Maharashtra may be first to set up power plant outside state

09 January 2017

In what may be a first for a state-run power utility, the Maharashtra government’s power generation company is set to expand its footprint with plans to develop a pit-head based thermal power project in the neighbouring Chhattisgarh.

This greenfield project will help it supply lower priced electricity to Maharashtra by cutting down on the cost involved in transportation of coal.

Bipin Srimali, principal secretary, energy, told DNA Money that they were planning to develop a greenfield power generation project to utilise coal from the Gare Palma coal blocks in Chhattisgarh. The Maharashtra State Power Generation Company Limited (MahaGenco) has been allocated the Gare Palma sector–II coal blocks located in the Mand Raigad coalfield in Chhattisgarh’s Raigad district. The block occupies a 2,583.486 hectare area with geological reserves of 1,059.761 million tonne (mt).

Srimali said they initially planned to produce 23.60 million tonne per annum (mtpa) coal from the mine (including open cast and underground mining) of which 12 mtpa would be used for firing 3,230 megawatt newly-added capacity at the Koradi (660MWX3), Chandrapur (500 MWX2) and Parli (250MWX1) thermal power projects. At present, these sets use the bridge linkage granted by the Centre till the time coal supply from the Gare Palma mine is not started.

“The remaining 11 mtpa spare capacity can be used to generate around 2,000 to 2,200 mw power,” he added, stating that they were considering whether a power plant which would use this coal should be constructed in Maharashtra or in Chhattisgarh after considering factors like the extraction expenses and transportation costs to the rail-head.

The MahaGenco may undertake work on the project on its own or through a joint venture with private parties, said Srimali.

The development of the mine and extraction of coal is expected to take around three to four years with the rehabilitation of the project-affected being undertaken at a parallel level. The MahaGenco has already floated expressions of interest for social impact assessment, social impact management and rehabilitation and resettlement studies.

“Around 35 to 40% of this coal consists of ash. Considering an average transportation cost of Rs 1,000 per tonne for coal, we will be spending Rs 400 per tonne for transporting this ash,” said Srimali. “So, we are planning to wash the coal, set up a plant there (in Chhattisgarh) and supply the electricity to Maharashtra,” he added.

This will also bring down the costs of electricity produced from the power station.

Srimali said this would be the first instance of the state-run MahaGenco developing a power project beyond Maharashtra’s boundaries.

MahaGenco has seven coal-based thermal power generating stations across Maharashtra.

Source – DNA India