipment of power plant being jointly set up by railways and NTPC at Nabinagar in Bihar's Aurangabad district

Armed Maoists burnt equipment of a power plant being jointly set up by railways and NTPC at Nabinagar in Bihar's Aurangabad district, Superintendent of Police Vivek Raj Singh said today. 

Over 50 naxalites raided the construction site of the proposed plant late last night and burnt several equipment including four dumpers, three hydra cranes and mixer machine worth lakhs of rupees, the SP said. 

They also kept some of the workers present their captive for some time and assaulted them, he said. 

A combing operation has been launched to track down the naxalites. 

The railway and NTPC are jointly setting up a 2000 MW power plant at Surar village in Nabinagar.

Chhattisgarh signs power purchase agreement with NTPC to get 50 percent power from its upcoming 4,000 MW coal-fired power plant

Chhattisgarh signed a power purchase agreement Thursday with India's largest power producer, the National Thermal Power Corporation (NTPC), to get 50 percent power from its upcoming 4,000 MW coal-fired power plant.Chhattisgarh will get 2,000 MW at Rs.2.59 per unit from NTPC's coal-fired project that will come up at Lara village in the state's northern coal-abundant Raigarh district.

Subodh Kumar Singh, managing director of the Chhattisgarh State Electricity Distribution Company signed on the power purchase agreement here on behalf of the state government in the presence of Chief Minister Raman Singh while M.K.V Rama Rao, NTPC's executive director (commercial), signed for his company.

NTPC had signed memorandum of understandings with the Chhattisgarh government in July 2009 for setting up five units each of 800 MW with ultra super critical technology. The Central government has already allocated coal mine for the project that is scheduled to begin power generation in 12th fifth year plan.

MoP censures NTPC on bulk tendering delays

The Ministry of Power (MoP) has lambasted NTPC for the inordinate delay in the award of steam generator (SG) and steam turbine generator (STG) packages for the 11 660 MW supercritical power units, proposed to be contracted out via the bulk tendering route. 

• During a recent meeting, the Power Secretary, P Uma Shankar, has made it clear that such delay in the bidding process is unacceptable, and directed the power firm to not stretch the award process beyond December this year.
• The MoP's displeasure is driven by its original intention of wrapping-up the award of contracts for these units by July 2010, while NTPC has claimed to be able to finalize the packages only by January-February 2011.
• The power major's inability to stick to schedule has been caused by the need for retendering the SG package, due to a technical glitch in Larsen & Toubro's offer. 
• As a result, NTPC will not be able to open the Stage-II bids for the SG package before December 12, 2010, even as the bid evaluation for the STG package has already started.
• NTPC still has to issue the tender for the crucial Balance of Plant (BoP) packages for these units. 
• NTPC's 2x660 MW Tanda extension and Solapur power projects; the 3x660 MW New Nabinagar, through a joint venture (JV) between NTPC and Bihar State Electricity Board; 2x660 MW Meja project, being executed by a JV of NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam; and DVC`s 2x660 MW Phase-II of the Raghunathpur project will be executed through the bulk award.

Land acquisition Madhya Pradesh for a power plant to be set up by Moser Baer challenged before the High Court

Land acquisition by State of Madhya Pradesh for a power plant to be set up by Moser Baer has been challenged before the High Court of Madhya Pradesh. The project has also been challenged for non-compliance with environment norms. The division bench of Chief Justice SR Alam and Justice Alok Aradhe on Tuesday issued notices to Union of India through Ministry of Rural Development, Ministry of Environment and Forest and State of Madhya Pradesh through Chief Secretary; Madhya Pradesh Pollution and Control Board and Moser Baer Power and Infrastructure Limited to file their replies within six weeks.

Petitioner Buddhsen Rathore has challenged the land acquisition for non-compliance with the provisions of Panchayat (Extension to Scheduled Areas) Act as the area comes within the 5th schedule of the Constitution of India. The petitioner has further contended that the provision of rehabilitation policy of Madhya Pradesh has also not been observed in this case. Annuppur district where the power plant is to be set up, has been declared as water scarcity district and prohibitory orders in this regard are already in force. Despite this, the petitioner alleged that the water resource has been allocated to Moser Baer ignoring the necessity of irrigation and drinking water in the district. The clearance for environment protection agency has also been taken without any public hearing, contended petitioner.

Moser Baer proposes to establish power plant in Jaithari block of Annuppur District in respect to which a Memorandum of Understanding between the State Government and Moser Baer has been signed. About 1380 acres of land has been acquired by the government for the project. US based Private Equity Fund, Blackstone has made an investment of about Rs 1,350 crore in Moser Baer for implementation of its various projects.

Koldam HEP-I: NTPC, state forest department to review submergence data

NTPC's first ever hydroelectric project (HEP), the 800 MW Kol Dam, still faces an uncertain future. The power major, along with the state forest department, has now been directed to resurvey the submergence data with respect to the site selected for the project and furnish a report on measures to safeguard as many trees are possibly.

• The power major is likely to expedite the matter, given its criticality to determining the parameters of the crucial impounding reservoir for the project, in consultation with the Ministry of Environment and Forests (MoEF). 
• This comes against the background of an environmental impasse that threatens to strangle the project. Notably, the Standing Committee of National Board of Wildlife (NBWL) had recently rejected NTPC's proposal to divert 124 ha of land, as about 50,000 trees stand endangered due to the project.
• The project, located in the Bilaspur district of Himachal Pradesh, envisages the construction of a 163 m high main dam, with a rock and gravel fill and clay core, a 1600 m long penstock tunnel of 6.45 m diameter, surface-type powerhouse, two diversion tunnels of 900m and 920m length and Francis turbines. The project has an estimated cost schedule of Rs 4527.15 crore.

Koldam HEP-II: MoP blames NTPC for stalemate

An otherwise-supportive Ministry of Power (MoP) has chosen to blame NTPC for the forest hurdle affecting the construction of the 800 MW Koldam HEP, the power major's first foray into the hydel realm. 

• The ministry is of the opinion that the issues raised by the National Board for Wildlife (NBWL) would not have come up if the project were on schedule. 
• A helpless NTPC has asserted that the project faces delays because of the excruciatingly slow progress of civil works by the Italian-Thai Development PLC (ITD). The severe cashflow problems faced by ITD and the consequently inadequate mobilization of resources have added to deferral caused by a series of geological and hydrological problems encountered at the project site, according to the power major, arguments that have failed to move the ministry.
• Accordingly, the ministry has now asked the power firm to make all out efforts to resolve the environmental issue and ensure that the project is not delayed further.
• In the wake of present circumstances, however, the project is likely to miss even its latest commissioning deadline of March 2012.

Adani Power synchronizes its fourth unit of 330 megawatt at Mundra in Kutch district of Gujarat

Adani Power Limited. (APL), a power business arm of Adani Group today announced the successful synchronization of its fourth unit of 330 megawatt (MW) at Mundra in Kutch district of Gujarat. With synchronization of this unit Adani Power completes commissioning of all 330 MW units at Mundra and has achieved total generation capacity of 1320 MW of coal fired thermal power generation.

Gautam Adani, Chairman Adani Group said  “I am pleased with the progress made by our  project implementation and commissioning team, we are expecting that the first 660 MW super critical unit too will be in operation in next couple of months and the subsequent units in rapid succession”

APL is setting up 4620 MW coal fired power plant at Mundra, consisting of four units of 330 MW and five units of 660 MW, the 660MW units are based on energy efficient and environment friendly super critical technology.  The financial closure of the entire 4620 MW project at Mundra has already been achieved.

The company has made arrangements for evacuating power from the Mundra power station by laying 400 kV Mundra to Dehgam transmission line in Gujarat covering 430 KM length  and ±500 kV HVDC line from Mundra to Mohindergarh covering  1000 KM length. 

Power min calls for benchmarks for forced, planned outages at NTPC stations

Unsure of what to make of the various levels of shortfall in generation at various NTPC-run power stations due to planned and forced outages, the Ministry of Power (MoP) has called for benchmarks of such occurrences, to see exactly where the power major stands.

• In this context, the MoP has asked NTPC to compare outages at its premises vis-a-vis those at power plants around the globe, to ascertain the efficiency of its plants.
• Pertinently, the coal-based stations of NTPC witnessed planned and forced outages of 8.65% and 2.25%, respectively, in the second quarter (Q2) of the current fiscal. The corresponding figures for Q1 were 5.81% and 2.84%. 
• The power utility's gas-based power stations also faced planned and forced outages 3.34% and 0.15% of the time in Q2, while, in the first quarter, the same were 4.15% and 0.29%, respectively.
• During the first two quarters of 2010-11, NTPC witnessed a shortfall of 3,064 MU in power generation, with five of its operational stations, namely Badarpur and Kahalgaon TPS, Rihand, Farakka and Talcher STPS, suffering due to outages.

Green clearances for PSU projects-I: EC pending for 9 NTPC-power projects

The power major, NTPC, seems to have a tough job ahead in its bid to develop its planned power projects on time, as environment clearance (EC) proposals for nine of its projects are still pending with the Ministry of Environment and Forests (MoEF) as of October 2010. This is despite the power major having overcome the initial hurdles of obtaining the recommendations of the concerned state governments for the EC. The projects in question are:

• 2x660 MW Meja TPP in Allahahabad, Uttar Pradesh (UP).
• 2x660 MW Solapur STPP in Solapur, Maharashtra.
• 3x660 MW Nabinagar STPP in Aurangabad, Bihar.
• 2x660 MW Tanda TPP Stage-II in Ambedkar Nagar, UP.
• 2x660 MW Gadarwara STPP Stage-I in Narsinghpur, Madhya Pradesh.
• 2x660 MW Dhuvaran STPP in Khambat, Gujarat.
• 2x660 MW Mauda STPP Stage-II in Nagpur, Maharashtra.
• Revalidation of EC for 1,300 MW Stage-II of Kawas and Gandhar gas-based projects in Gujarat.

Green clearances for PSU projects-II: 13 projects awaits FC

A total of 13 coal mining, power generation and transmission projects-- all being executed by the public sector undertakings (PSU)-- await the grant of forest clearance (FC) from the Ministry of Environment and Forests (MoEF) as of October 2010. Out of these, Stage-II, or final, FC is pending for two transmission projects of DVC, while nine other projects require Stage-I, or in-principle, sanction.
All these projects already have the environmental blessings of the concerned state governments. The affected projects are:

• For final FC
• --220KV D/C Dbanbad-Giridih and Mejia-Gola - Ramgarh transmission lines.
• For Stage-I FC
• --NTPC's Chatti-Bariatu coal mining project and 261 MW Rupsiabagar Khasiabara HEP.
• --NHPC's 3 Kotli Bhel HEPs and Loktak Downstream HEP.
• --DVC's 220KV D/C Gola-Ranchi transmission line.
• --THDC's 444 MW Vishnugad Pipalikoti HEP.
• --Powergrid's 400 KV D/C Mysore- Kozikode, Krishnapatnam-Gooty, Krishnapatnanm-Kurool and Parbati polling station-Amritsar transmission lines.

Barh power plant by 2013-14: NTPC CMD

NTPC is India's largest power-generating company with its current output being 32,500 MW. "The delay in the Barh power project in Bihar will affect our plans to raise our capacity to 40,000 MW by 2012," NTPC's CMD Arup Roy Choudhury said here on Monday. 

Choudhury, during his maiden visit to Bihar after assuming his new assignment, said the corporation has a projection to raise the generating capacity to 40,000 MW in the 11th plan. Both phase-I and II of the Barh project, with a capacity to generate 3300 MW, is likely to be commissioned in 2013-14, he told reporters here before leaving for an on-the-spot assessment of the Barh project progress and the Kahalgaon power plants. 

Earlier in the day, the NTPC CMD had a meeting with chief secretary Anup Mukherjee regarding setting up of new greenfield high capacity thermal power projects in the state. 

The state government is contemplating new thermal power stations for which NTPC is willing to cooperate. The state government is learned to have discussed the availability of adequate land and water at Kajra in Lakhisarai and Pirpainty in Bhagalpur district for setting up new plants. 

As for the Barh project, CBI is investigating alleged pay-offs made by Russia's Technoprom Exports (TPE) for getting a contract to supply boilers to the Barh project. The Rs 8,700-crore project started in 1999. The Russian firm won a contract in February 2005. 

However, work on the project came to a halt after a contractual dispute between NTPC and Technoprom, with the latter demanding more money due to rise in prices of steel. 

"Forget about the past. You (read journalists) visit the Barh plant after two months and see the progress," a confident Choudhury told newsmen. 

NTPC scraps civil work contracts for its projects in Assam and Uttarakhand due to delays in equipment deliveries from contractors

Country's largest power company, NTPC, is believed to have scrapped civil work contracts for its projects in Assam and Uttarakhand due to delays in equipment deliveries from the contractors.

The company board has taken a decision against two contractors -- SPML at its Bongaigaon project (Assam) and SSJV & ZVS at Tapovan Vishnugad hydro project (Uttarakhand), sources said.

NTPC is setting up 750 (3x250) MW Bongaigaon power project in Assam at Salakati, Kokhrajhar District in Assam, the main Plant. The offsite civil works were awarded to SPML Infra Ltd, formerly known as Subhash and Marketing Ltd, Kolkata in 2008.The unit commissioning programme of this project is getting hampered due to delays in execution of civil works by SPML, sources said.NTPC has floated a fresh tender inviting bids for civil works at its Assam project.

Similarly, 520 MW Tapovan Vishnugad project at Uttarakhand is also scheduled for commissioning in 2012.NTPC presently has an installed capacity of over 32,694 MW, which operates 28 power stations across the country. The company has over 16,000 MW capacity under construction at 17 projects in 12 states. NTPC plans to become a 75,000 MW by 2017.

Seven candidates to appear for an interview before Public Enterprises Selection Board on November 25 for selection of next chairman of CIL

Seven candidates will appear for an interview before the Public Enterprises Selection Board on November 25 for selection of the next chairman of Coal India Ltd.Mr Partha S. Bhattacharyya, the present Chairman, will be retiring on February 28, 2011.

According to sources, the candidates are Mr R. Mohan Das, Director (personnel and Industrial relation) of CIL; Mr T.K. Lahiry; Chairman-cum-Managing Director (CMD) of Bharat Coking Coal Ltd (BCCL); Mr V.K. Singh, CMD of Northern Coalfields Ltd (NCL); Mr B.C. Garg, CMD of Western Coalfields Ltd; Mr B.L. Bagra, Director Finance of National Aluminium Company Ltd (Nalco); Mr A.B.L. Srivastava, Director Finance of NHPC Ltd; and Mr S.K. Rishi, Managing Director of Braithwaite & Co (India) Ltd.

Equipment purchase

Meanwhile, sources say that the board of directors of Coal India Ltd (CIL) today approved purchase of 22 heavy duty dozers for open cast mining projects worth close to Rs 400 crore from L&T and Caterpillar.The purchase is covered by seven-year spares supply and maintenance warranty. L&T will supply 16 Komatsu dozers of 850hp.

Government of Rajasthan requests for additional Gas suuply for Dholpur CCPP

Concerned over severe cutbacks in natural gas supply from the Panna-Mukta-Tapti (PMT) gas fields to Rajasthan Rajya Vidyut Utpadan Nigam Limited's (RRVUNL) Dholpur power plant, in Rajasthan, the state minister for Energy, Higher Education and Information Technology & Communication, Jitendra Singh, has petitioned the Ministry of Petroleum and Natural Gas (MoPNG) to intervene and ensure that the plant gets the full allotted 1.5 MMSCMD of gas.

• In a communiqué to the Petroleum Minister, Murli Deora, Singh has asserted though the plant has always faced a 0.1 MMSCMD deficit in gas supply, the availability of gas for the 330 MW combined cycle power project (CCPP) has drastically declined to only 0.7 MMSCMD since July this year, due to a forced outage of the Tapti gas wells.
• This is not enough to run the plant at even 50% PLF, asserts Singh, while asking for expeditious corrective action.
• Thus, the state minister has called on the MoPNG to direct the ONGC-operated PMT consortium to resume supplies at the earliest, so as to help the northern state meet the increased power demand from the agricultural sector over October 2010-March 2011.

TRS seeks EGoMs intervention for gas allocation for APGENCO's 2100 MW CCPP

The Telangana Rashtra Samithi (TRS) has come to the aid of APGENCO, in its quest for gas allocation for its proposed 2100 MW combined cycle gas-based power plant, at the Karimnagar district of the Telangana region of Andhra Pradesh.

• In a recent letter to the Ministry of Petroleum and Natural Gas (MoPNG), the political party has drawn attention to the pace of work exhibited by APGENCO on the project and has asserted that the various preparatory formalities are almost complete. Commissioning of the project, according to TRS, would hel meet the burgeoning demand for power in the state.
• Further, the project is likely to generate ample employment opportunities for the backward region, continues the letter.
• The first phase of the CCPP is to be commissioned by March 2012. The 2,100 MW CCPP would be implemented on 434 acres of land, in three phases of 700 MW, each. The cost of the project is estimated to be Rs 5,600 crore.