KSK Energy Ventures Ltd expects to commission Unit-II of 600-MW of Mahanadi thermal power plant in Chhattisgarh early next year.
The boiler light up for the second unit of 600-MW of the 6x600 MW (3,600 MW) plant and commissioning of turbine generator are likely to be completed within 45-60 days. Other works are also expected to be completed by that time to enable the company commission the unit.
The first unit has been functional with all associated ancillary infrastructure. The 60-km pipeline for water intake has been completed along with the rail connectivity for movement of rakes to the plant.
While the power supplies are being made from Unit-I as per power purchase agreements, the revenue recognition is expected to commence during the latter part of the current quarter, KSK Energy informed the exchanges.
Coal-fired plant
The company is investing about $3.6 billion in the project. The coal-fired plant will supply power to Gujarat, Chhattisgarh, Goa, Andhra Pradesh and other States.
KSK Energy has long-term coal supply arrangements with Gujarat Mineral Development Corporation and Goa Industrial Development Corporation. This is from Morga-II and Gare Palma-III coal blocks, respectively.
Tapering linkage
The company has tapering linkage with Coal India for immediate needs. It is anticipating immediate term fuel supplies to be met through tapering linkage granted to it in November 2008.
KSK Mahanadi has also entered into a long-term PPA for 500 MW with Tamil Nadu Generation and Distribution Corporation Ltd at a levellised tariff of Rs 4.91 per unit. This was through a competitive bidding process.
The company shares ended at Rs 61.75, down 1.98 per cent on the BSE today.