PFC provides additional financial aid of Rs 2.6k crore to Rajasthan Rajya Vidyut Utpadan Nigam
Foraying into thermal power segment, state-run THDC India will float Rs 8,000 crore tender this month for providing main package for its 1320 MW coal-based Khurja project, which entails an investment of Rs 12,676 crore.
"We will issue a notice inviting tender for main plant package worth around Rs 8,000 crore for 2 x 660 MW thermal power plant in Khurja in the second half of this month. We have planned to start the construction by December this year," Director THDC India Ltd Vijay Goel told PTI.
While the first unit is scheduled to be commissioned in November 2022, second unit would go on steam by April 2023.
"We are mainly into hydropower and wind power capacities. Now we would foray into thermal power segment with the development of Khurja power plant. This will significantly boost our installed generation capacity which is 1513 MW at present," Goel said.
THDCIL, formerly known as Tehri Hydro Development Corporation Ltd, is a joint venture of Central and Uttar Pradesh governments with equity sharing in the ratio of 3:1 (75:25 percent).
The equity participation of Khurja plant would also be in the same ratio. The debt-equity ratio of the plant is 70:30 percent.
Talking about the tie-up for funds for the project, Goel said, Power Finance Corporation (PFC) is willing to finance the project at a competitive interest rate of 9.25 percent because THDCIL has already acquired 1,201 acre of land for the project, which is more than sufficient.
"That is why we are also thinking about adding one more unit of 660 MW in addition to the proposed two units at Khurja," he added.
He said the company has already completed fencing of the project, and other prerequisites to begin the construction.
The total investment in the project is estimated at of Rs 12,676 crore which includes Rs 11,089 crore on power plant and Rs 1,587 crore for development of Amelia coal mine in district Singraulli in Madhya Pradesh.
The Amelia coal mine was allocated by central government in January 2017 to meet the fuel requirement of the Khurja plant. THDCIL will develop the mine in synchronisation with the commissioning of the plant.
The company has plans to extract 7.2 million tonne (MT) of coal from the Amelia mine per year which would be sufficient to meet the 5.4 MT coal demand for three units of 660 MW at Khurja plant. The coal mine has a total reserve of 270 MT which is sufficient for 32 years.
"This project was allocated to THDCIL by Uttar Pradesh (UP) government. We will be supplying power at a levelised tariff of Rs 3.61 per unit under 25 years power purchase agreements (PPAs) with partner states," he said.
PPAs have already been signed by THDCIL with UP, Uttarakhand, Rajasthan, Himachal Pradesh and Delhi.
UP has asked for a minimum of 60 percent allocation of power i.e. 792 MW. Uttarakhand and Rajasthan have asked for 325 MW each while Himachal Pradesh has demanded 200 MW. Thus PPA for 1773 MW capacity is already in place.
Approvals from Public Investment Board and Cabinet Committee on Economic Affairs are expected in next two to three months.