The Hindu : Andhra Pradesh / Hyderabad News : SCCL in talks with BHEL

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Monday, Oct 19, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

SCCL in talks with BHEL

Special Correspondent

Rosaiah to lay foundation for 600 MW power plant shortly

SCCL to raise equity through internal resources and balance to be mobilised as debt
Coal block in an abandoned mine at Srirampur to be sourced for power project

HYDERABAD: The Singareni Collieries Company Limited (SCCL) is in the final stages of negotiations with the public sector Bharat Heavy Electricals Limited (BHEL) for supply of equipment for its proposed 600-MW power plant at Jeypore in Adilabad district.

The SCCL, which is entering power generation with the proposed plant estimated to cost Rs. 2,700 crore, has decided to raise its equity through internal resources and the balance would be mobilised as debt. Chief Minister K. Rosaiah gave his approval for the project which is expected to be synchronised to the grid by December 2012.

Coal block

SCCL managing director S. Narsing Rao who briefed the Chief Minister about the project said the coal block in an abandoned mine at Srirampur, with the capacity of producing 2.5 million tonnes a year, would be sourced for the power project.

The SCCL had already acquired the land required for the project and would shortly enter into power purchase agreement with AP Genco and the distribution companies once the work commences.

Mr. Rosaiah who reviewed the progress of works on other ongoing projects said his government was extending its full support to AP Genco for setting up new projects. The public utility had taken up 21 new projects with a total capacity of 16,195 MW involving an estimated Rs. 84,950 crore.

Two projects of 1,037 MW had been commissioned and construction works on 10 other projects were under progress.

Works in full swing

Works on 500 MW Bhupalapalli power project (Kakatiya thermal power plant Stage I) were in full swing and were slated to be completed by March next year.

Officials informed the Chief Minister that work on restoration of the left bank power house was completed and the plant would resume generation of 900 MW in a few days.

Works on the 770 MW right bank power house, which was completely inundated on October 3, would commence as soon as the water recedes.

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