IPPs invest Rs 33,000 cr on their projects in Odisha

Business Standard, Nov 23, 2014

Independent power producers (IPPs) have invested Rs 32,991 crore on their proposed coal-fired projects in Odishaafter entering into memoranda of understanding (MoU) with the state government.

Among the 28 players that have inked pacts with the state government, two have commenced commercial production. The two companies are Vedanta Group firm Sesa Sterliteand GMR Kamalanga Energy Ltd.

Sesa Sterlite has fully commissioned its 2400 Mw (4x600) power project at Bhurkamunda near Jharsuguda. The company has invested Rs 8038 crore on the plant.

GMR Kamalanga has commissioned three 350 Mw units of its proposed 1400 Mw power plant at Kamalanga in Dhenkanal district. It has invested Rs 5590 crore.

Others like Jindal India Thermal Power Ltd (JITPL), Ind-Barath Energy Utkal Ltd and Monnet Power were in the advanced stage of commissioning their projects.

The IPPs that have made substantial investments on their projects are JITPL (Rs 4564.26 crore), Monnet Power Company Ltd (Rs 4100 crore), Lanco Babandh Power Ltd (Rs 4850 crore) and Ind-Barath Energy Utkal Ltd (Rs 2954 crore).

The IPPs have a combined production capacity of 37,000 Mw. The state's share is pegged at around 6000 Mw from these projects.

Odisha is currently facing an unprecedented rise in demand for power fuelled by rural, industrial and economic development. Capacity addition of about 50,000 Mw is coming up in Odisha through state initiatives, Ultra Mega Power Projects (UMPPs), NTPC and private IPPs.

Two UMPPs, each of capacity 4000 Mw are planned in the state. While the state grid will get 1300 Mw from the first UMPP at Bhedabahal near Sundargarh, the second UMPP proposed at Narla in Kalahandi district would supply 2000 Mw to the state.

NTPC is setting up two super thermal power plants in the state, each with capacity of 1600 Mw at Darlipalli in Sundargarh district and Gajamara in Dhenkanal district.

While Odisha is making all out efforts to expedite and provide necessary fill-up to the void created to meet the surging energy demand in the country, the most hindering factor for implementation of these projects is fuel security which is at stake due to the Supreme Court ruling. The apex court in its August 24 order had scrapped the licenses of 204 coal blocks allocated between 1993 and 2010.

The 18th Electric Power Survey of Central Electricity Authority (CEA) has forecast the peak demand of 5322 Mw and annual energy requirement of 33113 million units (MU) for Odisha for 2015-16. The peak power demand is expected to rise to 6749 Mw and annual energy requirement to 52566 MU for 2021-22 for the state.