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DVC-SAIL joint venture to set up 500-MW power plant

Kohinoor Mandal

Rs 2,220-cr plant to come up in Jharkhand

Kolkata , Aug. 11

After the National Thermal Power Corporation (NTPC)-Steel Authority of India Ltd (SAIL) joint venture power outfit, it is now the turn of the Damodar Valley Corporation (DVC)-SAIL joint venture company to increase 500 MW capacity through a greenfield project.

Informed sources said that the board of directors of Bokaro Power Supply Company Pvt Ltd, the 50:50 joint venture between SAIL and DVC, has already approved the project.

The proposal would now be placed before the respective boards of the two joint venture partners for formal clearance.

This is expected by the end of this month.

The Bokaro Power Supply Company was formed in January 2002 and it is now managing a 302-MW generation unit and 1880 tonnes per hour steam co-generation facilities of Bokaro Steel Plant.

Sources said that the proposed new power plant would have two units of 250 MW capacity each and would be catering mostly to the power demands of Bokaro Steel Plant, Durgapur Steel Plant and IISCO plant. The greenfield project would be spread over 750 acres and would be set up in Jharkhand. Mecon has prepared the detailed feasibility report.

The total cost would approximately be Rs 2,200 crore and would be funded through debt and equity.

Though the rated capacity of the existing power unit is 302 MW, its effective capacity has dropped to around 200 mw. SAIL is installing a new boiler for this unit, to be supplied by Alstom, for increasing generation capacity.

Meanwhile, Bhilai Electric Supply Company Pvt Ltd (BESCL), the 50:50 joint venture between SAIL and NTPC, is adding fresh capacity of 2x250 mw by 2007-08. This company now produces 74 MW of power.

The total cost of the project is estimated to be around Rs 2,600 crore. All necessary statutory clearances have already been obtained. Bharat Heavy Electricals Ltd would be building the whole plant.

A total of 766 acres of land has already been identified for the project, out of which 545 acres is earmarked for the power plant and its associated facilities. Approximately 221 acres would be utilised for ash disposal.

Out of the total production of 500 MW, Bhilai Steel Plant would be consuming 280 MW. The Chhattisgarh Government would be buying 50 MW, Daman & Diu getting 70 MW and the rest 100 MW to be sold to Dadar & Nagar Haveli.

The proposed power plant would require 2.7 million tonnes of coal per annum. BESCL has already entered into a long-term agreement with South Eastern Coalfields Ltd and this would be supplied from Chhal and Barud blocks of the Raigarh coal fields.

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