The Hindu Business Line : NTPC set to award contracts for Simhadri expansion, Ennore plant

Advertisement

Hyderabad Feb. 13 The National Thermal Power Corporation Ltd (NTPC) is set to finalise contracts for the 1000-MW expansion project at Simhadri Power Plant near Visakhapatnam and 1000 MW power plant at Ennore before March 2007.

NTPC is also in the process of closing plans for a 2x250 MW joint venture power plant at Trincomalee, Sri Lanka to be taken up with imported coal from Indonesia.

The Chairman and Managing Director of NTPC, Mr T. Shankaralingam, told Business Line that the tenders have been called for both projects and are likely to be finalised by February in the case of Simhadri and by March in case of Ennore projects. Most of the clearances have been secured.

"NTPC is one of the cheapest power producers with the average rate of 164 paise per unit for the year 2005-2006 and continue to build on this capability in implementing new projects at Simhadri and Ennore," he explained.

The NTPC chief who recently visited Hyderabad and Visakhapatnam said that the site levelling work had commenced at Ennore for the 1000-MW (500x2) coal-based power plant of NTPC Tamil Nadu Energy Company.

After necessary approvals for NTPC second phase expansion at Simhadri, the contracts will be finalised.

Asked about the project cost, Mr Sankaralingam said that the 1000-MW Simhadri project had created new benchmarks with aggressive pricing of Rs 3.6 crore per MW and the current expansion would cost about Rs 4-4.2 crore per MW.

While the first phase of Simhadri 1000 MW plant was totally dedicated to the State, NTPC considered the option of selling part of the power to eastern grid. However, with the State keen on garnering all the power generated from the 1000-MW expansion, the entire power could now be available for the State.

Meanwhile the power purchase agreement for the joint venture project with Sri Lanka Electricity would be signed by end March and, as per plans, it is proposed to complete the project by 2010-2011. The project cost is pegged at Rs 4.5-4.7 crore per MW, he said.