The Hindu Business Line : NTPC signs pact for plant expansion in Kayamkulam

NATIONAL Thermal Power Corporation (NTPC) has entered into a Memorandum of Understanding (MoU) with Kerala State Industrial Development Corporation (KSIDC) for the expansion of the Kayamkulam thermal station from the existing 350 M.W. to 2,300 M.W.

The MoU, signed on Wednesday, envisages the commissioning of the 650-M.W. first gas turbine module of the expansion project in 2008-09. When completed, this will be NTPC's biggest power plant based on LNG/natural gas in the country.

Though the total cost of the project was initially projected at Rs 7,584 crore, it has now been scaled down to Rs 6,600 crore.

After the completion of the project, the cost of power per unit will substantially come down to Rs 2.50 from Rs 3.90 as of now.

According to Mr S.L. Kapur, Director (Technical) of NTPC, the implementation of the LNG terminal, as also the development of the port will be undertaken by the supplier of LNG. NTPC has already received request for qualification (RFQ) of bids for LNG procurement.

He said a total 16 bidders have responded, of which nine are for LNG supply, six for regasification and transportation and one for natural gas. NTPC is currently examining these RFQ documents. The work is likely to be awarded by August 2004.

The project is proposed to be financed by NTPC, while KSIDC will provide the required promotional support, facilitate obtaining of the necessary clearances and see to it that the project is assured of supply of cooling water.

The LNG terminal will have a capacity of 2.5 million tonnes, of which around 2 million tonnes will be required for power generation. The surplus LNG is proposed to be supplied to the other power producers and industrial users in the State.

Mr P.H. Kurian, Managing Director of KSIDC, said Kerala would receive a total of 820 M.W. from the plant after the completion of the expansion project.

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