GIPCL plans 600 MW thermal plant in Surat

Soon after dedicating the 250-megawatt, lignite coal-based power plant in Surat district to the people recently, the State-promoted Gujarat Industries Power Corporation Ltd (GIPCL) is now planning to invest around Rs 3,000 crore on in its second phase of nearly 600 MW on a greenfield thermal power project in the next two years.

The company has already invited proposals on engineering, procurement and construction (EPC) basis in an international competitive bidding for setting up of the Surat Lignite Power Plant (SLPP), Station II, by August 31 this year.It proposes to have two units of 250 MW each with option of up to 300 MW each of unit size.

The power plant will be based on the eco-friendly circulating fluidised bed combustion (CFBC) technology, according to official sources.

On May 30, the Chief Minister, Mr Narendra Modi, dedicated GIPCL's 2x125 MW lignite expansion units 3 and 4 , executed by BHEL, at Nani Naroli village under Mangrol taluka of Surat district. The plant had been set up with an investment of Rs 1,210 crore.In addition, the company had invested Rs 245 crore on expanding captive mining operation.

The new, 600 MW project will be financed by around 70 per cent debt and 30 per cent from internal accruals.

The Vadodara-based GIPCL's SLPP is an independent power producer (IPP), which supplies power to Gujarat Urja Vikas Nigam Ltd (GUVNL), the State's transmission and distribution company, through a power purchase agreement (PPA).At Mangrol, GIPCL will source lignite coal from captive mines having 211.14 million tonnes of mineable reserves of lignite coal in a 3,700 hectare area. Mining operations there commenced in December 2009 and lignite production in May 2010, the sources said.

GIPCL was co-promoted in 1985 as a public limited company by GUVNL (the erstwhile Gujarat Electricity Board), Gujarat State Fertilizers and Chemicals Ltd (GSFC), Gujarat Alkalies and Chemicals Ltd (GACL) and Petrofils Cooperatives Ltd.

Its 125 MW operation of Unit 3 was declared operational on April 19 while the commercial operation of Unit 4, also of 125 MW, began on April 28.

The total present capacity of GIPCL's Vadodara and Mangrol plants is 560 MW and the company is bracing up to transform itself into a national-level power sector enterprise. It commissioned its first-ever power project, a 145 MW gas-based Combined Cycle Power Plant, in February 1992 at Vadodara.

It expanded its capacity and commissioned a 165 MW naphtha and gas-based plant in November, 1997.