Companies

RPower targets 1,500 MW from Samalkot by March

S. Shanker Mumbai | Updated on March 12, 2018 Published on September 20, 2011

Mr J.P. Chalsani

21Rpower.eps

Company confident of gas supply to the plant





The 2,400-MW gas-based Samalkot power project of Reliance Power is gathering steam with all six turbines from US-based GE arriving in India.

The first set of two turbines is expected to be commissioned by December 2011 and the balance two sets of two turbines within the next two months.

Till such time the turbines are integrated into a closed cycle, where waste heat is channelised for additional generation, the first set would produce about 500 MW.

All turbines would be synchronised into the closed cycle to generate 2,400 MW by December 2012.

Gas supply

Though some concerns remain over the supply of gas, senior RPower officials are confident that it would have to come through with the Ministry of Power recommending allocation of 9.67 mscmd to the Petroleum Ministry for the plant to operate at 75 per cent PLF (plant load factor). Moreover, both fertiliser and power have been accorded priority for domestic gas by the Centre.

The spiralling coal cost, especially imported coal for thermal plants based on overseas supply, has also given RPower confidence that it would be competitive even if the plant is fuelled with some quantity of imported LNG.

In general, gas-based power could come in the price band of Rs 3.25-3.50 per unit, which could more or less the band imported coal is likely to set.

Coal Versus gas

Mr J.P. Chalasani, Chief Executive Officer, RPower, during the results conference, had said the coal cost was bound to push up the cost for thermal plants based on imported fuel and this would indirectly help the gas-based units' prices to turn competitive, even if imports are utilised to overcome the shortfall in domestic supply.

At Samalkot, two turbines have been erected and the balance four would also be in place in by the end of this month.

The US Exim Bank has provided $600 million to RPower for the equipment purchase made from GE.

RPower officials said the Central Electricity Authority officials made multiple visits to Samalkot to inspect the progress at the site. GE too accorded priority for delivery of the turbines.

The first batch of gas turbines was dispatched in April, 2011, within just six months of the contract being signed. The balance was shipped three months later in July. On the ground, the company managed to complete the foundation work for all the six turbines by this August.

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Published on September 20, 2011
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